Quote:
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A tax on rent is like any sales tax; those who see the direct effects are the buyers (renters), not the sellers (landlords), as the tax will be passed directly on to the tenants.
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The reason why is:
1. because presumably the landlord is already charging market rates so what are they going to raise it to?
2. shifting rents off of buildings and on to land will incent such a building boom of housing concentrated in the urban core that vacancy rates will soar and rents will drop like a rock.
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