Landlords Love UBI - Universal Basic income

The ability to turn a profit upon selling, despite paying the tax over that time, is what keeps the price of land as high as society can possibly afford. The solution is to end the profitability of owning land as a store of value.

This investment sector is a "loss leader" that creates vastly more profit in a different way, which is to keep the price of labor minimal on behalf of investors (or "the general economy," if you ask the econo-shills in the media). Land is basic to everyone. So, if it's always going to cost the most the market can bear, the greatest number of people will be constantly desperate for money.

What?

Keeping land as expensive as possible keeps people taking jobs they don't want due to rent pressure. So, those in charge don't care if land hoarding only makes a little money or takes 100 years to turn a profit. It keeps labor cheap so they don't have to wash their own cars.

I can most definitely assure you that people running businesses absolutely DO care if land hoarding doesn't generate a cash flow for 100 years. Quite apart from anything else, land is often leased, not sold, so waiting for 100 years to generate any profit is a good way to watch your land simply handed off to someone else having generated absolutely nothing at all, not even what you paid for it in the first place.

Not to mention land prices are driven by supply and demand plus taxes. Sounds like someone a few comments up needs to go back to economics 101.

The difference between land and labor is the basis of classical economic theory. Land is like air. Everyone needs to sleep on land every night like we have to breathe air every moment. So, as long as it is profitable to own land as a store of value, most of society will constantly struggle for money. That's why the "laissez faire" economists wanted to abolish all taxation except on land ownership.

Your logic doesn't follow or they would be taxing the air we breathe and people would be selling high quality air.

Banks and similar investment institutions are usually the ones holding empty land for decades at a time. The entire economy is based on creating cash by banks lending people money to buy land. Land is the most popular type of loan collateral among banks. It wouldn't be if we changed the tax system. Land would be cheap and labor would be expensive.

No, the entire economy is based on creating cash by banks lending people money to buy land THAT HAS HAD SOMETHING BUILT ON IT.

People holding onto empty land for twenty years are not investors, they're just wealthy people who have neglected their business development.

And they certainly aren't banks - no group of shareholders would let a commercial bank just sit on undeveloped assets generating no cash flow, that's completely antithetical to what a bank IS. The whole POINT of a bank is to take your savings and generate short term wealth with it, that's where the interest on your money comes from.

It is not necessary for land value taxation to be so low, people buy land as a store of value. Society will be better off if only those who need land have any desire to own it.

No. People open savings accounts as a store of value. People buy gold as a store of value before they buy unused land that they just sit on.

A vacant unit allows you to declare lost income at tax time.

It's somewhat more complicated, but to state simply:

Unit A rented @ $1,000 mo
Unit B vacant@ -$1,000 mo

The rental income is offset by the lost income of the vacancy making your gross revenue $0.

So, as is your desire, the landlord gets everything he deserves. Namely nothing - to be taxed on.

There is a real estate mogul who can explain all of this to you in great detail that encompasses all the nuances of taxation as it applies to the industry.

I think you know him. Perhaps he'd be willing to sit down and share his vast knowledge and wisdom with you.

I don't have his telephone number but if you will call the Mar-a-lago Resort they will relay a message to him to call you.

Again, any landlord that would rather write off for lost income instead of, you know, not losing the income, deserves all the bankruptcies that you know they've had.

False narrative.

The rental industry is a tax shelter. It helps you keep money in your pocket instead of paying it out in taxes - lost rent, depreciation, etc.

Great way to lower your tax rate.

Ask señor Trump, he can explain it better than I.

Alright, tell you what, let's compare numbers.

You made $1000 this month at $0 tax liability.

My way:
Unit A rented @ $1,000 mo
Unit B reduced so that it can be rented @ $700 mo

I've made $1700. Let's say that I'm paying 20% tax rate - now you KNOW that he's not paying no 20%, but let's be harsh on me to give you the advantage.

After taxes, I made $1360. I make $360 more than you each month.

OH MY GOD, MAGIC! HOW DID I DO THAT? I PULLED OUT MORE MONEY FROM THE SAME LAND AS YOU

AND bad news for you, during your tax audits, your auditor goes "wait a minute, there's a similar unit in the same area that's rented for $700. That suggests you overvalued your lost income for your unit."

Now you're going to have to do your taxes again AND pay a penalty - ALL DURING WHICH TIME I'M MAKING MORE MONEY THAN YOU ANYWAY!

Sounds like you think a landlord should advertising a rental unit should just ask potential tenants what they want to pay.

You forgot depreciation and other allowable expenses....i will legally be at negative income although i am pocketing money.

Your tax rate is 20% while mine is 0% - not just on rent. That negative reduces any profits i did make as a landlord, job, or other business.

Audits don't price shop. They use your records. There is no requirement to match rent.

Again, señor Trump can provide more indepth illustration as to how you aren't doing yourself any favor by reducing rent.

I'm not explaining the fundamentals of supply and demand. You can do that in your own time.

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