“Mansion tax” to be introduced by Grosso in DC for homes worth over $1million

[Anonymous]

Anonymous wrote:It's a reasonable idea, and it could accomplish some good things.

The simple fact is, if you can afford a $1,000,000 home, you can also afford a $50,000 tax on it. This isn't going to be a make-or-break proposition for buyers of million+ dollar homes. It's even less than the standard real estate commission!!!

And it would yield millions of dollars every year that would improve the lives of the people who are being increasingly pushed out of the neighborhoods where they used to live.

Only cruel, racists would be against this kind of thing.

There’s lots of cheaper housing in PG county. What’s wrong with people taking advantage of that as DC housing prices rise? Why should DC go out of its way to keep residents who disproportionately require a high level of social services? I dont want to see anyone pushed out, but I wouldn’t raise taxes to provide more benefits as an incentive to remain in the District, either.

[Anonymous]

Anonymous wrote:Maybe we should simply remove people from their homes once the home appraised for over 1M and put them in camps.

I'm surprised no Dem has proposed that yet. Makes a lot of sense, plus you can send some deserving people to live in the vacated homes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's a reasonable idea, and it could accomplish some good things.

The simple fact is, if you can afford a $1,000,000 home, you can also afford a $50,000 tax on it. This isn't going to be a make-or-break proposition for buyers of million+ dollar homes. It's even less than the standard real estate commission!!!

And it would yield millions of dollars every year that would improve the lives of the people who are being increasingly pushed out of the neighborhoods where they used to live.

Only cruel, racists would be against this kind of thing.

There’s lots of cheaper housing in PG county. What’s wrong with people taking advantage of that as DC housing prices rise? Why should DC go out of its way to keep residents who disproportionately require a high level of social services? I dont want to see anyone pushed out, but I wouldn’t raise taxes to provide more benefits as an incentive to remain in the District, either.

There are incentive buyer programs for teachers, first responders etc I believe, as well as other incentives and funding sources for low income and first time homesbuyers. I agree with you that living where cheaper housing is is a choice a LOT of people make! Last, the subsidy now in DC for section 8 is well over market value, There are LOTS of freebies already.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My house probably appraises for over a million now, although I paid about half that.

I'd support this. It's only an incremental tax and there's so much more we could be doing to make DC better.

Absolutely, and I own more than one home in DC appraised at over a million.

MoCo already has this. And yes, if your home is right at a million, it's incremental which isn't a big deal. If your home is $2 mn, well, you can afford to pay more taxes.

Well, its not like these people bought their houses for $2 million. They may have paid $500K 30 years ago.

Not even that much. My neighbors in my upper NW neighborhood have owned their home for a little longer than 30 years, they paid $88k for it. It’s one half of a side by side and is in the $1.2m area now.

[Anonymous]

OP here. So it looks like he's updated his proposal to focus on homes $1.5m+ and also 5m+. I'm a little better with this, although it seems that with inflation, this will need to be updated in 10 years when 1.5m is no longer a "mansion."

https://dc.urbanturf.com/articles/blog/more-details-emerge-on-proposed-dc-mansion-tax/15396

[Anonymous]

DC Transdr taxes are already much higher than MD and VA. Services are lacking in comparison. This is a terrible idea!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: A $1 million dollar home is expensive for DC. Even if you stretched to buy it and are house poor. You're still way rich compared to the 25% of DC residents are living below the poverty line.

Arent you already susbsidizing many of them with the taxes they dont pay?

People living under the poverty line still pay taxes. (An even greater proportion of their earnings than those who live in million-dollar houses.)

Seriously, you actually think people under the poverty line pay a higher percentage of their income in taxes than the wealthy? How about some facts:
-- If you are under federal poverty level you pay about $0 in federal income taxes
-- You do pay FICA taxes of 7.5% of income but
-- That is offset (partially) by the earned income tax credit
-- In DC the poor pay little in state tax if anything.
-- The poor are more effected by sales tax, which in DC is about 6% of spending on taxable items.

So how does a total tax obligation that is clearly under 10% of income (and frankly for many close to zero after the EITC), become a higher percentage.????

I'm curious about this as well. Also, factor in all the subsidies and benefits your get at that income level

Only if you factor in the subsidies and benefits you get at all income levels. Mortgage interest deductions, pre-tax transit and retirement contributions, etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: A $1 million dollar home is expensive for DC. Even if you stretched to buy it and are house poor. You're still way rich compared to the 25% of DC residents are living below the poverty line.

Arent you already susbsidizing many of them with the taxes they dont pay?

People living under the poverty line still pay taxes. (An even greater proportion of their earnings than those who live in million-dollar houses.)

