The Regressive Nature of Property Taxes

Let’s look at wealth.

For a working man, or woman, most of their wealth is represented by their homes. Homes are the single biggest component of their wealth.

A rich person’s wealth is distributed across various investment vehicles, not just their house. Equities. Bonds. Art, jewelry, and cash. None of that is subject to property tax.

A member of the working class may own equities, bonds, art, and jewelry, and cash. But all of that is likely a much smaller proportion of their wealth portfolio.

Houses are subject to property tax. All that other stuff is not.

So, a member of the working class pays a higher percentage of his income in property tax than those whose wealth is distributed across various investment instruments.

4 comments

  1. The lottery is a regressive tax and modest income people gladly and willingly pay that tax…

  2. Not to go full Georgism, but a land value tax might be just the ticket to getting the developer class to pay their fair share. Not using the land? Taxed. CAD helps drive up land values in a scheme to make the city look good for stable property tax rates? Well tax the land use instead. I’m not an economist but LVT seems more progressive

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