Stephen Kinsella On Property Tax
The push for property price increases is polluting the housing system. Can we fix it? Yes, by a proper use of the property tax
Imagine a factory producing a pollutant which harmed kids playing in the river near it. Taxing the factory’s output to repair the environment and help the kids is the right policy. The public would not have a problem with this. There is a failure to internalise the cost of the pollution by the factory doing the polluting. So the state can step in and try to repair the situation with taxes.
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