From: stephen@sprunk.org   
      
   On 31-Mar-15 19:01, hancock4@bbs.cpcn.com wrote:   
   > Stephen Sprunk wrote:   
   >> It's not a matter of tenants caring.  If every landlord's land   
   >> values (and thus taxes) go up 3%/yr due to general inflation, then   
   >> they will all increase their rents at least 3%/yr so they don't   
   >> lose money.  The tenants either pay the higher rents or become   
   >> homeless.   
   >   
   > Not exactly.  Individual situations vary greatly.   
   >   
   > We must consider the demand curve.  Just because taxes go up does not   
   > mean a particular neighborhood is more desirable to live in.  Indeed,   
   > a neighborhood could be declining in desirability and taxes go up.   
      
   Inflation doesn't care about such things.  Prices go up every year at   
   the supermarket, too, even if the food isn't any more desirable.  This   
   is not unique to property taxes.   
      
   > (Welcome to Philadelphia).  So, if rents exceed demand, people will   
   > go elsewhere.   
      
   There is no "elsewhere" in the case of inflation; rents will go up   
   _everywhere_.   
      
   >> If politicians raise the _rate_ in a particular jurisdiction, then   
   >> every rent in that area will go up faster than inflation.  Some of   
   >> the tenants will move to other jurisdictions, though, so rents will   
   >> go back down, which means property values will go down, and the   
   >> total tax collected may be more _or less_ than before the rate   
   >> increase.   
   >   
   > Once again, property values do not necessarily coorelate to property   
   > taxes.   
      
   I think you're deliberately missing the point; either that, or you're   
   simply choosing not to read what Adam and I have written.   
      
   S   
      
   --   
   Stephen Sprunk         "God does not play dice."  --Albert Einstein   
   CCIE #3723         "God is an inveterate gambler, and He throws the   
   K5SSS        dice at every possible opportunity." --Stephen Hawking   
      
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