“This week Charlie Rangel — the New York Democrat and powerful chairman of the House Ways and Means Committee — gave a news conference in Washington where he admitted failing to report on his taxes $75,000 in rental income from a villa he owns in the Dominican Republic.
Just a few months ago Mr. Rangel admitted that he occupies four rent-stabilized apartments in a posh New York City building. It turns out that in a city with a very tight housing market, Mr. Rangel has wrangled himself a pretty good deal, thanks to rent-control laws that are ostensibly aimed at helping the poor and middle class.”
So, economically rent controls are one of the worst policies that anyone could create. They are politically popular because the idea is that you are keeping rent low for people who can afford it. The problem is that there is no incentive for the apartment owner to keep it up. There are also no incentives for new investors to build new apartments. This in fact, would actually lower the the price of the apartments in the market. Rent controls screw up the competitive market and can completely kill a housing market. Here is more from this story:
“His defense, that “They didn’t give me anything. I’m paying the highest legal rent I can,” is actually true. And that’s precisely the problem. Rent control and rent stabilization have increasingly become a tool of the well-heeled and the well-connected. New York Gov. David Paterson, for example, also keeps a rent-stabilized apartment in the Lenox.”
This is obvious because laws keep the owners from charging more than the rent controls. Of course, people can do things like charge more for a key to be made, or make large non-refundable deposits. This almost acts as a bribe and in some cases, there are just straight up bribes. There is always going to be a black market if the demand is high and the supply is low.
Not to mention the reason, why all of this came up. This is because he evaded taxes. A Democrat evading taxes is like a Nazi hating killing.
There is obviously a corruption problem on top of all of this. The rest is here.