House of Paine

lot plot

here's the baron again .....


pushin

his grand scheme
for  the republic

call it 
  the simple lot tax plot 


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pinky

why won't the  fools listen to me

just look at the key  numbers
                   moving apart....


on the one hand
home 
  mortgage 
and property tax  payments 

 (net of  income  tax deductions )

are goin up up up

while household monthly rental rates  
are tracking at best "no where"

and still
    the lot value  bubble continues apace 

if there was  ever a case 
to be made
    for 
house lot prices
                 spiraling
                   out of control...

but
is there
       a  catastrophe brewing ?

where tulip bulb like

nearly all at once 

house  lot  schein- werts

will 
"re ground "
           themselves
         in 
    the  underlying 
                   trends 
                                 of
                                household income   
 


but no sah

dis be not dee end  bro .....

 your baron here

as you well know pink

if he's anything 
        is forever 
                       real 
                 

no silly  
           chicken little  
                       me 

the facts about  the ground ahead ?

 house 
lot prices 
won't pop and crash
no madam 
no way
cause uncle
and his bank masters  
won't let em pop
               and crash
          

  you dig me ladeee oh   ?

 

not they can't pop

just   they won't crash 
 

nope at worsed
  we're in for a very long and
                             slow 
blood and sweat
filled  swoon 

indeed indeed

---------------------------

how can we end this cyclic
                       crapola?


its all about 

 whats in a location to begin with 


and thats 
just  pure externality 

pure  circumstantially created value 

that doesn't induce any real increase or decrease

how could it 
its unique 
its a spot 

and 
thats why 
clumping gains
          exist 


when close together spots
get built up
they can  
spill value on each other  

thats why
  so many development projects
are  a  local conspiracy 
                     of some sort

or at least 
if not a conspiracy
like zoning codes and boards

they are 
at least a game 

a game 
 conducted inside  
  a smokey  smart guy room
inside 
 a dome of   indolence 
                       and  ignorance 

why?

cause 
the  winners 
 bam-booozle the losers 



---------------------

my answerto all this

is tax away lot values
to near zero
and keep em there 

a massive 
federal  land tax
 ala old henry george  

proceeds to be returned 
to the locaities 
with 
 some  hocus pocus type
       equalization redistribution formula


how we get there?


we use fanny mae etc 

have the feds
 grab up all the house  mortgages 
then convert the payments 
that cover lot value 
 to a  fed lot tax and 
forgive that part of the principle 

trust me on the details...

okay what about 

 folks with no mortgage 
 or too small a mortgage?

fine 

will create an  account equal to 
the pv of their lost value 
useable to pay their taxes in purpetuity
transferable at the sale of the house 


i'll make it so

the thrifty too high equity
   fuck ball
not only
will he end up thinkin'
   he's even

shit.. 

as my hero sez 
in his girl friday

                 he'll  end up thinkin 
                 
                  " he's  skipped   a grade "


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