Alright, Tax Wealth, Not Work (TWNW). Let’s say the wealth tax got implemented at 2% on wealth over 10 million. I’m unclear on whether it would increase single home ownership and reduce the number of available rentals and thus make it even more difficult to find living space. Or would the tax revenues from it allow for the construction of more community housing?

  • JumpyWombat@lemmy.ml
    21·
    12 days ago

    The 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.

    • Steve@communick.newsEnglish
      41·
      12 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
        3·
        12 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.newsEnglish
          11·
          12 days ago

          Maybe fewer people faced higher rents since more bought instead. But that would depend on the details of a specific market.

          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.