• OurToothbrush@lemmy.ml
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    1 year ago

    The diagram shows how price goes up and less consumers are able to access goods when you raise taxes within a market economy.

    It is also an econ 101 level oversimplification, but it is arguing against your claims.

    • explodicle@local106.com
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      1 year ago

      No it doesn’t. As you can see, market price is where the supply line meets the demand line. Since supply is perfectly inelastic (vertical), a higher tax rate cuts into producer surplus without changing where supply and demand meet.

      • OurToothbrush@lemmy.ml
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        1 year ago

        That isnt true, housing supply isn’t inelastic. Houses decay, new homes are built, and landlords remove homes from the market to artificially constrain supply.

        Also that isnt what the graph illustrates.

        • J Lou@mastodon.social
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          1 year ago

          LVT taxes the unimproved value of land, so we are talking about land itself not what is built on top of it such as housing. Since land is a product of nature, the supply of it is perfectly inelastic

          • OurToothbrush@lemmy.ml
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            1 year ago

            People live in housing though, which is distinct from land, and the thing they’re claiming is static