General Discussion
In reply to the discussion: Why not outlaw landlordism? [View all]1. In many states, the state income and sales tax are the primary revenue generators with property taxes left to the counties and municipalities.
2. Even for the well-to-do, income tax collections dry up in depressions/recessions because they do not earn capital gains. Take a look at the drop in cap gains tax receipts caused by the dot bomb bust in 2001 and the 2008 collapse.
3. People that are renting do pay property taxes indirectly. All landlords pass through their property tax costs to the renters.
4. Banks do prefer to work with borrowers if they can see a way for the borrower to catch up and become current over a reasonable period. The real estate bust was so spectacular, the little or no down mortgages so prevalent, and the loss of equity so great that the banks and borrowers had little to work with in reaching plans to work out the loans.