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In that scheme you'd get controlled equity risk vs uncontrolled explosive equity risk

You also get a huge incentive for the financial sector to encourage bubbles (albeit a smaller one for homeowners to participate in them).

As for the political argument - you can't immediately fix a democratic deficit by moving money around.

But my point is that high property taxes requires that property holders are not a politically effective constituency.

In other words, they either have to be a small constituency, or they have to be labouring under a democratic deficit that prevents a large constituency from materially affecting policy.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Jun 14th, 2011 at 06:49:21 AM EST
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