Tuesday, July 30, 2019

Part 10 of my Housing Affordability series at Mercatus

Property Taxes Can Be a Tax on Monopoly Power.

"If politically maintained monopoly power is going to remain, claiming monopolist profits through taxes is an improvement. The fact that the tax doesn’t affect rents is a sign of efficiency. If rents must be elevated, better that they go to local public services than to the real estate cartel."

The series will continue each Monday with discussion of the effect of various regulations and taxes on housing costs.

80 comments:

  1. Nice! Are you working your way up to a more Georgist slant?

    You are already implying that a tax on location but not lumber and gypsum board (and construction labour!) would avoid all the problems. But you wisely let the reader finish the thought for themselves.

    There's an interesting twist, that I think Silvio Gesell pointed out, that if the local property taxes go to fund local infrastructure improvements rents go up (by the same mechanism as if the landlords invested in those improvements themselves: people are willing to bid higher for more desirable locations.)

    Another benefit of the silent partner is that the incentive for the landlords to work for their de facto cartel goes down

    ReplyDelete
    Replies
    1. Thanks Matthias. Gesell's point is valid, but I think one of the tricky things in today's context is separating intrinsic market value from monopolistic profits. The intrinsic market value would rise because of those improvements, so you're right, it could be that raising property taxes would increase the value of the property. But, the reason closed access prices are so high is because of monopoly profits - landlords capturing what would be consumer surplus. It's a tricky thing to untangle.

      In less constrained markets, I think it could be true, but there, it depends on if property taxes create more valuable amenities, or if they just change the funding from another tax to property tax. In that case, the value of properties would decline.

      William Fischel has an interesting theory that Prop. 13 in California was a reaction against the decoupling of property taxes from local amenities. Since state legal changes were taking property taxes away from localities, those localities voted to limit the tax.

      I'm afraid you may be disappointed in my lack of Georgist conclusions. I think the property tax gets us most of the way there. And, I think real consumption of shelter is highly sensitive to income and elastic, in terms of physical amenities, so increasing the cost of gypsum board just makes homes somewhat smaller over the long term. I don't think the housing affordability problem has much to do with the cost of materials. It has to do with location. So, I don't think it matters that much if the tax happens to be imposed on materials along with the land. The more important effect is in the cities, where land or location is the more important part of valuations.

      Delete
  2. I got an interesting blog on your website while searching for a similar matter, I have read your whole blog there is lots of knowledge available, it looks good. I have bookmarked you blog it in my system. swim with dolphins Kona

    ReplyDelete
  3. The article you have shared is interesting and informative article. i just love your way of presentation. Keep sharing more.retirement

    ReplyDelete
  4. Hi, just passing by to see something very interesting and gladly I've found it here. Thank you for your wonderful article it really helped me a lot. You can also visit my site if you have time.Gutters Raleigh NC

    ReplyDelete
  5. Very efficiently written information. It will be beneficial to anybody who utilizes it, including me. Keep up the good work. For sure i will check out more posts. This site seems to get a good amount of visitors.raleigh roofing

    ReplyDelete
  6. You are very good at building and you know the information. your service is good and material also. You work strong and durable and your stuff is also good.Social Media Management

    ReplyDelete
  7. I visit this website and i am impress by your way of discussion but very less information you share in this so kindly share some more information so the reader can easily understand which you share. Keep it up and keep sharing. 2019 Black Friday Sale Affordable

    ReplyDelete
  8. Definitely agree with the first tip because you have to make sure your home is ready before you list it in the market. Improvements are really important and staging as well will help in getting the best possible price when selling your home. After the improvements, it is also good to get a professional photographer to take photos of your home that will highlight the areas of your home and help to attract potential buyers. Awesome blog by the way and thanks for sharing.sell my house fast maryland

    ReplyDelete
  9. Opportunities for real estate investment for foreigners is wide and varied in the United States. It doesn't matter where you're from and what currency you'd be using to purchase a property, you have a property waiting for you. Real estates

    ReplyDelete
  10. Hmm!! This blog is really cool, I’m so lucky that I have reached here and got this awesome information.bandarq

    ReplyDelete
  11. The web site is lovingly serviced and saved as much as date. So it should be, thanks for sharing this with us.BAR SOAP

    ReplyDelete
  12. Hmm!! This blog is really cool, I’m so lucky that I have reached here and got this awesome information.Sonia Randhawa

    ReplyDelete
  13. real money casino games online casino games for real money play slots for real money united states real online casino slots games. Sonia Randhawa

    ReplyDelete
  14. I value the website article.Really many thanks! Much obliged.Great article post. Keep writing. Satta king

    ReplyDelete
  15. Took me time to read all the comments, but I really enjoyed the article. It proved to be Very helpful to me and I am sure to all the commenters here! It’s always nice when you can not only be informed, but also entertained.online education

