A Little Loss Is Better Than All: Rents and Taxes By: David Rader II on March 01, 2009 @ 12:56 PM
The economy is doing bad is some places. Some places not so bad. Some places are actually gaining business, contrary to steered popular belief by big media companies. This is a time for hope, not fear.
I have seen some companies just barely getting by in this economic trouble. They fight and they fight and they win. Often times it has been directly due to the fact that land owners have increased their rents.
Increasing rent makes very little sense from our current stand, because if land owners are losing businesses who rent from them due to the economy, they should not raise rent because their remaining businesses are likely to be hurt by the economy too. If they can't afford the rent, they'll simply move or close up.
A community staple to my hometown of Dundalk, Maryland recently moved because of rent increases. At my current place of employment recently had rent increased. They are many vacant shops near by and the pricing is ridiculous. It seems obvious to just lower the rent, even if there are still losses, at least the losses wont be as great. I think the owners of that land are either blinded by their riches or are stupid to have let the vacancies stay for so long (in some cases over 2 years, perhaps more than 3). Any fool knows a 20% loss is better than a 100% loss.
I can understand these land owners may say, well we need more money, because we're getting less. Scaring away potential customers and renters is NOT The right way to get business. Sometimes you have to cut your losses, but at the minimum.
Land owners actually should have an incentive to offer lower taxes, besides the sheer logically "a little loss is better than all" standpoint; That incentive is their own property taxes should be lower this year than any other year, because their property is temporarily worth less. SO PASS THAT SAVINGS ON TO THE CUSTOMER!
Not that I have much experience with the government, but it seems it would be very helpful if the government would offer something like a tax break on commercial property.
#1Rudy March 05, 2009 @ 12:42 PM
Well, Obama still hasn't lower our taxes. How are we suppose to spend if there's no disposable income left?
It's going to take a lot of smacking on the back of the head to make everyone wake up and smell the coffee. We need to stay competitive!
#2Dave March 22, 2009 @ 12:26 AM
I think you're right Rudy, that We will need some disposable income to help get this party restarted, the American party that is.
I do believe it really is an Earth economy now though, but even more importantly, and Earth community. What that means is that not only must we recognize the role other economies can play with ours, but what role morally each country should be playing with another. I think people have forgotten the notion of morality. Seriously, people need to watch Pinocchio.
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