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How private equity is changing housing

(www.theatlantic.com)
115 points harambae | 1 comments | 09 Dec 25 17:26 UTC | HN request time: 0.202s | source
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hardtke ◴[09 Dec 25 18:15 UTC] No.46208389[source]▶
One of the issues the article doesn't mention is that these houses are effectively cheaper to purchase for corporate owners. Generally they can borrow money at a lower rate, but the ability of corporate owners to use depreciation on a new purchase to offset profits from previous purchases is more significant. Effectively they are redirecting money that would be paid in taxes into the payments on the new purchase.
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api ◴[09 Dec 25 18:30 UTC] No.46208610[source]▶
Our system is far more regressive than most people realize. The poor pay more for things, don't have access to all kinds of tax breaks and cheap money, and can't afford accountants and shell companies and all the other complicated tricks you can use if you are wealthier.

I wonder: if you added it all up, would a flat tax (which is nominally regressive) actually be more progressive than the regressive taxes we have?

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1. bpt3 ◴[09 Dec 25 21:43 UTC] No.46211114[source]▶
> I wonder: if you added it all up, would a flat tax (which is nominally regressive) actually be more progressive than the regressive taxes we have?

Absolutely not. The US has the most progressive federal tax code in the OECD, mainly because we don't have a VAT like most other countries.

Nearly all of the loopholes you mention are at the federal level, where half of the households in the nation pay <= $0 in income tax.