Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Why cant we simply add to income taxes instead of having these huge property taxes?
These high property taxes are the equivalent of kicking someone when they are down.
I know someone who had a regular middle class job, but got laid off, and is having a hell of a time paying property taxes. he has to pay nearly $10,000 a year and he lives in a 3 bedroom split level in a middle of the road town. He has been living there for about 15 years.
Where as if it were an income based tax instead, he obviously would not have to pay nearly $1000 a month in taxes... And the part time work he got to hold him over would be much more effective.
Because if you put all the burden on income, the state would be losing money from all the out of work folks right now. By putting them on property, they're guaranteed to get the money- maybe not from the current owner, but through a tax lien. In your friend's case, it would help him right now, but would hurt the state's coffers.
Why cant we simply add to income taxes instead of having these huge property taxes?
By this, do you mean that the towns should have an income tax instead of a property tax, or that state taxes should be higher and property tax lower ?
One reason to have a property tax is that it is a tax that very specifically targets people who live in that town. It's harder for towns to implement an income tax (because many people do not work in the town in which they reside)
An advantage of this approach is that it one can largely choose how much property tax. and they can do so in a way that doesn't harm the economy (e.g. by moving to a town with lower property tax, or choosing less expensive housing).
Now in terms of having state taxes higher and local taxes lower -- this is a political hot potato because the state can and does redistribute money between towns, and this would increase its power to do so. It would also require a radical overhaul of the way K-12 education is funded.
Quote:
These high property taxes are the equivalent of kicking someone when they are down.
Their productivity is down, but their use of consumer goods (e.g. housing) is not. There is only so much you can tax production without it having consequences.
Consumption taxes have the advantage that they encourage people to save more and consume less. You get taxed based on whether or not you're living large, as opposed to being penalized for being productive. For example, your friend would be better off if he'd bought a less expensive house, because it would have reduced his tax bill.
Quote:
Where as if it were an income based tax instead, he obviously would not have to pay nearly $1000 a month in taxes... And the part time work he got to hold him over would be much more effective.
But then everyone else would be paying more income tax too. So for example, we wouldn't be able to save to buy a nice house because all our money was going back to the state or the town.
Also, everyone else would no longer have the option of moving to a town with lower property taxes (or moving to a smaller house).
I think property taxes also ensure local control of services and schools....... .
There's an over abundance of documentation and evidence showing that the Abbott School Decision and Highland Act, as examples, show that the state and urban govts decide where a most of the money goes.
Why cant we simply add to income taxes instead of having these huge property taxes?
These high property taxes are the equivalent of kicking someone when they are down.
I know someone who had a regular middle class job, but got laid off, and is having a hell of a time paying property taxes. he has to pay nearly $10,000 a year and he lives in a 3 bedroom split level in a middle of the road town. He has been living there for about 15 years.
Where as if it were an income based tax instead, he obviously would not have to pay nearly $1000 a month in taxes... And the part time work he got to hold him over would be much more effective.
Because raising income taxes super high would drive out many high earners. See how quickly they move to a lower tax state or claim residence in FL.
There's an over abundance of documentation and evidence showing that the Abbott School Decision and Highland Act, as examples, show that the state and urban govts decide where a most of the money goes.
Right, but giving all the money directly to the state would be a move further in that direction (since all the money would go directly to the state, they would ultimately control all and not merely most of it).
Right, but giving all the money directly to the state would be a move further in that direction (since all the money would go directly to the state, they would ultimately control all and not merely most of it).
Exactly. And that's really scary. As bad as the local gov'ts can be, at least it stays in town (other than the county tax but let's not get started on that!)
Why cant we simply add to income taxes instead of having these huge property taxes?
These high property taxes are the equivalent of kicking someone when they are down.
I know someone who had a regular middle class job, but got laid off, and is having a hell of a time paying property taxes. he has to pay nearly $10,000 a year and he lives in a 3 bedroom split level in a middle of the road town. He has been living there for about 15 years.
Where as if it were an income based tax instead, he obviously would not have to pay nearly $1000 a month in taxes... And the part time work he got to hold him over would be much more effective.
The question here isn't how do we spread the taxes around so we can pay more......the question is why are NJs taxes the highest in the nation.....how do other states provide the same basic services we receive in NJ with far less tax revenue income to work with !!! Something doesn't add up.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
