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by zeroonetwothree
3920 days ago
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Taxes on housing are very likely regressive. Even if you rent you are still paying the property tax implicitly via higher rents. And given that your need for housing is independent of your income, it's likely that low earners spend a much higher % of their income on housing (and hence on property tax). |
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There's a conundrum here where higher property tax rate decreases the rental's attractiveness to potential landlords purely by biting into the cashflow, which then creates a negative impact on the property price and the base it's taxed at.
US states with higher property tax rates (typically those with low or no income tax rates) do not generally have higher rents, and countries with higher property taxes (Germany) do not typically have significantly higher rents than their counterparts https://lareviewofbooks.org/essay/why-your-rent-is-so-high-a...