The argument that property taxes make Americans renters in their own houses has fueled the biggest anti-tax uprising in half a century, and local governments are scrambling.

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[–] 3 points 18 hours ago (1 child)

A Los Angeles resident who has owned a home for 50 years that’s now worth $1 million pays less than $500 annually in property taxes. Yet if their neighbor spent $1 million to buy the house next door last year they would owe $10,000.

Doesn't fixing this lead to gentrification, though? Take a bunch of low cost property, raise the value of the properties, increase the taxes, and force poor owners out in lieu of wealthier home buyers?

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  • [–] [S] 2 points 16 hours ago

    Usually, when we talk about gentrification, it is in terms of changes to the rental price as a result of changes in the local business environment, like firms opening and closing amd changes in wages; however, you are correct that the economics function roughly the same way when the government is raising property taxes to force a couple of empty nesters living off their 401k out of a 5 bedroom household to move to a 1 bedroom apartment as when an apartment complex is raising rents to force a young working family out of their two bedroom apartment to a less desirable neighborhood by raising the rent, especially because both can happen when a new park opens up down the street.

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