Posted by peter_d_sherman 1 day ago
Further, when land taxes are passed down, they focus of physical goods and ignores IP and contract value. This means they are more flatly distributed throughout the population.
Third, many high return activities require almost no land. A stock trader or bank might make millions with the nanowatt of natural resources needed to flip a bit in a database. A plumber might need a lot of natural resources to fix your toilet
We already tax houses, and by comparison stocks are more liquid than a firehose and easier to value than a $2 bill. There is no excuse.
As I have grown my small business, I have come to an appreciation for how comically lopsided the tax code is to push all of the taxes out of the invest/return economy and into the work/consume economy. It's really quite something. Anything to avoid the right side of the Kuznets Curve!
You may wonder why two-thirds of the Fortune 500 are incorporated in Delaware. Is it because the cost of incorporation is lower than in other states, or because corporate tax rates are lower? Those are factors, but they are not the primary reason. The primary reason is risk avoidance, and in particular legal risk avoidance.
Delaware benefits from a flywheel effect: Because so many companies are incorporated in the state, its Chancery Court has a more developed set of case law than other states, and so outcomes of lawsuits involving corporations are more predictable -- which makes it an even more attractive place to incorporate, which continues the flywheel effect.
The down side is that the state is incredibly dependent on corporate licensing fees and escheatment. States like Nevada have, in recent years, been competing against Delaware as a corporate haven, and if we start to see a significant migration, we'll be in a real pickle, because the state imposes no sales tax and has relatively low property taxes.
but the parent poster is correct: it is unambiguous and well litigated in its benefits and downsides.
even if the benefits are only mild, it makes it easy to map out and control the legal risks.
A quick online search returns mostly business related articles so I guess it's some corporate analogy.
I'd rather call it a positive feedback loop.
If we are talking about a flywheel as an energy storage, low friction is a key component of its ability to store energy as a buffer. If this was not the case, the flywheel would lose its energy quickly on its own and the buffer would be gone.
> People love to use it to describe a forever growing thing, when it’s actually just a buffer.
A thing has other characteristics other than its intended purpose. Your assumption that you need to use intended purpose for a successful analogy is false.
This means the supply of 1-4 unit homes will go down over time for those who want to rent.
Not being nitty, just didn't follow how your point connected and wanted to make sure I understood it.
But we might say it does not feel very humane
- increases in other taxes/other income sources
- decreases in services
- public debt
As someone who shares your view that housing shouldn't be purely market-driven, IMO it's especially important to consider the other side of the equation, because some people invest a lot of time, effort and money to prevent the first option.
One "obvious" income source would be to hire more tax collectors and let them focus on the largest conglomerates, but not like that's ever gonna happen.
- NH gets nearly 2/3 of its revenue from property taxes
- OR raises more of its revenue than CA in income tax
- TN/AZ are a close 2nd/3rd to WA in sales tax revenue
This is an interesting chart, but it really is showing one policy dimension - choice of tax base.
- NH gets nearly 2/3 of its revenue from property taxes
[1] https://reason.org/commentary/ranking-the-states-most-and-le...
And pet peeve, personal income tax and corporate income tax are almost the same thing. With few exceptions the individual person does not pay their income tax, the corporation does, and for those exceptions the individual is the corporation. Income tax is really a sales tax on a corporation biggest expense, it's payroll.