Are Property Taxes Regressive? - 08-13


In parts nine, ten, and eleven of this series, I presented evidence that higher property taxes can have several beneficial effects. They can reduce volatility in home prices, and they can be a relatively painless way to extract monopoly profits for public revenue. Higher property taxes may also plausibly reduce the incentives that lead to political obstructions to housing supply that turn local housing markets into exercises in “rent-seeking,” or political behavior intended to bring profits to asset owners by restricting access to competition.