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> they consume more and pay taxes, the taxes support municipal services which pay the salaries

In India, neither income taxes nor consumption taxes go to the local municipalities. This fact makes the rest of your comment meaningless although positive loops can be created in other ways.

But my original point stands: Local governments need to increase their housing taxes and provide these services

There’s a pro-Poor policy bias in places that are actually rich and these places have very different expectations.




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