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There's a reasonably simple change that would allow application of Harberger's taxes. 1. Restrictions have to have a "controlling party": a dedicated party tha
by kilotaras 2y ago
There's a reasonably simple change that would allow application of Harberger's taxes.
1. Restrictions have to have a "controlling party": a dedicated party that controls the restrictions and can agree to lift it. Classical example would be HOA, but it can also be a seller if they want to sell property with additional restrictions.
2. The controlling party sets the price of a restriction
3. Restricted party can remove the restriction paying price set in 2 to controlling part.
4. The controlling party pays tax as percentage of price set in 2.
- s1artibartfast 2y agoSo you still have renters paying property taxes. Renters are the controlling party. Landlords are the restricted party- they can not rent to other people or use the house themselves.
- kilotaras 2y agoIn a supply-restricted markets taxes and subsidies are ultimately paid by a supplier independent on who actually transfers the money to government.
- s1artibartfast 2y agoSure, but that doesn't preclude crappy government tax policy having an impact on markets. Consumption and supply is not fixed and taxes aren't a free lunch.