Bricks, Taxes and Spending
Solutions for Housing Equity across Levels of Government
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This report addresses housing inequities through a series of analytical chapters and case studies. The cross-country chapters examine the effects of the COVID-19 pandemic on housing demand, develop a proposal for a green land value tax, evaluate the dynamics between fiscal autonomy and housing supply responsiveness, as well as explore the drivers of inter-regional migration. The case studies unravel the changes of Korea's progressive national property tax and a programme to address regional imbalances, assess the impact of the US property tax system on housing, dive into Norway's property taxation in relation to inequality, as well as survey Belgium's approaches to housing policy. With a blend of empirical data and critical analysis, the report underscores the pressing need for comprehensive strategies in addressing housing inequities. It also offers insights for policymakers and scholars, highlighting the complex balance between national and local housing policies.
The Korean national property tax: History, controversies and future directions
Korea’s National Property Tax (NPT), characterised by its redistributive nature, is unique in the OECD. Originating from a history of progressive property taxation in the 1970s, the NPT was introduced in 2005 to refine the progressive local property tax system, by absorbing its upper brackets at a higher level of government. While aiming explicitly at redistribution, it has been controversial. This paper argues that given Korea’s weak capital gains tax on housing, a progressive property tax, like the NPT, is sensible, a position echoed by recent OECD studies. However, challenges arise due to its use for housing price stabilisation and its limited role as a wealth tax. Maintaining the NPT at a moderate level is recommended.
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