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Property Taxes Are Theft - Jefferey Tucker

Posted by freedomforall 4 days, 6 hours ago to Economics
24 comments | Share | Flag

Excerpt:
"Governor Ron DeSantis of Florida has an absolutely thrilling idea, one I never imagined I would see unfold in my lifetime. He is putting on the ballot next year a referendum that would abolish or restrict local governments from taxing owner-occupied homes.

That’s right, he wants to get rid of the property tax, saving residents some $3,400 a year and fundamentally disrupting the way schools and local governments are financed.

Texas is considering the same path.



If this really happens, I can easily predict more of a demographic shift out of the Northeast and Northwest to the South and Texas. If this spreads to more states, it would amount to a revolution in public finance.

It’s long overdue. These tax schemes are brutal on home ownership. Indeed, it’s hard to say that you are ever really the owner of your home if you are having to pay rent to the government every year.

It’s especially a problem in an environment when the home valuation goes up every year and so does the tax you owe on the place. You have done nothing but lived there and enjoyed life. It is entirely paid off. Meanwhile, the government keeps coming after you with ever more pressing demands for money.

You cannot really say you are an owner of anything under these conditions."
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Publik skools are a disgrace.
Stop funding them.
SOURCE URL: https://www.zerohedge.com/personal-finance/property-taxes-are-theft


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  • Posted by JohnRandALL 1 day, 17 hours ago
    It's true. You never really "own" your home, just because the mortgage is paid off. Bravo to Florida and Texas! Unfortunately, I am stuck in Colorado, where the Denver Dems are a billion dollars over budget with the state budget, and trying to figure out how to get even more tax money out of us.
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    • Posted by AmericanWoman 1 day, 3 hours ago
      Am stuck in the same place as you John. El Pasco County taxes, fees, takes over and over. Even put kiosks to renew your vehicle registration many other even Boulder CO of all places do not charge. But money grubbing El Paso takes it and even increases property taxes in new communities calling it for infrastructure just stop building!! So many buy in CO from CA and rent is nauseating.
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  • Posted by $ allosaur 1 day, 5 hours ago
    Me dino's brother Joe, who this year moved from Hoover of Birmingham to a home he had built in Tallahassee, is going to really like this!
    Just by moving from Alabama he also escaped having to pay a state tax.
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  • Posted by CaptainKirk 1 day, 6 hours ago
    Living in FL, I feel I should comment on this.
    First, taxing a home on its increased value is WRONG (it is an unrealized gain).
    Second, All tax on growth should BACK OUT Inflation. As 90% of real estate gains are just inflation.

    But I LOVE this idea. I would settle for limiting the tax to the purchase price. My house was $122K when I bought it. I paid it off decades ago. They say it is worth 545K now. My insurances was < $1K/yr. It would be > $9K/yr now. Double whammy. My insurance+taxes are now BIGGER than my original mortgage.

    Now, my taxes are protected with Homestead exemption. But they are really increasing. From $1,400 to 2,400, now 2,800 with the recent acceleration being insanely fast. The 2% cap is helpful, but NOT after 30 years. And the more expensive the house becomes, the 2% becomes bigger.

    Income tax is slavery.
    Property tax (on sale/purchase) is fine.

    But it begs the question. How do we pay for the services we do get? Schools, Fire Depts, etc?

    Put me back to $1,400/yr (Tax on Purchase Price only), and I am good. But another 35 years in this house is going to be costing me more than ever.

    BTW, Anyone else like the idea of DeSantis as a Supreme Court Justice!
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    • Posted by $ gharkness 1 day, 4 hours ago
      I don't really disagree with you but if the tax is on the purchase price only, that will quickly shut down sales of homes.

      If I lived all these years in the first home I bought as an adult in 1970, the tax on $13k would be negligible. But the tax on $400k with my latest purchase (and which I am paying $4k/year property taxes right now)...it would not help me to sell this property if the price were to go up, even enough for me to cover the real estate agent's commission. People would just stay where they were and the real estate market would collapse.
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      • Posted by NealS 1 day ago
        I'm not so sure about that. Proposition 13 in California has allowed me to keep some land down there, and I have been out of California for the last 49 years. The tax rate has gone up, but the property value has remained the same on the tax bill. It's a much worse tax situatoin for me up here in Washington state.
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      • Posted by 1 day, 3 hours ago
        A collapse in the inflated prices is the only way that most young people have a chance to buy a home. Even with debt slavery, home purchase is now out of reach for most young people.
        Like the stock market, real estate prices have been supported by government interference for decades, protecting the banking cartel and others who feed the parasites in D.C.
        It has also had the effect of making home owners falsely feel wealthier and less likely to tar and feather the D.C. parasites.
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        • Posted by $ gharkness 1 day, 3 hours ago
          I understand that but you will forgive me for not wanting to spend the entirely of my last years on an ice floe in Alaska, because the value of my house collapsed and there's nothing to do but get rid of me.

