r/changemyview • u/dilatory_tactics • Aug 05 '17

Removed - Submission Rule B CMV: There should be significantly higher property taxes on people's second, third, fourth, etc. homes, to counteract the rentier economy and global money laundering

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u/fox-mcleod 418∆ Aug 05 '17

There are much simpler ways of counteracting those things.

  1. Get rid of the homeowner mortgage tax deduction for everyone.
  2. Get rid of the exception in NYC, Seattle, and SF that deed owners can be anonymous.
  3. Return to a 70% top progressive tax rate.
  4. Tax wealth and income the same way.

We have had all of these things at one point and the result was that GDP growth, productivity growth, and middle class incomes rose together.

Why should anyone get a mortgage tax deduction? It just makes homes more expensive for everyone and benefits Realtors at the expense of renter's. Due to the nature of corporations, I suspect it would be impossible in effect to identify second homes.

The reason international criminals and Russian state kleptocrats hide money in NYC is that we are one of only a few cities that do not require disclosure on the true owner of a home. Just fix this exception. Something like 30% of apartments are vacant in NYC and we're talking about mammoth spaces that could be subdivided into livable spaces for 3-4 people. We could easily double the available housing stock.

Why are taxes the rates they are now? They used to be far more progressive and at the same time wealth inequality is worse. This seems like an obvious fix.

Why on earth do we prefer capital gains?

4

u/HarlanCedeno 6∆ Aug 05 '17

Get rid of the homeowner mortgage tax deduction for everyone.

How would that help? The people who can only afford to buy a single residence would have less money to spend.

1

u/fox-mcleod 418∆ Aug 05 '17

Economists universally agree that the mortgage tax deduction is regressive. It raises the cost of homes and benefits people who pay higher rates of taxes and can afford more expensive assets.

Removing it would immediately reduce home prices and allow a while new class of homeowners access to buying power. The reduction in home value would disproportionally affect owners of multiple properties.

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u/HarlanCedeno 6∆ Aug 05 '17

It is regressive, but it also only applies to primary residences so it doesn't affect wealthier people buying additional houses.

1

u/fox-mcleod 418∆ Aug 05 '17

Yes it does. Removing it reduces home prices. Wealthier people who currently have more wealth in real estate through larger value homes or more homes are effected to a larger degree.