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(lemmy.blahaj.zone)
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this post was submitted on 21 Mar 2025
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Microblog Memes
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I like your thinking. Personally, I prefer easier schemes that are difficult to avoid.
Schemes like yours, while good on paper, are often circumvented through shell companies and foreign residency.
I prefer a scheme where we just tax all real estate at a quite high rate, somewhere in the 1-5% range. Let's say that a simple apartment would then result in €5K tax. A family home €10K.
Every citizen gets to subtract up to €5K of property tax from their income tax. So a family might pay €20K income tax, but can subtract €10K.
End result is a progressive property tax, which actually decreases tax on normal people.
People with expensive homes, foreign owners of homes and people who own multiple homes would be paying significantly more tax without the possibility to subtract it
I have two problems with that - first, it doesn't directly address empty homes. Housing could still be commoditized, they just pay a larger tax - if they can make property prices go up even faster it would eat the difference
Second, messaging - people will hear that and ask "what does that mean for my property tax?" endlessly. It doesn't matter even if every individual would pay less, it's too mathematical and people won't do the math - they'll listen to their favorite voices tell them what it means
The nice thing about my idea is that it would crash the housing market, but it would do it by playing on a sense of justice. How is someone going to stand up and say "why can't I have a bunch of empty houses while we have homeless camps?". Many people would resist, but they have to do it while sounding like entitled assholes
Also, I think it would work for foreign investors and shell companies perfectly - see, it doesn't matter who owns the home, it matters who claims to live in it
A company doesn't live in a house. A foreigner can't say they're living their 6 months of the year when they're not in the country that long. A resident can claim a house and a secondary home (however that works out), but companies can't claim any - they need actual people to live in the home or it's vacant.
You put the fact the house is occupied first, then figure out who to tax and how much after - it doesn't matter what shell games you play, the only way around that is straight up fraud
Yes, people are sadly dumb and fall for bad messaging. I recognize that as a weakness.
The messaging should therefore be: lower property taxes for normal people by making it progressive and combating tax evasion by foreign investors.
My scheme significantly empowers normal people vs. speculators/investors. Speculators need a positive return to justify their investment.
Therefore, it will basically put a moat around the housing market that greatly benefits owner-occupiers.