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b...b...but it's the only solution!!
My tax plan would only increase taxes enough to end deficit. This is how I would tax land.
1. Call T the total spending by local government.
2. Call L the total value of privately owned land measured in dollars as accessed by the existing tax authorities.
3. Call Sx the total value of land owned by person X.
4. Let E be an easing function which we can decide on later.
5. Your taxes on your land would be t = E(Sx, L, T).
The idiotadsADDS nothing to the conversation
So he childishly mocks his opponent like a toddler throwing a tantrum.BlueSardine says
Dan8267 saysThe only solution to this problem is 100% capital gains tax on all real estate
You are indeed missing something important. Capital gains is, by definition, the real amount after currency depreciation of the price a good sells for above the cost basis of the previous purchase of the good. That means that new construction isn't subject to capital gains tax. It also means that if you buy a $200,000 house and add $50,000 of improvements and sell it for $260,000, then you are only taxed $10,000 on the transaction because your cost basis is $250,000.
Dan8267 saysThe idiotadsADDS nothing to the conversation
Does anyone understand you formula?
E(Sx, L, T) = C
C = Communism.
Look, all trolling aside, if you are unable to spell "adds" correctly, you have no reason to even own a computer. This is 3rd grade shit...
BlueSardine saysDan8267 saysThe idiotadsADDS nothing to the conversation
BlueSardine saysIf this is what passes for "masters of science" these days, we might as well sell the whole fucking thing to the chinese...
Well , you again validated my point that those 31000 scientist, unless they are expert, count for nothing.
And if you are criticizing others for grammar, please make sure you are correct, "chinese" should be spelled with a capital "C"
Check. Mate.
Warren Buffet purchased a house somewhere in Laguna Beach for $100,000 decades ago. It was recently put up for sale for $11 million.
Based on your rules, I should be able to buy it for $100,000. It should rent for $40,000 per month. Gosh, I would be rich like hell.
I love you Dan. I'm beginning to love your idea.
If you truly owned a house like you claim, you would know the building can appreciate also, not just the land.
You clearly don't understand my idea, but yes, if it cost a mere $100k or less to build that house decades ago then adjusted for currency debasement it would cost even less to build that house today. So it's the land, not the house, that appreciated. Why should Buffet reek in the profits of the appreciation of land he did not create and did not make better? Land is fundamentally a public and fixed resource. Why should anyone profit at the expense of society for the appreciation of a public resource that no one has a legitimate first owner claim on?
Go on, explain that.
the smartest guy (according to you) on the site.
It's probably swamp land in Florida.
The first piece of land sold, was stolen property, and as per law it still belongs to the original owner.
Even natural resources like oil, gold, copper etc belongs to every human being on the planet, who deserve to be paid every time something is extracted from THEIR LAND.
But we don't live in that kind of world.
So I just go with the tide, buy residential parcels, and hope to get rich one day. I am just a selfish human being, like all normal human beings. You may call me a Capitalist Peeg.
Strategist saysBut we don't live in that kind of world.
Irrelevant. A mere 10 years ago we didn't live in a world with smartphones. A mere 20 years ago, few people had mobile phones. A mere 40 years ago, few people had computers. A mere 60 years ago, few people had televisions. A mere 80 years ago, few people had cars. A mere 100 years ago we had just invented flight.
Have you noticed a pattern? The world changes for the better. If we followed your philosophy, we would never make any progress. "We're not doing that now" is not an argument that we should not start doing that.
If you are going to be greedy, at least be smart and greedy. You're line of thinking would have kept us literally in the Dark Ages where you would be a peasant. The entire reason Europe got out of the Dark Ages and into the Renaissance is because the peasants left alive after the Black Death had enough bargaining power over the owner class to demand higher wages. This created the economic boom that brought about every bit of wealth and opportunity you were born into.
Concentrating wealth, especially wealth obtained by zero-sum games and siphoning from other people's productivity, does not create new wealth and does not create a good economy. I really don't understand why this principle is so difficult for you to accept. You would be financially better off if everything I proposed was implemented.
However I'm not understanding WHY he would do that? Say he spends 3 months building this house to sell, but his earnings during that time were $0. Why wouldn't he just work at McDonald's instead?
Hey Dan, have you figured out yet how a building can appreciate? Since you own so much property, that question should be easy for you to answer
For that nirvana to happen we would need to:
This is where I completely disagree. It's a form of communism
We need more and more technology, discoveries and inventions to better our lives, and only countries that practice capitalism have been able to deliver it.
