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Old 03-01-2016, 04:36 PM
 
6 posts, read 3,315 times
Reputation: 24

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Quote:
Originally Posted by Trainwreck20 View Post
The retired folks can already defer their taxes, if they want to. Comes out of your estate eventually, but prevents you from having to worry about losing the home.

As mentioned in other threads, rental prices are based on supply and demand, not taxes, so the 'curative' effect would be that more people might be able to buy instead of rent.

And yes, there are lots of combinations of taxes that could be considered, but I doubt anything remotely 'fair' is being envisioned by those proposing to eliminate property tax and establish a CT. And while we don't currently tax food, many consumption taxes do and there is no mention of what is really being 'proposed'.

Finally, the whole school funding system would have to be re-worked, for better or worse, since there would be a massive decrease in taxes in non-commercial areas.
I agree. The one thing that bothers me about getting rid of the property tax is that builders and developers would see that as a reason to increase prices on homes. Texas has enjoyed affordable home prices (as compared to the rest of the country) for years and it has been a driving force in keeping our economy so strong. I am afraid of what it might do to that. The other thing about getting rid of it that bothers me is, like you said, there is no mention of a proposal to replace the current system.

I did not know about the elderly deferral. So it essentially ends up becoming a death tax?
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Old 03-01-2016, 04:42 PM
 
6 posts, read 3,315 times
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Quote:
Originally Posted by TheOverdog View Post
Yes. Do you have any other obvious questions?
So one should be at risk of losing their house that they have paid completely off and own the land and property simply because they can't pay in perpetuity to the state? That is fair to you? It is extortion. At what point does one pay more in taxes (in a lifetime) than the property is worth?
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Old 03-01-2016, 04:45 PM
 
Location: Austin, TX
15,244 posts, read 35,499,486 times
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Quote:
Originally Posted by BigTexNorth View Post
I did not know about the elderly deferral. So it essentially ends up becoming a death tax?
It accrues with 8% simple interest (not compound, which is significant) and it comes out of the sales of the house when you move or die. The final 'bill' (as I understand it) cannot exceed the proceeds of the house sale.

Quote:
The one thing that bothers me about getting rid of the property tax is that builders and developers would see that as a reason to increase prices on homes.
Kind of...the builders won't 'charge' more, per se, but people will be willing to pay more. So yes, it would lead to housing inflation.
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Old 03-01-2016, 04:46 PM
 
6 posts, read 3,315 times
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Quote:
Originally Posted by TheOverdog View Post
In most VAT/consumption tax schemes, food is taxed. If you are explicitly removing property tax and income tax, then it's your goal to hit the poor for taxes harder than the wealthy. It's blatant and obvious.

And wealthy people pay less consumption tax because more wealthy income is hidden in 401k, IRAs, education/HSA and many other very common tax avoidance vehicles.
No, food purchased in a grocery store in TX is not taxed. Sorry. It just is not so. And we already participate in a consumption tax. All pay 6.25% state sales tax on NON-FOOD items. Sure, the big mac purchased with the EBT card at McDonalds is taxed. But unprepared grocery food is not.

And no one has a "goal" to take the poor. People (regardless of party) do not think that way. Please remove the tinfoil hat. The "goal" is fairness. It is not fair to expect a specific demographic of the population to bear the financial burden for all. All must have some liability. Tearing down the rich will not build up the poor regardless of what Bernie Sanders website you are frequenting.
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Old 03-01-2016, 07:08 PM
 
Location: Austin, TX
15,244 posts, read 35,499,486 times
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Quote:
Originally Posted by BigTexNorth View Post
No, food purchased in a grocery store in TX is not taxed. Sorry. It just is not so. And we already participate in a consumption tax. All pay 6.25% state sales tax on NON-FOOD items. Sure, the big mac purchased with the EBT card at McDonalds is taxed. But unprepared grocery food is not.
The implication of the proposition is that the tax system will be changed. How, exactly, is not specified, but the fact that groceries are not taxed now does not mean they will not be in the future under some other tax system.
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Old 03-02-2016, 08:10 AM
 
17,389 posts, read 11,917,005 times
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Quote:
Originally Posted by BigTexNorth View Post
So one should be at risk of losing their house that they have paid completely off and own the land and property simply because they can't pay in perpetuity to the state? That is fair to you? It is extortion. At what point does one pay more in taxes (in a lifetime) than the property is worth?
The argument is usually made that those homeowners MUST pay property tax because they use the roads, etc., that are paid for with those taxes.

But as soon as you suggest that those that DON'T pay property taxes put some skin in the game, you're called a hater. Don't those people use those roads as well?
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Old 03-03-2016, 08:18 PM
 
7,005 posts, read 12,435,181 times
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I thought this article would be an interesting read to participants in this thread. It explains how Louisiana got a regressive tax system (low property taxes and high sales taxes).

Note: The author of this article works for a conservative website and magazine.

Quin Hillyer: Louisiana should tax the rich; current system is 'bass-ackwards' | The Advocate — Baton Rouge, Louisiana
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Old 03-08-2016, 12:26 PM
 
2,258 posts, read 3,484,392 times
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Quote:
Originally Posted by BigTexNorth View Post
So one should be at risk of losing their house that they have paid completely off and own the land and property simply because they can't pay in perpetuity to the state? That is fair to you? It is extortion. At what point does one pay more in taxes (in a lifetime) than the property is worth?
Where do you suggest the state get its revenue to operate? There are already property tax reductions in a lot of places for the elderly and 100% disabled.

Property tax sucks, but schools need to be maintained, roads need to be built, libraries kept open, NFL stadium owners need to be subsidized, etc.

Consumption taxes can work to encourage savings and investment, but I think it'd need to be structured in a way to ensure it is applied progressively and not regressively, as the Prop. 1 most certainly would be.

I think one thing we can all agree on is that Texas' system on no income tax has worked out to our advantage.
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