Re:Foreign purchases of American homes plunge as Chinese buy...
by pytester on Thursday July 18, 2019 @08:31AM
(#20469053)
>Land has value. It is not free.
And if you derive any rental income from the land value whatsoever, you are milking money from something valuable you did not create and did not make valuable. It's a purely parasitic form of value extraction from something that isn't free.
This is why the value of land improvements (e.g. having a nice house) should be untaxed, separated from the value of the land while the rental value of the land should be taxed at 100%.
And, until we do do that, we shouldn't pretend that rent isn't largely (i.e. ~60%) parasitic value extraction.
And if you derive any rental income from the land value whatsoever, you are milking money from something valuable you did not create and did not make valuable. It's a purely parasitic form of value extraction from something that isn't free.
This is why the value of land improvements (e.g. having a nice house) should be untaxed, separated from the value of the land while the rental value of the land should be taxed at 100%.
And, until we do do that, we shouldn't pretend that rent isn't largely (i.e. ~60%) parasitic value extraction.