What does the brilliant, former Roman rebel leader have in mind for America?
Answer: He wants the government to help pay people’s rent.
Is there any product or service that liberals don’t think should be funded by government?
So far, none come to mind. However, they seem to become stingy when it comes to funding the military.
Cory Booker’s Plan to Help Tenants Pay Rent
Senator Booker’s plan calls for a tax credit to be given to renters that would ensure that they would not spend more than 30% of their income on rent.
The New York Times reported, “At the center of Mr. Booker’s proposal is the renter’s tax credit, which would cover the difference between 30 percent of a person’s income and the fair-market rent in his or her neighborhood. There would not be an income cap limiting who could qualify, according to the campaign, which said the median participating family would receive $4,800 per year.”
His plan would cost $134 billion annually.
How is he going to pay for it?
Answer: Get rid of the Trump tax cuts.
Shocker! The Democratic candidates want to tax the rich and repeal the Trump tax cuts to pay for their utopian ideas.
Booker said, “Access to safe, affordable housing can be transformative in the trajectory of people’s lives.”
Kamala Harris and Elizabeth Warren have plans of their own to help renters pay their rent. Harris wants to offer a tax credit to those making less than $125,000 and Warren wants to invest more in affordable housing.
One of the reasons that rent is so high in cities is due to liberal policies.
A perfect example of this comes to us from San Francisco, California.
In 1994, San Francisco passed a rent-control ordinance that prohibited landlords from raising rent above half the rate of inflation. That worked out to about 1% a year.
What happened next was predictable: Supply of rental units declined.
Landlords began moving away from rental properties and started selling their apartments as condos. Some also bulldozed their buildings and built new apartments, because the law only applied to existing units.
Stanford economist Rebecca Diamond estimates that rent control reduced the supply of rental properties by 25%.
This policy had the effect of harming low-income people, the very people the liberal policies were supposed to help.
Rent control is in effect in large liberal cities, including New York City, Washington, D.C., Los Angeles and San Francisco.
Despite rent control, overall rents are actually higher in those cities — much higher.
New York City and San Francisco are the most expensive cities to rent in. In San Francisco, the average rental cost is $3,500 a month. In Manhattan, the average price of an apartment is $3,650 a month.
Liberal California and New York have 19 of the top 20 most expensive towns/cities in the country.
Rent control and land use restrictions play a significant role in driving up the prices of rental properties. Before Cory Booker starts handing out tax credits to help people pay their rent, cities should get rid of their liberal housing policies. That would make rent cheaper for low-income people.
Liberal policies hurt more than they help. The road to hell is paved with good intentions.