Property Taxes in Cairo
Oct. 3rd, 2025 09:36 amThere was an article in in Reason about housing and property taxes in Cairo, and this is not the first time I have read about architecture being influenced in odd ways by tax policy. For example, in Great Britain there used to be a tax on windows, which meant that houses often lacked windows, or at least have fewer than would otherwise be the case; people were needlessly denied light and air which they could have had.
In Cairo, there is a tax on houses, but it does not apply to unfinished houses, with the result that houses often remain unfinished for many years. To some extent, Egyptians may choose to do things differently from most Americans, for example, by expanding the finished portions of their houses when their families grow. It seems likely, though, that even Egyptians might prefer to live in better finished dwellings, but make a suboptimal choice because of taxes. It may be observed by your Georgist friend that the perverse effects of taxing windows or finished buildings could be avoided by taxing the value of the land instead.
In Cairo, there is a tax on houses, but it does not apply to unfinished houses, with the result that houses often remain unfinished for many years. To some extent, Egyptians may choose to do things differently from most Americans, for example, by expanding the finished portions of their houses when their families grow. It seems likely, though, that even Egyptians might prefer to live in better finished dwellings, but make a suboptimal choice because of taxes. It may be observed by your Georgist friend that the perverse effects of taxing windows or finished buildings could be avoided by taxing the value of the land instead.