Not American, but I would add some severe roadblocks to anything that makes basic housing an “investment”.
It’s pretty simple, just have a new real estate investment tax that is only levelled on residential properties you own but do not reside in, and that tax needs to be set at a rate higher than the property market is expected to gain. E.g. (with made-up numbers) if the property market gains 5% value per year on average, set the tax rate at 10% of the value per year. There’s an insanely slim chance you can still make money on the investment, but 99+% of investors would dump their properties immediately, leading to a massive crash where average people could suddenly afford to buy the home they’ve been renting.
Ooh ooh I love these.
Wouldn’t this have the effect of increasing rent by 10% of the cost of the property each year?
A policy this significant would cause a market crash so massive that it would entirely reshape the market. I don’t think any of us could genuinely guess how it will work out.
My hope is that it would cause a crash so significant that essentially all owned properties that are not lived in enter the market, causing homes to be sold for insanely low prices in order to avoid paying taxes, causing rates of home ownership to skyrocket. The government then needs to buy up anything leftover to rent as social and affordable housing to low-income people who can’t afford a mortgage at that time. Crashing house prices also mean that the value of these taxes drops in absolute terms as well.
Then we have a situation where everyone who has a stable income owns a home, and those who can’t will rent directly from the government at extremely affordable rates. Homes are the object we as humans own that we regularly lease to one another the most - particularly for profit or capital gain. It’s super weird and it needs to stop.
The main issue is that economists would shit their pants because so much GDP growth is locked up in our property markets. It would cause at least a recession, if not a depression, and depending on which country did it, the effects could ricochet throughout the global economy such as during the GFC.
Agree a thousand percent. Some ideas:
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No corporate home ownership
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If multiple properties are owned they must be run as a non-profit
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Move to a land-value tax so that holding undeveloped land as an investment is not viable.
I live in a rural area. Surrounding my humble 2 bedroom home are a few acres of rocks and cliffs that are vacant land with a well I have to run a small pump to get water from. The county already taxes me on this vacant unbuildable land as separate property.
I live a very simple life and make just under median income so not rolling in money by any means. If i were to get taxed on this undeveloped land as an investment it would make it unaffordable for me and I’d have to sell for less than I could afford a new home. How is this preventing land hoarding?
it’s been a while since I’ve heard about it, but iirc LVT generally evaluates and decides on taxes based on proximity to other developments, so undeveloped land or poor density land that is close to more developed housing, is taxed more heavily, while land out in the boonies isn’t taxed very heavily. it’s supposed to incentivize development in more desirable places to live, and naturally eliminate situations in which higher value plots end up getting bought up by rich people for their whims.
at the same time, it’s still a solution that’s ultimately relying on the free market to maximize their profit margins, and that being good for society, it’s just decreasing the relative profit margins for each plot of land through higher taxes. it still retains harmful forms of development, it just, potentially, eliminates them more naturally, compared to explicit bans.
Yeah that is a good question. It is meant to tax strictly the value of the land. So undeveloped rural land will be taxed very low, vs say undeveloped urban land. The idea is to incentivize productive land use of more valuable land so that as the value of the land goes up, it becomes untenable not to put it to use. In your case, it the land is unbuildable then then the tax would be quite low, even if things to get built up around you. This is just the tip of the iceberg of an economic theory called Georgism, that I am still wrapping my head around.
The problem with that is there is a very clear policy purpose and interest in making housing an investment - the vast vast majority of people will eventually own a home, and it is a forced savings vehicle because people are REALLY bad at saving for retirement. Even if you fix our lack of a social safety net, home ownership is generally seen as a public good because it encourages people investing more in and caring about their community, being willing to pay higher taxes to support more services, etc. It’s not a no brainer to make housing an investment (there are arguments against in a society with a good social safety net), but it is very purposeful through good public policy. It has little to do with the recent (very recent, relatively) buying up of single family homes by investment banks, etc, despite people implying all the time it’s some secret cabal and shadowy wealthy figures doing it for their own benefit. Everyone sees conspiracies everywhere these days.
Of course, if we’re going to say that home ownership is “good” and keep doing all the tax incentives for it, we do need to stop corporations speculating and driving up housing costs, and could do so by some targeted taxes on unoccupied properties in the same portfolio. But there’s an argument to be made that that’s a relatively small portion of the problem, since a lot of our housing stock issues can be traced back to single family zoning issues, as well as road and highway funding leading to suburban sprawl and unaffordable newly developed subdivisions while cheaper starter homes don’t exist anymore…but either way affordable housing stock just hasn’t kept up.
Why would you merge the Senate and the House, especially in the direction of the House? The Senate, being a statewide race, has a tendency to attract moderates as they need to appeal to a much broader group. The House, being significantly more local, more easily allows extremist views on both sides of the aisle. Expanding the seats and ensuring representatives represent roughly equal number of constituents as each other will itself go a long way.
The term limit of SCOTUS seems low. That almost syncs with a double run of a president allowing some to get potentially multiple appointments while others get none. That leaves the stability of the court left in some part to chance. Expanding the courts and setting the term limit in a way that each president generally gets an appointment per term would help deradicalizing the courts.
There should probably be some incentive to actually encourage domestic job production. In a global economic environment without such incentive there will continue to be job losses and even with UBI an unnecessary burden will increase over the years. That can threaten stability and lead to cutting life saving services. A CCC program can help a lot, but we also need private industry to seek domestic labor more broadly.
Municipalize infrastructure and health production. The government should actually own some factories and produce goods itself rather than the bloated bidding contractor stuff.
