Great counter to the big money real estate speculation lobbies lies about Prop G - the anti-speculation measure on the November ballot. But in this case, the sponsors of Prop. G would be thrilled if it never brings in a penny. That’s because the tax is designed to take the profit out of speculation, to make it much more expensive to buy a building, Ellis the tenants, and resell it quickly. You tax away a lot of the profit, and speculators won’t do the deal. Nobody wants speculators to keep flipping buildings just so the city can bring in tax revenue – which, by the way, won’t make a dent in the affordable housing problem. It’s supposed to be a penalty, a disincentive to do something that most of us think is socially detrimental. You can’t outlaw speculation; this is America, after all, and even the grossest forms of capitalist excess are protected by the Constitution. But you can make it unprofitable, maybe – and that’s why Prop. G exists.
Posted on: Fri, 05 Sep 2014 01:41:24 +0000
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