>As for rent, the property owners just pass the cost on to the tenants by increasing rent
Rents would either remain unchanged or go down.
I dont magic myself a raise because income tax goes up. It works the same for landlords. If supply and demand remains unchanged, prices remain unchanged.
The only change I could forsee to affect either is previously empty properties being put up for rent in order to cover tax payments to turn property liabilities back into property assets. This would increase supply.
>Plus, if the wealthy are renting out the majority of the properties, then they can make up for tax increases by raising rents
They'd really love for that to be how it works and sometimes they pretend it is.
Rents would either remain unchanged or go down.
I dont magic myself a raise because income tax goes up. It works the same for landlords. If supply and demand remains unchanged, prices remain unchanged.
The only change I could forsee to affect either is previously empty properties being put up for rent in order to cover tax payments to turn property liabilities back into property assets. This would increase supply.
>Plus, if the wealthy are renting out the majority of the properties, then they can make up for tax increases by raising rents
They'd really love for that to be how it works and sometimes they pretend it is.