Biden Proposes 5% Rent Control Cap

cawacko

cawacko

Well-known member
It’s election season so that means politicians do what they do best, propose horrible economic ideas under the guise of looking like they are doing something “for the people”. This is one of them.

Rent control does one thing really well, reduce incentives to build and increase prices. Because he’s trying to tie it to corporate landlords it could play well to those who don’t understand how markets work.

The only saving grace is it will probably not become legislation.

https://twitter.com/x/status/1812918420423254480
 
cawacko said:
It’s election season so that means politicians do what they do best, propose horrible economic ideas under the guise of looking like they are doing something “for the people”. This is one of them.

Rent control does one thing really well, reduce incentives to build and increase prices. Because he’s trying to tie it to corporate landlords it could play well to those who don’t understand how markets work.

The only saving grace is it will probably not become legislation.
Click to expand...
Certainly an election year promise, currently it wouldn’t stand a chance in Congress, but you can not say Biden is the only politician to make populist promises during the campaign season

And if I am not mistaken, admitting I only know about it from what I read in the AP, it would only be a two year program, and effects landlords who only own more than fifty properties. It also doesn’t include new construction and is levied via reducing tax benefits for those that violate the five percent

Interesting given that many of those larger landlords received direct government aid during Covid and now that they are benefitting from a tight market are complaining on temporary limits on rents
 
zymurgy said:
"corporate landlords"

what the fuck does this even mean? You have to be the biggest moron to rent property and not have it under an LLC.

pretty much all landlords are corporations for this reason
Click to expand...
Those that own fifty or more properties, not your mom and pop enterprises
 
cawacko said:
It’s election season so that means politicians do what they do best, propose horrible economic ideas under the guise of looking like they are doing something “for the people”. This is one of them.

Rent control does one thing really well, reduce incentives to build and increase prices. Because he’s trying to tie it to corporate landlords it could play well to those who don’t understand how markets work.

The only saving grace is it will probably not become legislation.

https://twitter.com/x/status/1812918420423254480
Click to expand...
Wow. The desperation is palpable now. I foresee some kind of Hail Mary proposal in the near future.
Petrol vouchers and food stamps for every family making $100,00 or less?
 
zymurgy said:
you are asking how tax policy is different than controlling market prices?

stop voting. you are the problem. DUMB
Click to expand...
Not at all, you asked why the Government should be involved in rent and I returned asking why the Government should be given special tax breaks to landlords, of which you obviously have no answer
 
anonymoose said:
Wow. The desperation is palpable now. I foresee some kind of Hail Mary proposal in the near future.
Petrol vouchers and food stamps for every family making $100,00 or less?
Click to expand...
Typical MAGA exaggeration, obvious you know or understand little if anything in the proposal but yet are quick to generalize it as some kind of hand out welfare
 
archives said:
Not at all, you asked why the Government should be involved in rent and I returned asking why the Government should be given special tax breaks to landlords, of which you obviously have no answer
Click to expand...
I asked how it is even legal for the Federal Government to involve itself in price controls

and you derp derped right along - because like I said - you being this dumb is why democracy is not good
 
zymurgy said:
I asked how it is even legal for the Federal Government to involve itself in price controls

and you derp derped right along - because like I said - you being this dumb is why democracy is not good
Click to expand...
No you didn’t, you asked how it wasn’t “way out of bounds for the United States Government to control? And as I replied, as the same way they give landlords tax breaks

Seems you aren’t aware that this so called control is done via tax credits
 
archives said:
Certainly an election year promise, currently it wouldn’t stand a chance in Congress, but you can not say Biden is the only politician to make populist promises during the campaign season

And if I am not mistaken, admitting I only know about it from what I read in the AP, it would only be a two year program, and effects landlords who only own more than fifty properties. It also doesn’t include new construction and is levied via reducing tax benefits for those that violate the five percent

Interesting given that many of those larger landlords received direct government aid during Covid and now that they are benefitting from a tight market are complaining on temporary limits on rents
Click to expand...
Reread my first paragraph. I didn't say this was unique to Biden. But real estate is my world and that's why I post about it and this proposal is being talked about in real estate circles today.

There's a lot written about it, Jay Parsons tweet thread (post #2) has some pretty good insight into why this is a bad proposal.
 
You must log in or register to reply here.
Back
Top