Seriously, you actually think people under the poverty line pay a higher percentage of their income in taxes than the wealthy? How about some facts:
-- If you are under federal poverty level you pay about $0 in federal income taxes
-- You do pay FICA taxes of 7.5% of income but
-- That is offset (partially) by the earned income tax credit
-- In DC the poor pay little in state tax if anything.
-- The poor are more effected by sales tax, which in DC is about 6% of spending on taxable items.

So how does a total tax obligation that is clearly under 10% of income (and frankly for many close to zero after the EITC), become a higher percentage.????

I'm curious about this as well. Also, factor in all the subsidies and benefits your get at that income level

Only if you factor in the subsidies and benefits you get at all income levels. Mortgage interest deductions, pre-tax transit and retirement contributions, etc.

So everyone gets subsidies, but who actually pays taxes? To provide all this stuff?

[Anonymous]

Anonymous wrote:OP here. So it looks like he's updated his proposal to focus on homes $1.5m+ and also 5m+. I'm a little better with this, although it seems that with inflation, this will need to be updated in 10 years when 1.5m is no longer a "mansion."

https://dc.urbanturf.com/articles/blog/more-details-emerge-on-proposed-dc-mansion-tax/15396

In other words, OP, as long as it doesn't cost you, it's fine. You want stuff for free but don't want to have to pay into the system to get it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's a reasonable idea, and it could accomplish some good things.

The simple fact is, if you can afford a $1,000,000 home, you can also afford a $50,000 tax on it. This isn't going to be a make-or-break proposition for buyers of million+ dollar homes. It's even less than the standard real estate commission!!!

And it would yield millions of dollars every year that would improve the lives of the people who are being increasingly pushed out of the neighborhoods where they used to live.

Only cruel, racists would be against this kind of thing.

We make $150K per year. How could we afford $50k in taxes? T

It won't affect you in the least, because you won't be purchasing a million dollar plus home with an income of $150k. So it doesn't even apply to you.

You have absolutely no idea what you are talking about. The value of a home someone has live in for 10+ years bears no relationship whatsoever to their income. This is why people have to move when the taxes on their homes keep rising while their income is fixed.

[Anonymous]

Anonymous wrote:It's a reasonable idea, and it could accomplish some good things.

The simple fact is, if you can afford a $1,000,000 home, you can also afford a $50,000 tax on it. This isn't going to be a make-or-break proposition for buyers of million+ dollar homes. It's even less than the standard real estate commission!!!

And it would yield millions of dollars every year that would improve the lives of the people who are being increasingly pushed out of the neighborhoods where they used to live.

Only cruel, racists would be against this kind of thing.

So, you think everyone who lives in a house worth $1mil. today actually paid $1mil for it whenever they bought it?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's a reasonable idea, and it could accomplish some good things.

The simple fact is, if you can afford a $1,000,000 home, you can also afford a $50,000 tax on it. This isn't going to be a make-or-break proposition for buyers of million+ dollar homes. It's even less than the standard real estate commission!!!

And it would yield millions of dollars every year that would improve the lives of the people who are being increasingly pushed out of the neighborhoods where they used to live.

Only cruel, racists would be against this kind of thing.

We make $150K per year. How could we afford $50k in taxes? T

It won't affect you in the least, because you won't be purchasing a million dollar plus home with an income of $150k. So it doesn't even apply to you.

You have absolutely no idea what you are talking about. The value of a home someone has live in for 10+ years bears no relationship whatsoever to their income. This is why people have to move when the taxes on their homes keep rising while their income is fixed.

This, exactly. We could never afford to buy our house now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. So it looks like he's updated his proposal to focus on homes $1.5m+ and also 5m+. I'm a little better with this, although it seems that with inflation, this will need to be updated in 10 years when 1.5m is no longer a "mansion."

https://dc.urbanturf.com/articles/blog/more-details-emerge-on-proposed-dc-mansion-tax/15396

In other words, OP, as long as it doesn't cost you, it's fine. You want stuff for free but don't want to have to pay into the system to get it.

This.

[Anonymous]

Anonymous wrote:Can someone please please tell me where I can buy a mansion in DC for $1 million??

Haha, yes please tell me where I can get one of these

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here. So it looks like he's updated his proposal to focus on homes $1.5m+ and also 5m+. I'm a little better with this, although it seems that with inflation, this will need to be updated in 10 years when 1.5m is no longer a "mansion."

https://dc.urbanturf.com/articles/blog/more-details-emerge-on-proposed-dc-mansion-tax/15396

In other words, OP, as long as it doesn't cost you, it's fine. You want stuff for free but don't want to have to pay into the system to get it.

This.

LOL. "I'M barely getting by with my 1 million dollar home, but HE is rich with his 1.5 million dollar home."