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Property Tax Vs Income Tax

bipedalhumanoid · 2010-11-11 08:57:29

Over the past couple of years I have heard various economists claim that a property tax would be less damaging to the economy than increasing income tax. This makes absolutely no sense to me. My question is, given that a property tax will come with exemptions for people who can't afford to pay it (unemployed/pensioners…

11-11-2010 09:57AM

#1

bipedalhumanoid

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Over the past couple of years I have heard various economists claim that a property tax would be less damaging to the economy than increasing income tax.

This makes absolutely no sense to me. My question is, given that a property tax will come with exemptions for people who can't afford to pay it (unemployed/pensioners etc), how is extracting money from the economy via property tax any less damaging than extracting exactly the same amount of money from the economy through income tax?

As far as I can tell, the only difference between the two methods is that the former is places the burden on property owners while people who pay rent get away scott free, while the latter is a broader tax net. Is the idea that tenants will be able to continue spending while we screw over people who own their homes?

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