Wednesday, August 14, 2019

Part 12 of my Housing Affordability series at Mercatus

Are Property Taxes Regressive?

The conclusion:
A region that allows ample new supply and imposes higher property taxes is friendlier to households with lower incomes than a region with obstructed housing supply and low property taxes.

3 comments:

  1. Another advantage of property taxes is that they would allow a decrease on the reliance on income taxes.

    As you may know, there is a great deal of difficulty in giving poor people benefits which are then withdrawn as income rises, which leads to effectively very high marginal tax rates. Additionally, very productive people often complain that they face High marginal tax rates.

    Moreover, income taxes, globally and domestically, personal or corporate, have become a shell game Gong Show. Property taxes cannot be dodged although ownership may remain obscure.

    But I see absolutely zero traction towards moving to a system of property taxes in the United States.

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