    ReplyDelete
  16. Definitely agree with the first tip because you have to make sure your home is ready before you list it in the market. Improvements are really important and staging as well will help in getting the best possible price when selling your home. After the improvements, it is also good to get a professional photographer to take photos of your home that will highlight the areas of your home and help to attract potential buyers. Awesome blog by the way and thanks for sharing.we buy houses florida

    ReplyDelete
  17. You might comment on the order system of the blog. You should chat it's splendid. Your blog audit would swell up your visitors. I was very pleased to find this site.I wanted to thank you for this great read.best florida online real estate school

    ReplyDelete
  18. Hi, just passing by to see something very interesting and gladly I've found it here. Thank you for your wonderful article it really helped me a lot. You can also visit my site if you have time.animated short film

    ReplyDelete

  19. I loved hearing which projects were worth doing again!! I hope that you are able to have your little boy or girl (I’m hoping for a little lady for you 🙂 ) before they have to induce. But either way prayers for a healthy and safe delivery.vr video

    ReplyDelete
  20. There! Homeia is a website that organizes and publishes real estate content thoughtfully to make it much quicker for you to find the information you want, when you want it. Besides, Homeia also specializes in digital marketing for real estate businesses, including home builders, realtors, and property managers.read at 3ptechies

    ReplyDelete
  21. Yes, this is the wonderful information that you shared with us. Investing with the help of equality funds is a very wonderful opportunity in real estate.read at sciburg

    ReplyDelete
  22. Some other gems include the Art Hotel, supermodern meets 17th-century classic at the splendidly incongruous Art'otel. The hotel is fronted by a seven-storey glass structure, connected by glass walkways to four beautiful old town houses at the back. And it works brilliantly. budapest short term rentals

    ReplyDelete
  23. I definitely agree with the first tip because you have to make sure your home is ready before you list it in the market. Improvements are really important and staging as well will help in getting the best possible price when selling your home. After the improvements, it is also good to get a professional photographer to take photos of your home that will highlight the areas of your home and help to attract potential buyers. Awesome blog by the way and thanks for sharing.ki residences condo

    ReplyDelete
  24. I think about it is most required for making more on this get engaged. Oregon Business Registry

    ReplyDelete
  25. Hi, Our fully furnished and well equipped apartments available for short term rental between 1-6 month or long term from 6 month onwards for affordable monthly rentals, together with the comfort of a weekly cleaning service if desired. Everything like electricity, heating, TV, WiFi, washing machine/dryer, water, taxes, common fees are included. Just send us details which kind of apartment you are looking for e.g how many bedrooms, which district, renting period … and we will find the perfect place for you. Just fill out the contact form next to the listed apartment. Budapest Immobilien

    ReplyDelete
  26. This is a very good tip particularly to those fresh to the blogosphere. Short but very accurate information… Thank you for sharing this one. A must read post.Home Appliances

    ReplyDelete
  27. We offer a comfortable and trouble-free holiday experience in our motor yacht charter and luxury gulet charter services. We have a portfolio that meets all luxury demands such as jacuzzi, speedy, air-conditioned in all our motor yachts. For more visit gulet charter turkey

    ReplyDelete
  28. Super site! I am Loving it!! Will return once more, I’m taking your food likewise, Thanks. 토토

    ReplyDelete
  29. Thanks for your marvelous posting! I really enjoyed reading it, you happen to be a great author. I will remember to bookmark your blog and may come back in the foreseeable future.

    Read More:-

    Sattaking

    ReplyDelete
  30. Thanks for sharing information. Restoration Company Cincinnati team specializes in drying, cleaning, controlled demolition, and making that area fit for re-occupancy.Our job is to minimize damage to your home or commercial building and make it safe.Keep posting!!!conservatories

    ReplyDelete
  31. I think it could be more general if you get a football sports activity. 메이저사이트

    ReplyDelete
  32. I have composed before about the need to practice due constancy when buying business land. The need to research, prior to Closing, each huge part of the property you are securing.fast flirting

    ReplyDelete
  33. This is an awesome motivating article. I am practically satisfied with your great work. You put truly extremely supportive data. Keep it up. Continue blogging. Hoping to perusing your next post.
    Marketing tools

    ReplyDelete
  34. Improvements are really important and staging as well will help in getting the best possible price when selling your home. After the improvements, it is also good to get a professional photographer to take photos of your home that will highlight the areas of your home and help to attract potential buyers. Awesome blog by the way and thanks for sharingprivate health insurance for my family

    ReplyDelete
  35. I'm really loving the template/theme of this website. It's simple, yet effective. A lot of times it's challenging to get that "perfect balance" between user friendliness and appearance. I must say that you've done a superb job with this. Also, the blog loads very fast for me on Internet explorer.private health insurance for my family

