Do you consider municipal property taxes (which, when the property value has risen since purchase, effectively taxes unrealized capital gains) also to be "obviously toxic"?
Yes. In regions where real estate prices explode many people are forced out of their homes because they cannot pay the increased tax. This specifically hits senior citizens hard. It's not uncommon for a property to increase it's taxes >30% some years in these boom towns. This creates an economic burden on long term residents, that is mostly used to pay for infrastructure that is needed to accommodate newcomers.
It's a pretty common belief. People having to sell/mortgage their family homes in order to pay higher taxes because their neighborhood is being gentrified is a self-feeding process. If they didn't have to pay taxes until they sold, it would seem far more just.
gamepsys|1 year ago
pessimizer|1 year ago
unknown|1 year ago
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