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California is chasing wealth that has feet

293 points · 870 comments · idbnstra

  1. abeppu · · focus · HN ↗
    > The land value tax can’t be dodged by leaving nor can it be passed on to renters.

    In what sense can't it be passed to renters? Esp if all landlords in the market were faced with a new land tax that they had not previously planned for, why would it not be passed on?

    1. maest · · focus · HN ↗
      Rents are already as high as renters can bear. If a tax is introduced, you'd expect landlord competition to drive down the landlord margins, not increase rents.
      1. arrowleaf · · focus · HN ↗
        And if margins are decreased, then... (what happens to new supply?)
        1. Alpha3031 · · focus · HN ↗
          The supply of land is inelastic. Property developers can't get more land by building more houses on it (and as a corollary, the eventual owner also do not get charged more in taxes).
          1. sapphicsnail · · focus · HN ↗
            They can make higher density buildings that generate more income and house more people on the same amount of land.
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