Don’t let public employees leave their positions only to be immediately hired back as a contractor at a much higher rate. If you want to work for the public sector, work for the public sector.
Pay public sector workers (including academia) enough to allow people that actually want to pursue those careers to live comfortably and to entice more people to transition into those careers.
Fund education for all for as long as they want it. Educating your populace means you will have a more skilled and more innovative workforce which will lead to better outcomes for everyone.
Significantly reduce copyright protections. They should not let anywhere near a lifetime, and they just serve to hamper derivative innovation.
Here’s my Supreme Court fantasy:
Every president appoints one justice, but only in their second term if reelected. Fuck cares how many justices there are at any given time.
Here’s the catch: There’s no term limit and technically no age limit… but in order to qualify, any nominee must have served at least 20 years as a federal judge and have another 15 years in the legal system (as a judge, attorney, whatever), for 35 years total experience. Oh and they should have a law degree, since that’s not a requirement right now lol.
This way you get someone with a judicial record to consider at confirmation hearings, and make sure they’re incidentally old enough that they’ll die or retire relatively soon in case they turn out to be fucking horrible.
What happens if you have a streak of single term presidents, with no new judges appointed?
I would rather see a lottery system implemented. Every year, the oldest standing percentage of judges gets retired and replaced with randomly picked judges out of a pool that meets certain requirements (these can be debated). No election, no appointment, using an auditable system, and participation is compulsory, with strict restrictions of what activities the judge is allowed to participate in while serving so that they’re discouraged from staying on term too long.
What if we turned it into a virtual supreme court like that?
Every case gets heard 2-3 times, Judges are randomly assigned from the pool of federal judges that meet qualifications.
This body could vote to impeach their members, and courts are randomly assembled for a few months at a time
The idea being, the supreme Court has one job - to decide matters of law, meaning they decide edge cases and conflicts. They need to understand the law, not have power - the goal is consistency in applying the law. A method to find consensus among top judges seems a lot more stable and effective than individuals
The problem with the Senate is that it gives land more power than people. The weight given to a Senate voter in a less populated state like Montana is like 40x that of a voter in a state like California. Abolishing the Senate would move the power of each voter closer to equality. Anti-gerrymandering measures would get you the rest of the way there.
Fund education for all for as long as they want it. Educating your populace means you will have a more skilled and more innovative workforce which will lead to better outcomes for everyone.
This needs to be more.
Fix the education system to promote children. Feed and nurture them. Give them healthy foods to fuel their minds. Feed them 3x a day if needed. Stop allowing the people to decide if this should be covered by taxes.
Eliminate grade blocks (tiers, years, whatever) so kids that excel and not be hampered by kids that don’t want to be there. I was so bored until grade 5, then someone recognized my abilities and fostered them. I was the class clown and acted out because i was bored until I was shifted into a different class which was advanced in every way. If I show top grades, maybe I shouldn’t be held back because little Tommy the bully is a dipshit (he deserves to learn at his own pace).
In later years, remove redundant classes and replace with trades for students that are not excelling. Teach them viable skills. No one needs to have history classes in high schools, unless it serves a purpose. The only option for someone with zero skills should not be military school.
And for the love that is all wholly educational, pay our teachers so much better. Promote teachers that show drive (regardless of student year). Also mandate continuing education for them.
You missed a very important one, fix the main reason billionaires don’t pay any tax:
Using your unrealised gains (e.g. shares) as collatoral to take out loans should be considered realising those gains and thus subject to capital gains tax
Income up to $50k untaxed.
I wouldn’t set a hard number value for this. Make it based on how low income is defined, or something dynamic that can change over the years with inflation.
For example, in parts of California you could be making $80k and you would still be considered low income because of how expensive it is just to live there. After paying for housing, there won’t be much left over.
At minimum, tie it to inflation. But better yet, tie to cost of living and housing prices in a district.
The problem with that is that will cause areas to drive up housing prices to expand the untaxed group to general more “upper middle class” to price out undesirables and draw in higher earners as a form of tax break. This already happens without the tax bracket scaling and would probably get 10x worse.
I don’t have a great alternative, but maybe a weighted CoL combined with 0% below median income in the district? Something like that, but that would probably cause low CoL areas to pay way more taxes. Maybe I am thinking of it wrong.
There are no financial reforms on this wish list, which are necessary to make these other reforms stick:
- Abolish PACs
- Implement campaign finance limits
- Implement campaign public funding
- Curtail/abolish lobbying
The lobbying one is prickly. Hiring an advocate for groups like homeless people, charities, minorities, protected classes, etc. may be a necessary evil to help ensure that people are heard out. At the same time, it leaves the door wide open for anyone with big piles of money to do the same thing. I suppose we could say that a repaired election process would provide all the coverage we need, but then we’re probably back to “tyranny of the majority” arguments. I’m not saying it’s solvable, but clearly something should be changed.
Hiring an advocate for groups like homeless people, charities, minorities, protected classes, etc. may be a necessary evil to help ensure that people are heard out
I think we already know what people have higher needs and have been historically marginalized and exploited. Instead of relying on private funding, we can have the state employ people to work on the project of “leveling the playing field”. that committee or bureau would be transparent to the public and have elected positions within it but not be ultimately ruled by those elected officials. we could have people with verifiable community backgrounds employed on a regular and/or contract basis. this could allow work with regional groups and even more granular than that. basically i imagine providing them grants and resources to get the pulse of the communities they serve and channel that info back through. the people that know how best to serve local communities are the advocates within them.
