Posts Tagged ‘housing’

Recent posts.

April 21, 2018

Land tax (LVT) may be the best way of taxing capital and reducing house prices and economic instability. But the introduction of LVT will be disruptive and unfair, so it should be done slowly. In the short term, rent controls or expensive housing benefits are probably inevitable. “The housing crisis”, in Land tax, November 2017.

After the 2007-8 crisis, banks took big losses on securities based on US mortgages. The widespread existence of ‘non-recourse’ loans in the US may have been an important factor. Lenders may recover debt from defaulting borrowers’ homes, but not from their other income or assets. The crash of 2008.

The price of land is determined by its earning potential. An increase in land tax would cause a decrease in the capital value of the land, so that the annual cost to the landowner, paid as tax plus interest, stayed the same. Land tax, September 2017.

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