the corner office

a blog, by Colin Pretorius

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Two quotes

Russ Roberts on the ideal of home ownership:

The phrase that gets used all the time is "affordable housing." But affordable housing isn't what gets subsidized. What gets subsidized is affordable home ownership. People who rent have housing. They're not homeless. Why should there be a policy goal of getting everyone to borrow money? So more can paint the walls the color they want and have the thrill of mowing their own lawn?

There are a number of ways in which home ownership can be problematic for society - lack of labour mobility is a biggie, feeding unemployment, keeps wages lower, etc etc.

Steve Landsburg on capital gains tax:

This is wrong, wrong, wrong, wrong, wrong, wrong, wrong, and you can't begin to think clearly about tax policy if you don’t understand why. Even if capital gains taxes were capped at one percent, income subject to those taxes would be taxed at a higher rate than straight compensation. That's because capital gains taxes (like all other taxes on capital income) are surtaxes, assessed over and above the tax on compensation

Another way in which capital gains tax is unfair is that it's a double tax: asset prices are based on expected future after-tax income. The 'profit' you get on selling a capital asset is just someone paying you for the extra after-tax income they're expecting to receive in future as a result of your owning that asset.

{2010.09.15 - 18:20}


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