Wealth Redistribution, The Renter’s Credit
One of the provisions in the DFL’s many tax increase bills is to increase the renter’s credit. The idea behind these is that renters get refunded by the state for a portion of the property taxes on the property they live on which, by the way, the landlord or property owners have to pay, to their prospective Counties.
I’m in property management, and happen to have to deal with these. And, frankly in my case, most of the residents we send these forms to never even use them, or can’t because they make too much money. So all the time and resources we put into creating them exactly how the State wants them done is wasted and for nothing.
Get the point yet? Yep, it is wealth redistribution. Property owners pay the property taxes, rightly so. But for some reason the state says that renters who make under a certain amount of money should get a refund, for taxes they didn’t really pay.
And now the DFL wants to increase the level so that the state will basically subsidize 25% of someone’s rent. That’s all this really is, is a subsidy. It is merely wealth redistribution. It is vote buying.
On the other side, with the additional relief making rental property more affordable to tennants, landlords should be able to up the rent. I’m sure that’s not what those behind this has in mind, but it only follows that this is a real possibility.
Unintended consequences…
You can look at it that way, but the people don’t get this refund until August or later of the following year. there are so many more dark secrets to this garbage plan that you’d not be joking around like that.
If you have a roommate for two months that you let stay out of the goodness of your heart, rent free. The State of Minnesota dictates that landlords must give that roommate a credit form for those 2 months for their equal share (despite not actually paying it). That non-paying roommate ends up getting a refund eventhough they paid nothing.
In a way, they take money out of one paying residents’ hands and give it to someone who isn’t paying a thin dime.
One more little wrinkle is that if you die before filing for this rent credit, the state stiffs your estate and keeps the money. Yes, this is income redistribution / welfare, not really tax policy.