    ReplyDelete
  36. Excellent effort to make this blog more wonderful and attractive. Kevin Galstyan

    ReplyDelete
  37. Can I simply say what a aid to search out somebody who actually is aware of what theyre talking about on the internet. You positively know tips on how to carry an issue to light and make it important. Extra individuals need to read this and perceive this aspect of the story. I cant consider youre no more popular since you undoubtedly have the gift.millionare dating

    ReplyDelete
  38. Can I simply say what a aid to search out somebody who actually is aware of what theyre talking about on the internet. You positively know tips on how to carry an issue to light and make it important. Extra individuals need to read this and perceive this aspect of the story. I cant consider youre no more popular since you undoubtedly have the gift.millionare dating

    ReplyDelete
  39. This is an excellent post I seen thanks to share it. It is really what I wanted to see hope in future you will continue for sharing such a excellent post. 먹튀검증업체

    ReplyDelete
  40. There are some places my parents have lived, where their neighborhood does not have the concept of donating, so they just put all their stuff on the side of the road the night before garbage day.click here

    ReplyDelete
  41. raw chicken online
    fresh raw chicken online
    raw chicken delhiFor you to visit the chicken shop whenever you get a craving to eat chicken is not effectively possible. Timings, traveling, distance, etc. can all proceed against you whenever there is an immediate as well as an insatiable desire to eat the delicious chicken. And that’s where Giggsmeat.com appears in the picture. Here at Giggsmeat.com, we suggest you opt the more intelligent as well as the quick process to Order online organic Chicken from us.

    ReplyDelete
  42. Remarkable issues here. I'm very satisfied to see your article. Thank you so much and I am having a look forward to contact you. Will you please drop me a e-mail?sugar daddy

    ReplyDelete
  43. Hi, Its like you read my mind! You seem to know so much about this,like you wrote the book in it or something. I think that you could do with some pics to drive the message home a bit, but other than that, this is great blog.mini storage

    ReplyDelete
  44. I have followed up your guidelines and I would like to tell you that my business is on right line now. I also have been using bookkeeping services to manage my accounts.mini storage

    ReplyDelete
  45. Hey what a brilliant post I have come across and believe me I have been searching out for this similar kind of post for past a week and hardly came across this. Thank you very much and will look for more postings from you.who buys houses fast

    ReplyDelete
  46. Hi, Its like you read my mind! You seem to know so much about this,like you wrote the book in it or something. I think that you could do with some pics to drive the message home a bit, but other than that, this is great blog.Lifestyles Sports

    ReplyDelete
  47. I should remark on some general things, the website style is perfect; the articles are great. Thanks for the ton of tangible and attainable help.Elixir software development company

    ReplyDelete
  48. I certainly like your web site but you need to test the spelling on quite a few of your posts. A number of them are rife with spelling issues and I in finding it very troublesome to inform the reality on the other hand I’ll surely come back again.Elixir software development company

    ReplyDelete
  49. I just couldn’t leave your website prior to suggesting that I reallly enjoyed the standard information a person supply on your visitors?Is gonna be again frequently in order to check up.search engine marketing

    ReplyDelete
  50. I just couldn’t leave your website prior to suggesting that I reallly enjoyed the standard information a person supply on your visitors?Is gonna be again frequently in order to check up.search engine marketing

    ReplyDelete
  51. I am reading at this blog. Loved it. I’m not a rental investor lover but got some ideas while reading your this post. Now, sharing your blog with my lovely twitter community.printing in burnaby

    ReplyDelete
  52. Its really good post here. Thanks for taking the time to post such valuable information. Quality content is what always gets the visitors coming. printing in burnaby

    ReplyDelete
  53. I just couldn’t leave your website prior to suggesting that I reallly enjoyed the standard information a person supply on your visitors?Is gonna be again frequently in order to check up.Actualité

    ReplyDelete
  54. Different people think differently and it's the annoying situation for all those who have been working and planning for online stuff, come on and check out our latest articles on this issue, we hope you would like my stuff.All Shop Biz Store

    ReplyDelete
  55. Different people think differently and it's the annoying situation for all those who have been working and planning for online stuff, come on and check out our latest articles on this issue, we hope you would like my stuff.All Shop Biz Store

    ReplyDelete
  56. One of the basic questions you have to answer when you get a real estate investing website is "How do I get my website configured to get the best results?" Real estate investing has many business models - buying houses, buying notes, short sales, fixing and flipping, wholesaling. The list goes on and on. Or your business can be a combination of different business models.comprar casa

    ReplyDelete
  57. If you have a property to sell, we recommend finding a buyer for your existing property before starting your search. Early preparation is key to a successful sale – we can help you establish its market value and find you a buyer.mortgage note brokers

