Property Taxes, Government.
However...
Laws in most states that prevent big tax hikes when property values soar also block big tax drops when values sink.Mallard made no mention of this during the entire housing boom. How surprising that he's suddenly concerned.
3 comments:
Property taxes pay for schools and safety other stuff that Mallard whines about on other days, so it's hard to take him seriously on this topic.
However, it does seem unfair that the only form of accumulated wealth that we tax in the USA is the house we live in. This is no doubt a remnant of "ye olde days" when land was the basis of wealth. But now-a-days, most accumulated wealth are some sort of financial instrument, e.g. stocks, bonds, bank accounts.
It would make a lot of sense to fund our schools, fire departments and other necessaries by taxing ALL accumulated wealth roughly equally. We could cut the property tax rate if "Property taxes" covered "property", not just "land and buildings".
Local property taxes are going up mainly because the anti-tax morons will not allow income taxes to be raised. When the states wake up to projected billion-dollar shortfalls, they decrease payments to local governments, whose sole source of income is property taxes. Unless we want to cut back schools, fire, roads, and police services, we are forced to raise property taxes.
When times are good, it's "don't spend it, return the surplus to the taxpayers". When times are bad, it's "this is not the time to raise taxes". We get moronic analogies comparing government to families: "At a time when families are tightening their belts, gevernment should do the same". In reality, families who remain employed don't really have to cut back, while those who lose the unemployment lottery have their very survival called into question. It makes sense to help the losers by taking a little sacrifice from the winners in the form of taxes, but that would be socialism, which leads to gulags, cardboard shoes, and only one brand of vodka on the shelves of the state-run liquor store.
Not so long ago, there was a proposal to raise the state sales tax by $.01. No 1%; $.01. It failed, largely thanks to the "no new taxes" mantra.
Ducky clearly enjoys demonstrating a complete and total lack of knowledge for how reality works. For examble, he seems to believe that houses are payed for with colorful arrows. Also, if the value of your property drops, and the percentage of that value you pay in taxes raises, you will mostly notice no actual change in your property tax payments. Which, for me at least, you pay once a year. So it's not like you're losing your daily allotment of money for booze.
Wanker.
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