patrick.net

anon_0c821 says

Wrong - the renters IN ALL CASES only pay for use of the dwelling.

So what does the landlord do with the dollars he collects as the rent payment?

anon_ad0c3 says

anon_0c821 says

Wrong - the renters IN ALL CASES only pay for use of the dwelling.

So what does the landlord do with the dollars he collects as the rent payment?

You guys are just arguing semantics here.

Strategist says

Yes the renters still pay for property taxes. How exactly it's paid is just a technicality.

Right! It's technically correct to say that landlords pay the property tax, but they pay it with money they get from the tenants, so the tenants are in effect paying the property tax if not personally paying it to the government.

I will wait for when we discuss this again in a few months to comment. I know many renters are still not satisfied with the consensus.

anon_670d2 says

Let me ask you real estate experts another question - say a landlord has many properties which are rented out, plus some other investment income. What happens if the landlord chooses to pay the property tax rolls using the income from the investments? Did the renters pay for property taxes in this case?

Let's ask another nonsense question while we are at it - Is the moon actually made of green cheese? It is a nonsense question. If the properties are in an LLC then it's all separate and accounted for in the LLC. If you are not in an LLC all the money is just income and expenses no matter what the source or destination. It all goes into and out of a bank account.

anon_670d2 says

What if a landlord tries to set his rental price based upon the fact that his mortgage and interest payments are very high. What will happen to this landlord if comparable properties are only fetching much less in rent?

What if the moon were actually made of green cheese?

The tenant is paying the taxes no matter what silly semantic games you want to play.

Patrick says

Right! It's technically correct to say that landlords pay the property tax, but they pay it with money they get from the tenants, so the tenants are in effect paying the property tax if not personally paying it to the government.

It is semantics, but it is an important distinction and a fundamental law of economics--price is set by supply and demand and is independent of the cost of the good or service except in the very long run (which we never reach).

anonymous says

Tax overhaul deal sweetens for working class

Here's how to sweeten the deal. Every person saves $1 before anyone saves $2. Every person saves $100 before anyone saves $101. Simply lower everybody's taxes the exact same amount until their taxes reach zero. Now that would be tax reform.

Better yet, keep taxes where they are and give everyone an equal tax-free income based on what's available from spending cuts.

anon_1d1b8 says

Here's how to sweeten the deal. Every person saves $1 before anyone saves $2. Every person saves $100 before anyone saves $101. Simply lower everybody's taxes the exact same amount until their taxes reach zero. Now that would be tax reform.

I’m guessing you flunked math.

Higher earners would pay hardly anything under your system, even if everyone else’s taxes under $200k are reduced to zero.

Quigley says

I’m guessing you flunked math.

Higher earners would pay hardly anything under your system, even if everyone else’s taxes under $200k are reduced to zero.

Nope--everyone starts at today's level of taxes and any reductions are made equally in dollar terms. It would be much better than the current tax plan.

anon_8f378 says

Patrick says

Right! It's technically correct to say that landlords pay the property tax, but they pay it with money they get from the tenants, so the tenants are in effect paying the property tax if not personally paying it to the government.

It is semantics, but it is an important distinction and a fundamental law of economics--price is set by supply and demand and is independent of the cost of the good or service except in the very long run (which we never reach).

Supply and demand? WTF does that have to do with tenets paying rent which is used for paying taxes.

bob2356 says

Supply and demand? WTF does that have to do with tenets paying rent which is used for paying taxes.

The point is that rent is independent of the landlord's cost. Like I said--semantics.

anon_8f378 says

Nope--everyone starts at today's level of taxes and any reductions are made equally in dollar terms. It would be much better than the current tax plan.

Here's who benefits in the new plan:


https://www.marketwatch.com/story/here-are-the-winners-and-losers-of-the-final-version-of-the-republican-tax-bill-2017-12-18

In practice tenants pay for all expenses and more. Landlord don’t get into this business to lose money. They can sell the property at anytime, unlike most tenants who are stuck renting due to credit, qualification, etc.