San Francisco voters approve taxes on highly paid CEOs, big businesses

Re:San Francisco voters approve taxes on highly paid CEOs, b... by rcpt on Thursday November 05, 2020 @11:15PM (#25004838)

But would the lenders adjustments offset the huge rise in prices from people not selling?

Prop 13 already locks people in. With this law they'd have an even bigger reason to bank land forever.

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Re:San Francisco voters approve taxes on highly paid CEOs, b... by titzer on Friday November 06, 2020 @12:03AM (#25005059)

I don't follow that. Suppose the tax was 100%. Real estate would effectively never appreciate, so no one would hoard it. If the tax is 0%, then it's a completely "free" market. Anything between the two just reduces the ROI.

Since a high ROI in the short term promotes speculation (and not development), it seems like this would reduce speculation and the likelihood of bubbles forming.

Of course that's a ridiculously oversimplified view. There are a zillion different ways to stack this, which is what would happen in any case. To spur development and not just buy-and-hold, the law might be written to exempt certain kinds of improvement costs.

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