    ReplyDelete

  58. Blogging in the real estate business is great for expanding your business. Write fresh & valuable content for your blog. Blogs gives you more leads. Share your reviews on social media and that will automatically boost your business. Thanks, for sharing this valuable & informative post with us.hausverwalter mülheim

    ReplyDelete
  59. Thanks for sharing the post..parents are worlds best person in each lives of individual..they need or must succeed to sustain needs of the family안전놀이터

    ReplyDelete
  60. Thanks for allowing me to view this portal which is full of relevant knowledge. We have reviewed the information provided and can claim that this is quite authenticated and we would recommend this to our friends. buy CBD

    ReplyDelete
  61. I do think that you ought to write more about this topic, it might not be described as a taboo subject but usually individuals are too few to chat on such topic.buy CBD

    ReplyDelete
  62. Improvements are really important and staging as well will help in getting the best possible price when selling your home. After the improvements, it is also good to get a professional photographer to take photos of your home that will highlight the areas of your home and help to attract potential buyers. Awesome blog by the way and thanks for sharing. For more view
    visit site.

    ReplyDelete
  63. To know more about Chief Dr Lucky you can visit his website (https://chiefdrluckyherbaltherapy.wordpress.com/)
     
     A friend that suffered from Herpes and was cure with the help of this great herbal doctor Chief Lucky so i decided to contact him for help in getting rid of my families genital herpes virus 1/2 which i did and all i was told to provide was just some useful information and some materials used in preparation of the natural cure and that i did and now i am the happiest person on earth because i am writing this testimony of mine with joy and happiness in my heart to the whole world to know that natural remedy is real because i am a living testimony of Chief Lucky traditional herbal cure and i want you all to contact Chief Lucky via his email: chiefdrlucky@gmail.com or WhatsApp him +2348132777335 am sure he will help you too.

    ReplyDelete

  64. This is some really good information about probate attorneys. My grandmother needs to start getting her estate planning set up. I liked that you pointed out that it would be smart for her to consider starting a trust. It does seem like we should talk to a professional about what the next step is.Leather Jackets

    ReplyDelete

  65. This is some really good information about probate attorneys. My grandmother needs to start getting her estate planning set up. I liked that you pointed out that it would be smart for her to consider starting a trust. It does seem like we should talk to a professional about what the next step is.Leather Jackets

    ReplyDelete
  66. best site for satta king result, leak number all game record charts. We provide 100% fix number.

    ReplyDelete
  67. best site for satta king result, leak number all game record charts. We provide 100% fix number direct from Satta king gali company which includes all famous games like Satta king Desawar, Gali Satta, Ghaziabad, Faridabad, Shri Ganesh Satta, Taj Satta King, charminar and other games of Satta Market Matka is also a simple game and essentially is a form of old lottery games. Ratan Khatri was the founder of this game in the 70 century and was become popular up until the 90 century. The game is not played that much anymore mostly in the regions of North India and Pakistan. Instead, many enjoy the lottery games Satta king result more so these days.

    Here is an example card. satta-king.online is the no1 satta king site where you can get the fastest Satta result, Satta king leak number (confirm jodi), Old Satta King ghaziabad, Daily leak Jodi, Desawar Jodi, Satta king faridabad, Satta record chart, Satta king taj, Gali Satta result, Ghaziabad Satta Result, Satta Bazar result and 100% passing fix Jodi today.

    ReplyDelete
  68. Real estate can have a devastating effect just like any other investments. Natural disasters like fire and hurricanes can make a serious dent with your asset, while those who bought a house in Detroit is probably wondering what happened to their supposedly “safe investment”.What to ask of your property manager

    ReplyDelete


  69. There are many ways to handle this situation. The problem is that the original products are made to be stiff, so they can stay lodged in the frame properly. If you plan to replace them, you will need to consider using a sheet of plywood underneath, for proper support.Sell your houses during foreclosure Tampa

    ReplyDelete
  70. This is highly informatics, crisp and clear. I think that everything has been described in a systematic manner so that reader could get maximum information and learn many things.Bodrum Houses for sale

    ReplyDelete
  71. Much appreciated such a great amount for this data. I need to tell you I agree on a few of the focuses you make here and others might require some further survey, however I can see your perspective.Sell your houses during foreclosure Tampa

    ReplyDelete
  72. Your site is very informative and it has helped me a lot And what promotes my business
    Satta King
    Satta King
    Satta King

    ReplyDelete
  73. Listproperty is a platform for organisations and private property owners in Nigeria to advertise their properties. Houses

    ReplyDelete
  74. What is a blogging site where people give a lot of quick feedback?

    My site : 풀싸롱

    ReplyDelete
  75. Your content is very inspiring and appriciating I really like it please visit my site for Satta King Result also check Sattaking and also check satta king
    and for quick result check my site Satta king and for super fast result check Satta king result also check my site for super fast Satta king

    ReplyDelete