Showing posts from March, 2013

The Absurdity of Land Transfer Taxes


Facing budget problems, cities of course move towards high or never taxes.
Yet, not all taxes are the same.

When it comes to cities, a land transfer tax boggles the mind. A tax should ideally apply to all citizenry in an 'equal' manner as 'all' citizens benefit as a whole. There are exceptions of course. For example, we have progressive income taxation because richer people can swallow a greater cost than poorer people can.

To show the ridiculousness of this tax, let's look at other municipal taxes:

Property Tax Property taxes is the most common tax. You live in a particular community, you pay for the common elements of that community, such as roads, water, transit, public health... All residents pay this fee, whether direct as a home owner would, or indirectly as a renter would via their land lord.

Sales Tax Sales taxes can also b…