Comment by zhivota
2 days ago
The problem is the wealthy people can still buy and own the land without being residents. These billionaires "moved" to Austin or Florida or wherever, but they still own the same multi-million dollar mansions in the bay area or LA or wherever. They just spend less time in them.
The Chinese model fixes this problem, albeit with a heavy hand. The state's power can never be subordinated, billionaires are checked by the state and strict capital controls stop them from having a backup bunker of gold bars outside China. I think they also limit dual citizenship to some extent. Heavy handed though it may be, for 99% of Americans you would have 0 negative impact, but it would align incentives better. With a cooperative tax policy between states there would be less of a race to the bottom and tax-integrity could be maintained. A home would count as a residence regardless of whether you "reside" there. Maybe then we would promote both nationalism and state/community integration. Having to bear the full brunt of state residency tax ramifications could enforce less empty homes and more investment in states they reside.
I understand why LVT is compelling. Wealthy people can subordinate or borrow state capacity and monopoly on violence, while driving legislation. There needs to be some check on power.
In your example, you are 100% correct. It doesn't stop at Austin; we have a transnational class of people who no longer care about the nation itself.