I believe it was the industrial revolution in England that set off a sustained economic boom.
The social consequences of the plague on society came to be profound. The high mortality rate resulted in a drastic decline in the labour force.[7]. Wages rose for both agricultural and urban workers. The survivors of the Black Death generally had a higher standard of living than before the plague.[8] This was a phenomenon that occurred in both urban and rural areas. The crisis caused by the Black Death led to many changes in the economy, in response to the fall in the population. Because of the labour shortages there was a move from labour intensive farming such as cereal to livestock and increasingly both in industry and agriculture more labour saving devices employed.[9]
Dan - no worries on the trolls, but I'm still not understanding what motivation one would have to build structures to sell.
In your example a guy purchases land for 200k, adds 50k in improvements. And gets 250 back when he sells (the 10k excess price being taxed). I get that.
However I'm not understanding WHY he would do that? Say he spends 3 months building this house to sell, but his earnings during that time were $0. Why wouldn't he just work at McDonald's instead?
Because dan hates his job and realizes other people would not want to work there...
me123 saysHey Dan, have you figured out yet how a building can appreciate? Since you own so much property, that question should be easy for you to answer
Why don't you tell us?
Strategist saysWe need more and more technology, discoveries and inventions to better our lives, and only countries that practice capitalism have been able to deliver it.
Empirically false. The Soviet Union got to both space and the moon first.
Today most things are made in China including all advancements in clean energy.
Where labor is cheap, life is cheap. Where wealth and power is concentrated into the hands of the few, the economy falters. Your inability to see this is due to thorough brainwashing during the Cold War.
Reaching Space first with captured German scientists was probably their only achievement.
Most things are made in China because of cheap labor.
To date, China has contributed very little to scientific progress.
Hey, I agree. Examples of wealth and power concentrated in the hands of the few are kings, dictators, religious wackos, and communists. Not in democracies such as ours.
Why can't you see it?
me123 saysHey Dan, have you figured out yet how a building can appreciate? Since you own so much property, that question should be easy for you to answer
Why don't you tell us?
Dan - I'm read your response but if we can carry your hypothetical to the end I think I would understand better.
So if our builder friend bought the land for 200k and spent 50k on building improvements (again new build- not flipping). If he sold for 3 months later for 260k, and the 10k gain was taxed at 100% (meaning he got his original 250k back) where is our builders profit?
Dan - I'm read your response but if we can carry your hypothetical to the end I think I would understand better.
So if our builder friend bought the land for 200k and spent 50k on building improvements (again new build- not flipping). If he sold for 3 months later for 260k, and the 10k gain was taxed at 100% (meaning he got his original 250k back) where is our builders profit?
In my neighborhood land records show in the 1900s row-houses sold for anywhere between $600 and $1,000
Today the old buildings are assessed for 200-400k. Granted many have been maintained/materials replaced.
That aside however, today I could pull up my antique hardwood floor and sell it for more than the entire house cost 117 years ago. I know this isn't the norm with most materials being replaced every 15-30 years, but allow it to sit long enough it may become an antique.
First, I didn't ask YOU the question, I already know your lack of knowledge of the housing market.
Second, I'll give you and Danny boy a hint, see if you can figure it out. Can you say "foreclosure"?
Strategist saysMost things are made in China because of cheap labor.
Which is a failure of capitalism. The bottom line is that the largest Communist country with the strongest Communist culture is kicking America's ass. This means your assertion is wrong.
Strategist saysTo date, China has contributed very little to scientific progress.
Empirically false. You are simply sticking your head in the sand. China is rapidly owning all STEM and manufacturing infrastructure. It builds entire cities in less time it takes America to build a 9/11 memorial. It is at the forefront of many technological industries.
So, I'll take that even with the hint I gave you, you're still clueless. Why am I not surprised?
Second, political systems are not economic systems or vice versa. Democracy and capitalism have fucking nothing to do with each other.
Your builder's livelihood is not harmed by my tax plan. In fact, his livelihood is improved since people who don't waste money on zero-sum land games have money to hire your builder. The more people have to spend on land due to hoarding, the less they have to spend on builders and all other services.
Wealth is created only by productivity.
He just does not make profit off the appreciation of the land.
So, your assertion is that the land is what increased the value 55% and not the building in 5 months?
Wait, you've been saying all along in this thread that the building doesn't increase in value, only the land. Are you confused?
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