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Do you seriously believe that the government pays back tax income to homeowners? It doesn't. That's not how tax deductions work.
Homeowners directly subsidize the existence of renters. Property taxes pay for everything in our world. Do you like garbage collection? Renters do, but they don't pay a dime for it. Mail service? Education? City beautification? Public spaces? Local hospitals?
Thank the homeowners, because they pay for all of it.
This is nonsense on stilts. Businesses pay a huge chunk of those taxes too. The mom-and-pop business I worked for a couple years ago have a little one-story manufacturing plant on a four-acre property. Their property taxes were $11,000 -- per month. Try to tell them that homeowners pay for "all of it." And as others have pointed out, renters pay too, unless you suppose that landlords just eat their property tax bill instead of building it into the cost of their rent. Not to mention many of the services you claim are supported by property taxes clearly are not.
This is nonsense on stilts. Businesses pay a huge chunk of those taxes too. The mom-and-pop business I worked for a couple years ago have a little one-story manufacturing plant on a four-acre property. Their property taxes were $11,000 -- per month. Try to tell them that homeowners pay for "all of it." And as others have pointed out, renters pay too, unless you suppose that landlords just eat their property tax bill instead of building it into the cost of their rent. Not to mention many of the services you claim are supported by property taxes clearly are not.
... And?
We're talking about homeowners here. The discussion up to now discussed homeowners vs. renters, not business owners. I know very well how much businesses pay in taxes.
renters pay for it also- you dont think landlords pass proprty tax on to their tennants
Not really.
Do you truly think that landlords add up all of their annual expenses, divide by 12, and set their rent levels at that amount?
Mortgage, insurance, property taxes, garbage, sewage, water, annual fuel bill, and $200 for repairs; summed together for the year's expenses, and divided into monthly portions?
They do not.
Rent levels are usually market driven.
I have done the math that you suggest. But it would produce rent levels set at 50% of the neighborhood average.
Many apartment buildings near mine have no outstanding mortgage. My biggest payment, but many do not have one. So where does their rental income go? Do they lower their rents? No.
landlords usually set their rents by the neighborhood average.
Right now, many landlords are forced to raise their rent levels by the increase in oil prices. They took a bath last winter paying for heating oil. So now they must raise rent levels to meet the price of oil. but this is not the normal way that they set rent levels.
I do not include heat in our apartments, each renter pays for their own heating fuel. So the increase in oil prices did not effect me as a landlord. My rent levels are not going up [not yet].
I set our rent levels by the neighborhood's average.
If they don't they are fools;and are not making a profit. Sure they pass on taxes and even maintenance. Otherwise they will be in the hole real quick.Just a apartments that pay gas and other utiliuties pass on the increases.The average includes the taes if that is what you go by.If they can't afford to raise the rent then they must have pretty bad places and can't get renters. The only reason to not raise is a lease and most leases have a margin built in over the period.
Sounds like a good reason for renters to become homeowners. Everyone can buy a home if they want one. they might have to learn to live within a budget, or make some other sacrifices.
Some chose not to do so, let em weep
If free markets actually existed, yes, (almost) everybody could buy a home, and renting would be a voluntary choice.
But free markets in land and housing do not exist, and government prices out low-wage workers by design.
In a free market, people would be able to buy real property in increments they can afford. Can't afford a 3BR house on a quarter-acre lot? In urban and suburban America, minimum lot sizes typically run in the neighborhood of 10,000 square feet, or somewhere between one-fifth and one-quarter acre.
Can't afford that much land? All you want and need is a tiny house on a 2,500 square foot lot? Sorry, you're just out of luck.
By allowing homes on smaller lots, almost all Americans with either:
a) no children and the equivalent income of a full-time job, or
b) no more then two children and the equivalent income of two full-time
jobs (e.g. two working spouses)
could buy a home and could buy that home WITHOUT ANY GOVERNMENT LOANS, TAX BREAKS, OR SUBSIDIES.
In the meantime, millions of Americans can't buy a home and are involuntary renters.
There are some places that allow tax deductions for renters.
Also, home owners pay a significant amount in property taxes.
I'm not aware of any states which allow tax deductions (similar to tax deductions for homeowners) for renters.
Some states DO have property tax 'rebates' which are given back to taxpayers through income tax credits - and I'm guessing this is what you had in mind. These tax credits are usually intended to rebate property taxes above a specified percentage of a taxpayer's income. A few of these states extend these property tax rebates to renters, usually by allowing renters to apply some percentage of rent to the formula used to calculate the rebate (income tax credit).
While homeowners do pay a significant (and often exorbitantly high) amount in property taxes, in most states their homes are taxed at lower rates than rental and commercial property.
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