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then how come conservatives complain that renters/low-income people don't pay enough federal income tax but they never mention that renters/low-income people pay upp the wazoo when it comes to property taxes - and that in many cases it's homeowners who aren't paying their fair share?
Location: Just transplanted to FL from the N GA mountains
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How many times has it been said here. Real Estate taxes are assessed and collected at the LOCAL level. For schools, libraries, fire protection districts. Even renter's should pay their fair share of these. They use the services just like homeowners do....
If it's about making evil landlords pay higher taxes, why not rebate those higher taxes directly to renters?
e.g. the nonhomestead tax in Michigan is a discrete tax which is easy for all to see and quantify, and thus could easily be rebated to renters.
For starters because not all renters are poor. Second, if it is just going to rebated anyway why have the higher tax to begin with? It is much easier to have all property taxes the same. Third, we do have welfare programs that do help the poor.
Lastly, renting is not always a worse proposition than owning a home. If it costs you $600 to rent and $850 to buy then you are likely better off renting. The interest deduction is rather negligible and you have to pay a lot of interest before you really see a deduction in taxes. Ditto for the property taxes.
Quote:
Originally Posted by freemkt
then how come conservatives complain that renters/low-income people don't pay enough federal income tax but they never mention that renters/low-income people pay upp the wazoo when it comes to property taxes - and that in many cases it's homeowners who aren't paying their fair share?
Because conservatives are hypocrites. "Okay for me but not thee" Most of the criticism isn't towards renters though. My rent is more than a mortgage in the south would be, but that has no effect on taxes.
Quote:
Originally Posted by rbohm
this is a catch22 situation. the states need revenue, so they raise property taxes, which means you pay a higher rent. but now you want the state to rebate the excess property tax to you, even though you technically dont pay it, but that takes revenue away from the government which means higher taxes again, which translates into higher rents. in other words your idea is foolish.
Not necessarily, equal taxation based on property values with no exemptions would result in lower taxes for all but homeowners. Businesses and renters would see a reduction.
It's not available because renters don't pay the tax. Do you pay tax, as a renter? I don't mean your landlord does, then you rationalize by saying that because you pay rent to the landlord, you are paying the tax. Do you pay property tax?
Seriously? Yes, renters pay tax. Without the renter the landlord would not collect rent. No exemptions are applied to rental property so the taxes and the resulting rent is higher.
then how come conservatives complain that renters/low-income people don't pay enough federal income tax but they never mention that renters/low-income people pay upp the wazoo when it comes to property taxes - and that in many cases it's homeowners who aren't paying their fair share?
Missed that one big time.
So property owner pay property taxes.
If a property owner wants to rent a home it must make financial sense to do so.
If it costs a property owner $1000 a month in payments and up keep. The. They then make $100 in profit because they have hundreds of thousands of dollars tied up in the property. That would make rent $1,100 a month. Then states decide to tax property values and this house now has to pay $200 a month in property tax. Now rent goes up to $1,300 to cover the increase in expenses.
If you got rid of property taxes for homeowners, rent would go down across the board.
Who do you think pays for taxes on business or oil or any other product? The consumer.
And low income people don't pay enough because they don't pay anything at all, see earned income tax credit.
then how come conservatives complain that renters/low-income people don't pay enough federal income tax but they never mention that renters/low-income people pay upp the wazoo when it comes to property taxes - and that in many cases it's homeowners who aren't paying their fair share?
You voted for Obama and his raise tax campaign. What you have done is shown government that it is popular to tax so I hope you get more taxes up the wazoo so you get a little of your own medicine.
When you wish something on someone else don't blame them when they smile when it hits you.
Seriously? Yes, renters pay tax. Without the renter the landlord would not collect rent. No exemptions are applied to rental property so the taxes and the resulting rent is higher.
No renters don't directly pay tax. If that rental is vacant the property taxes still have to be paid on it by its owner.
Many states have property tax relief programs which mitigate the burden faced by homeowners, especially those who are (depending on state) elderly, disabled, or veterans.
These programs rarely are available to renters or to rental property.
This can't be about fairness, since renters generally have much lower income than homeowners, and negligible net worth, so what's the rationale? Is it just a crass political payoff to high-turnout voters?
Most renters are rather transient, and it's easier for a renter to move than a homeowner.
No renters don't directly pay tax. If that rental is vacant the property taxes still have to be paid on it by its owner.
The end consumer always pays the tax, always. Just because a tax isn't itemized doesn't mean it isn't being paid. If we instituted a massive tax hike on oil companies, irrespective of profits, the end consumers would be paying the tax not the oil companies. Similarly, if we got rid of oil subsidies (an effective tax increase) the end consumers would feel it, not the oil company.
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