Common Wealth Canada
@commonwealthcanada
This realtor identified the right problem: land as a long-term investment. He circles around the solution, but never quite lands on it though. Land value tax solves this (replace taxes on income and building.)
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Paypal co-founder Peter Thiel calls the US, UK and Canada a "Georgist real estate catastrophe". A giant wealth transfer from younger/working class to older/landowners. He supports taxing land (over other things) to fix housing and the economy.
"If we want real affordability we need to stop pretending that supply alone can fix this crisis. No matter how much we build investor demand is growing even faster."
Economists on the left and right agree that the fairest tax of all is NOT on what you earn from work or building homes, but on what you don't earn from rising land value.
When a neighbourhood improves, owners get the wealth; renters pay that wealth. This is a fundamental imbalance in our society that land value tax solves.
We could virtually eliminate income tax for Canadians if we better taxed land and resource rents instead. Instead, working families are getting the snot taxed out of them while rents rise.
Would you vote for a policy that makes homes more affordable, but noone could profit much from rising home prices? This is the trade-off we need to ask for future generations.
Texas has high property tax but no state income tax. As Canadians grapple over new property tax hikes, it's a good chance to understand this trade-off. Property tax is least damaging and LVT is even better. It could replace more harmful taxes on income.
UBC's Patrick Condon has 3 solutions to the housing crisis, and it's all about land. 1. Stop using tax dollars to boost demand even more. 2. Capture land value to benefit the public, not speculators. 3. Use that value to build affordable housing.
BC land value "increased by over $1 trillion over a decade. It tripled." — Paul Finch, President of BC General Employees' Union This is the largest transfer of public to private wealth happening before our eyes.
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