Austin tax burden up 25% in seven years (how much, construction)

[pjoseph2]

Originally Posted by ericsami

There is whole slew of reasons why the country/city needs to raise revenues.

Do you mean, as in forever?

How about some responsible spending instead? As in living under one's means, very little borrowing and so on? Something about future generations?

Just got back from the TCAD informal protest yesterday. When the city manager gets to set the upcoming budget based on "projected" revenue, what is his incentive to cut anything? Oh yes, he might cut the city tax rate from 0.5027% to 0.5020%. What a genius that will make him out to be.

And yes, interest rates are at generational lows. How will that affect housing (new borrowing) and in turn tax payments. Ben Bernanke must be giddy that his plan is working thus far.

[Lowexpectations]

A 3% increase in value per year nearly gets you to a 25% increase in 8 years. What have Austin property values done over the last 7 years?

[folkguitarist555]

crazy high property taxes in TX, a lot like WI, NH, and NJ

[hillcountryheart]

Originally Posted by sojourner77

Then I guess they will have to take the $400K profit they made, and go drink away their sorrows with it.

Where? If their job is based here? They can't live on $400k the rest of their lives. What if they have family responsibilities here (they care for grandchildren so parents can work, or an elderly parent)?

There are very real reasons why people need to be able to stay in an area where they have roots and responsibilities. We don't "do" rent control in Texas.

Do you custody-share? Have an elderly parent in town? A disabled sibling or adult child?

[scm53]

Originally Posted by Lowexpectations

A 3% increase in value per year nearly gets you to a 25% increase in 8 years. What have Austin property values done over the last 7 years?

Since it compounds, 3 %/yr is actually more like up 33% in 8 years. 3%/yr would be 100% in 24.

[Lowexpectations]

Originally Posted by scm53

Since it compounds, 3 %/yr is actually more like up 33% in 8 years. 3%/yr would be 100% in 24.

Your math is off slightly 8 years is 27% or so 9 years close to 31% but doubling would come between year 23-24

[scm53]

Originally Posted by Lowexpectations

Your math is off slightly 8 years is 27% or so 9 years close to 31% but doubling would come between year 23-24

English major math. Rule of 72. Even you had to come back and say it was more than the 25% in eight years you originally said.

[austinnative69]

Originally Posted by Biscuits

If taxes only went towards the essentials that you mentioned, then I could accept it. They don't.

I'm curious, who do you think is the bigger drain on public resources between the relatively modest Central Austin household paying $15,000 in property taxes or you? That household sends approximately $7,500 -- and rising -- to AISD annually.

Only to see AISD have to transfer $175M to other districts, even though 62% of AISD students qualify for reduced lunch subsidies.

[scm53]

Originally Posted by austinnative69

Only to see AISD have to transfer $175M to other districts, even though 62% of AISD students qualify for reduced lunch subsidies.

If the city wasn't so busy driving middle class families with children to the 'burbs, maybe that percentage wouldn't be so high. In 1970, 40% of Austin households had kids. Last year, it was 25%. Ten million of that $175 was due to just this year's enrollment decline of right at 1,200 kids.

[ericsami]

Originally Posted by Biscuits

If taxes only went towards the essentials that you mentioned, then I could accept it. They don't.

It is like that famous saying "One man's terrorist is another man's freedom fighter."

Essentially it depends. to a business owner essentials most likely means continuity of water, electricity, fire service and perhaps most importantly law and order.

to a single mom essentials might mean head-start for children so she can go to work. or parks were children can burn some of that energy.

to a large business an essential might mean the best road to an airport. or an airport with an international terminal.

Originally Posted by Biscuits

I'm curious, who do you think is the bigger drain on public resources between the relatively modest Central Austin household paying $15,000 in property taxes or you? That household sends approximately $7,500 -- and rising -- to AISD annually. You don't think they might have a gripe concerning the sustainability of this system? Do you not see how this unsustainable system is eventually bad for everyone -- including renters -- who cares about an affordable Austin?

Taxing by property value is not perfect at all. It does put an onus on the middle class and upper middle class. but that 15000 taxes you mentioned that household is sitting on 500-600K house. It is not as if they are entirely out of options.

I can see why people would gripe about property taxes.

I am not happy about it either.

but frankly people would gripe about any taxes. people with high income come in droves to Texas because of no state income tax.

many Studies have shown that a developed country like the U.S needs to raise 30% of GDP in taxes in order to render government services.

the money has to come form somewhere. if not from income tax, property tax, sales tax then it has to come from corporate taxes (which they say it should be at 0% to make them more competitive), excise
taxes.

Lately all government around the world are pushing Fee for Service. and the in U.S that is now about 10% of countries revenues.

Federal State Local Government Tax Revenue in United States for 2014 - Charts Tables


The bottom line is any kind of taxation favors some and hurts others. There are so many constituencies for each program that the a locality runs that it would be literally impossible to cut those programs. you can go down the list.

Parks -> People with children.
Bike lanes -> people who like outdoors.
Lake Maintenance -> Anybody with a boat property around it.

Once a program is in place it is literally impossible to get rid of it unless you are Detroit and have your revenue base shrinking.