It’s not “inherently progressive”. The rate is flat and therefore not progressive in the technical sense, though the result can appear that way. People tend to self-select into the highest tier housing they can afford. So, the tax can feel progressive even though structurally it isn’t.
To see that it isn’t truly progressive, consider someone buying property with accumulated wealth. The tax only increases proportionally with the property’s value; the rate itself never rises.
It’s not “inherently progressive”. The rate is flat and therefore not progressive in the technical sense, though the result can appear that way. People tend to self-select into the highest tier housing they can afford. So, the tax can feel progressive even though structurally it isn’t.
To see that it isn’t truly progressive, consider someone buying property with accumulated wealth. The tax only increases proportionally with the property’s value; the rate itself never rises.