          I mean, I totally love the my kids and their kids (and grandkids) in my family but I don't want to lose everything for them. Self-sacrifice is not exactly what I am about. I think most objectivists aren't either.
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          • Posted by 1 day, 3 hours ago
            This is why I've been studying places to live outside the US where residence taxation is much, much lower.
            I see no point in paying government (more than rent) to never "own" the home I paid for.
            If I have to pay again and again to the gov, then I don't own it; they do.
            Bottom line in the US, either triple digit inflation or deflation is coming. Best to get out of the way.
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            • Posted by mccannon01 1 day, 2 hours ago
              "If I have to pay again and again to the gov, then I don't own it; they do." That's why I refer to property tax as the "royal rent". Not only that, but if you are a productive little serf and make property improvements you can count on a rent increase coming your way. Let no productivity go unpunished!
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            • Posted by $ gharkness 1 day, 2 hours ago
              "If I have to pay again and again to the gov, then I don't own it; they do." Absolutely true; don't disagree for one second.

              I understand your point and agree with it. My difference is: my kids, grandkids and their kids are far more important to me than what I will ever have to pay in taxes. I didn't actually realize that until I moved away from what I consider "home," to this gawdforsaken place in the desert. I didn't realize what "being in exile" meant until I moved here.

              Which makes me wonder how much of this williness to be exploited by the state is driven by people like me who will pay any price to be near those they love. Just a speculation.
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              • Posted by 1 day, 2 hours ago
                The Deep State and their corrupt conspirators take every advantage they can, and the databases they have now make it possible
                for them to drive people to the razor's edge without most rebelling for exactly the reason you mention. They count on it, imo.
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  • Posted by JohnRandALL 1 day, 17 hours ago
    We have TABOR, the taxpayers bill of rights, that limits taxation in Colorado. But the Dems are trying to figure out a way around it. They want to spend more money on homeless hotels and light rail that runs empty, while the roads are full of potholes, bridges falling apart, and graffiti, trash, and homeless camps are everywhere.
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  • Posted by $ gharkness 1 day, 4 hours ago
    $3,400? I guess that's an average amount, but nowhere near what so many people pay. Ours were at $9k when we moved out of TX to AZ (just assessed at $4k to pay at the end of this year), and now my son's are in the $15k range WITH Homestead exemption (much bigger/nicer house, but good lord, that's a lot). The only way to suffer less at this point is to move to someplace nobody wants to live....
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    • Posted by 1 day, 4 hours ago
      In FL, iirc, if you stay in the same house your valuation does not increase. Only when you sell and get a different home will the valuation change, I think.
      So a long time location-stable resident has lower taxes than a new resident or one who has moved to a different home.
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      • Posted by CaptainKirk 1 day, 3 hours ago
        FFA: Nope. We have homestead exemption. It limits the increase in Property Value to 2% per year.

        Honestly, I think once you retire, it should not go up either.

        But I think taxing unrealized gains is against the law. For obvious reasons. But somehow the STATE does it.

        And I've been in this (my first house) for over 30 years. I could not move because I did not like quadrupling the property taxes. They only go up from there.
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        • Posted by 1 day, 3 hours ago
          Thanks for the explanation, CapnK. 👍
          It does shed light on why the 'average' cited in the article is only $3,400 a year.
          That's about $300 a month more support than the ejakashun system deserves (from this childless sole.)
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      • Posted by $ gharkness 1 day, 3 hours ago
        Yeah, I don't know about FL, but CaptainKirk does, as I see he answered. In Texas, the property is re-valued each year. We even had assessors come by and ask questions about additions, improvements, etc. THIS is why (not protection of the consumer) the state and various cities require PERMITS for improvements. They want in on the goodies. There is the Senior and Homestead exemptions but it's still tough, especially if you sell and buy another house.
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  • Posted by Russpilot 6 hours, 47 minutes ago
    I am really proud to live in Florida with easily the best Gov. in the US. No vaccine mandates of any kind, giving the power back to the people in choice. Let us be adults and make our own decisions! I only worry about all of the liberal trash that wants to move here and mess up our community of adults.
    I, and my family, will be voting for the abolition of property tax here, however. I really don't have a clue how a bill like that would not get the votes needed.
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  • Posted by LarryHeart 1 day, 4 hours ago
    As long as the government controls the amount of debt your FED note represents you own nothing anyway. All it takes is for the government to use ALL the debt in your notes to finance new government spending/debt and your assets are worth nothing.

    The FED Note (debt owed to the banks) instead of certificates of precious metals held in the treasury, is the greatest scam, lie ever made. Inflation is nothing other that prices equalizing to the amount of debt removed from your FED note to finance government over spending. That is impossible with certificates and deadly with Debt Notes.
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