I think that the implication was that they would have to sell in order to come up with the cash to pay the tax?
Comment on How would a wealth tax affect real estate rentals?
JumpyWombat@lemmy.ml 2 days agoThe idea is to make the wealthy sell some of their assets. Thus driving the price of those assets down. If people horde fewer houses, the market of buyers shrinks and prices fall.
If it’s a tax on wealth, what difference does it make if you own an asset or its value in cash?
By the way: sales may reduce the stock of properties for rent driving the prices up.
bitcrafter@programming.dev 2 days ago
Steve@communick.news 2 days ago
Not necessity. Since housing will be cheaper to buy, some will do that instead of rent. so the market of renters will be smaller, keeping rental prices in check.
JumpyWombat@lemmy.ml 2 days ago
In the Netherlands they tried that gamble and it didn’t work well. The stock for rent decreased with more houses sold, the prices kept growing as usual, and effectively more people faced higher rentals.
Steve@communick.news 2 days ago
Maybe fewer people faced higher rents since more bought instead.
As I said the tax itself won’t fix everything. If rents get too high you need to adapt zoning to encourage more duplex and multifamily homes.