Will Texas ever replace High Property taxes with Income Tax? (Atlanta: rent, home)

[supfromthesite]

Maybe compared to the North

[Cuero]

If you don't like the high property taxes then don't move here, simple as that.

To answer OP question, no, not in our lifetimes. It goes against the fundamental fabric of this state.

[verybadgnome]

I can't find exact numbers on it but apparently almost 40% of California taxpayers don't pay any state income tax after deductions........To me this translates to a tax hike not just on the top 20%, but also on the 40% to 80% bracket, i.e. the middle class. The counterargument would be that many middle income earners are already paying more for things like recapture. I would also add that the bottom 40% to 45% percent pay zero or negative (about 1 in 7) federal income taxes yielding a situation where the bottom 2/5th don't really contribute much of anything to federal or state coffers.

I don't know of a solution but at the same time I shouldn't be asked to pay more that I am already.

Maybe appraisal districts should lower the age of deferring taxes so that low income people who own fast appreciating real estate can be covered. That way the jurisdictions would eventually get their money and the residents won't be taxed out of their residence. The taxes owed will always be less than the appreciation unless the house burns down or some other calamity.

[supfromthesite]

Originally Posted by Cuero

It goes against the fundamental fabric of this state.

explain

[ScoPro]

Yeah, just soak the middle class more.

[supfromthesite]

You can do this and not raise taxes. You can even lower taxes depending on what the tax rates are.

[Trainwreck20]

The state is going to gets its money from individual citizens, one way or another - the bulk in most states comes from income or property tax. Sales taxes are one of the top three, usually, but is extremely variable in how it is applied. Texas does property tax and no income tax. Most states do income tax and some property tax.

The thing that I find funny is the assumption that advocates of change are all seeming to make - 'my' taxes will go down if we go to an income tax! Maybe, maybe not, but it certainly is not a guarantee. I have done all sorts of cost-analysis as retirement approaches, and the Texas property taxes and no income tax work out quite well, actually, as time goes forward - mainly because of the school tax freeze and the significant exemptions for 65+.

Anyway, what people tend to ignore is that in a two-income family (or three or more if kids working, etc), the property tax is basically split among all the residents. An income tax goes up each time there is a new income stream. Property tax works well for dual income families that live in modest housing. It sucks for one income families that live in expensive housing.

And what people also tend to ignore are how hard it is to 'hide' or 'offshore' your property. If you own a 2 million dollar house in Austin, you WILL be paying $40k+ year in taxes, year in/year out. There are no write-offs or hiding the value. And if you don't like that, you can sell the house and get a cheaper one and not lose any of your income. How many wealthy people manage to hide their money or take all sorts of deductions to avoid paying taxes?

[supfromthesite]

Old people are the ones getting screwed over regarding the property tax.

I looked at Florida's subforum and there seems to be overwhelming support for replacing their high property tax with a higher sales tax or an income tax

[Trainwreck20]

My mom pays ~$2,000 a year in property taxes on a $250k-300k house in Fredericksburg, TX. She sure is screwed, eh?

The overwhelming support is to try and change the system so 'they' pay less tax and 'someone else' pays for the state budget...

[ebuch]

Originally Posted by supfromthesite

Old people are the ones getting screwed over regarding the property tax.

I looked at Florida's subforum and there seems to be overwhelming support for replacing their high property tax with a higher sales tax or an income tax

I think after a certain age is met the home owner should be able to stop paying towards the ISD Tax. A 60-70 year old shouldn’t have to pay towards an ISD tax.... I am even a believer if you don’t have kids maybe not paying towards it as well... (This one probably wouldn’t happen lol.)