One thing that is as clear as a spring blue sky day is that there are wolves lurking amongst the sheep on both sides of the most pertinent issues in America today. With all that has happened it’s hard to deny the rogues in the public safety business. It’s also hard to deny those, who would fundamentally change America’s way of life, mingling blissfully amongst the progressives.
United Renter’s for Justice is an organization pushing locally for rent control and tenant’s right-of-first refusal should their landlord take their apartment building to market. Members think along the lines that one individual owning more than one property is some form of injustice. (Not sure how that adds up for housing those who are not in a position to house themselves).
The new angle on leveling the American playing field isn’t to be progressive about income taxes, nor to understand how to leverage opportunity, but seems now to be focused on shifting capital. The reasoning appears to be no different than that of many revolutionary governments of yesteryear: “We don’t think you acquired your capital in an appropriate fashion, so we will take it, and redistribute it ‘fairly’.”
These folks need to read history, as there is yet to be a successful outcome from such reasoning.
The capital gains tax proposal shimmers a bit from this implied sense of justice-through-acquisition. Or, we have the power to take so we will. This type of authoritarian strong arming is not very popular in a country built by people who fled from governance by arbitrary taking.
But maybe there is some truth to ponder here, that the increased value of some assets are due, in some portion, to a wider public than simply those who own the assets. It is part of the pro-tenant people’s argument. Tenants participate in local civic activities. These activities contribute to the desirability of the neighborhood, which in turn increases demand for property, putting upward pressure on property prices. Despite their lack of direct ownership in real estate, do renters participate in some community work which is left unaccounted for?
That is an excellent question. And if the answer is yes, where in other capital ownership has there been public involvement that could be offset when an owner decides to internalize profits and sell their asset?