u/sajnt

The unindoctrinated and apostates are punished with the rent. New recruits pay the high cost of mortgages. And devotees live in submission to something that requires upkeep and is not mathematically optimal.

I think this could help solve the old granny with a house, problem that many people get stuck on because only commercial properties would experience the LVT system. The LVT rate would be higher than the residential property tax rate.

It would probably also need to be separate from the zoning system so that any portion of land that business is operated on would qualify as commercial property. If a Landlord rents out a single-family home that entire lot would qualify as a commercial property.

Mixed lots seem a little bit tricky though. For example, someone who rents their basement suite or a home business. But I guess accountants already deal with that when people deduct a portion of their mortgage interest as a business expense.

I guess it would essentially just be a primary residence exemption but it seems like it would solve many of the current problems, such as empty lots, neglected buildings/slumlords, sprawl, etc.

What do you all think?

Edit to clarify* primary residences wouldn’t be exempt from taxation. They would be exempt from the LVT system meaning they would stay in a property tax system.

I think in the order for LVT & CD to be politically viable there needs to be enough pressure in the system. Such as the majority of voters being renters. Unfortunately, I think that the cyclical nature of the system is a sign that there are engineered pressure relief valves that prevent adequate pressure from building.

An anecdotal example is that housing cost continually increase pushing more and more people away from the possibility of homeownership but before reaching critical mass, there is a convenient downturn in real estate. Now, a portion of well off renters are able to purchase at these lower prices and their interests began to align with the rest of homeowners.

I have noticed that most of the empty lots, that have sat for years, in Surrey BC are selling or sold. I think this is because of the recent decline in the market. People must be starting to fear that their free ride is over.

Our government has not implemented any georgist policies but I think the mechanisms that play are similar. While the market was climbing, people thought that they owned a cash cow, but now that there is a decline they might be looking towards real productive investments instead.

This is all anecdotal and just my observations, of course.

Personally, I’m glad to see these lots selling, but I fear that the government will inject just enough stimulus to maintain the status quo. Canadians love, kicking the can down the road.