[pnathan]

how about taxing the increase in property values commensurate with income tax - year over year.

that would properly align incentives. now it's just sitting on land and watching the dollars flow in - the definition of unearned wealth.

[s73v3r_]

Problem with that is now you have people who can't afford to pay that tax, because they're the people who bought when housing was inexpensive, not because they're rich. Taxing those people out of their homes is not the answer either.

[slavik81]

That can be prevented by allowing those experiencing financial hardship to defer their property taxes until they sell their house.

[amacbride]

Exactly. This is why Proposition 13, limiting annual property tax increases, passed in California in the 70s. (It's now widely maligned by outsiders, but they're usually not interested in the history.)