With Mayor Weinberger putting on a housing summit next month, now is the time to advocate for bold, meaningful policies that redistribute wealth in a way to ensure that nobody has to live unwalled. A wealth tax on millionaires will raise $7.5 million a year for low-income housing projects throughout the city.
Burlington has over 400 for-profit, private, millionaires who own a combined $1.5 billion in property wealth, more than the combined wealth of UVM and the UVM Medical Center. Not only are these 1%ers’ property often taxed at assessed rates much less than their value, but taxing their wealth would help pay for desperately needed low-income housing, without negatively affecting the vast majority of Burlington workers and residents.
The current Housing Trust Fund, funded to the tune of a measly $520,000 a year, can outright fund the construction of only 2 low-income units every year, yet the city needs to build over 5,000 homes for low and moderate-income residents (making less than 80% of the Area Median Income – AMI) to meet our city’s housing needs, yet only 170 homes for those making over 80% AMI. In fact, 2,900 low-income households are paying more than 50% of their income in housing. (Can be found on the city’s Consolidated Housing Plan draft, Page 10.)
Unfortunately, Mayor Weinberger and the City Council seem to think market rate housing, which is affordable to those making 100% AMI, will somehow solve the 5,000 units of low-income housing that these folks need. According to the same Consolidated Housing Plan, 170 folks making between 80%-100% AMI are paying 30% or more on rent, while 0 are paying 50% of their income or more.
If we taxed these millionaires at an additional one half of one percent, .5% every year, the city could raise an additional $7.6 million dollars a year for low-income housing. According to the city’s recent Inclusionary Zoning report, this money could fully fund and build an additional 30 units of truly low-income housing every year. With loans, financing, and low-income tax credits, that number increases even more. As an example, Redstone’s building at 258 North Winooski Ave, with 23 units and 41 bedrooms, along with first-floor retail space, cost roughly $3.5 million dollars. Even with overhead and maintenance, likely 50+ units of permanently and truly affordable low-income housing could be built every year in Burlington, 25x more than is currently built.
Even if we decided to be cheap, and only tax these 400 millionaires at one tenth of one percent, or .1%, we could still raise $1,500,000 a year for housing, 3x more than our Mayor and Council have dedicated to housing over this last decade.
In conclusion: Tax the wealth of the wealthiest 1% of landowners so that everyone can have safe, affordable housing. It’s easy and would actually put some money where our values supposedly are.