Economist andTolerancia Cerocommentator Daniel Mansuy has issued a sharp critique of recent statements made by academic José De Gregorio regarding property taxes in Chile.
The dispute follows remarks by De Gregorio, a professor at the University of Chile, who suggested that seniors facing high property tax bills should consider downsizing to smaller homes to reduce their expenses.
“What should a senior do when they are paying high property taxes? Move house,” De Bogrego stated, arguing that smaller homes would allow owners to save more money.
The risk of urban segregation
Mansuy flatly rejected this stance, pointing out that the logic behind the tax is based on property assessments rather than the size of the home.
“It isn't fair to tell people, 'just leave,'” Mansuy declared. The economist explained that rising property taxes are a result of increasing neighborhood property values rather than voluntary decisions made by homeowners.
According to the commentator, the current system penalizes those who purchased homes in middle-class neighborhoods that have seen their market value surge over the decades due to external factors.
“By indexing property taxes to assessments, what we are doing is segregating the city, telling people they no longer belong to the social class that currently lives in that neighborhood,” Mansuy warned.
The economist argued that the State ultimately forces the displacement of long-term residents, creating social segregation issues that public policy must later attempt to rectify.
Finally, Mansuy criticized the current tax structure for treating family homeowners as if they were “real estate speculators” at the time of their initial purchase.
“It isn't fair to tell people who have paid taxes all their lives and paid off their homes with the appropriate interest: 'leave, because your social class no longer belongs in this neighborhood,'” he concluded.
