Oct 7th 2011, 3:30:37
Originally posted by Atryn:
Property taxes indirectly tax everyone. Everyone lives somewhere. Just because you rent doesn't mean you aren't paying property taxes -- its in your rent.
Property taxes are mostly used to support the services of local government (cities, counties) which support the population which lives on that land. Having revenue based on property taxes also properly aligns the interest of the state/local gov't in increasing the standard of living (and thus property values) in their geography.
Also, property taxes are harder to evade. Income tax and Sales tax are both frequently evaded with cash, barter, black market, under the counter, etc. transactions. When was the last time you gave/paid someone cash that they most likely didn't declare as income? I'll bet it wasn't long ago.
Property taxes also have the benefit of real collateral in the case of a failure to pay. Someone who owes back taxes can leave the country and perhaps never be caught. Their property isn't going anywhere though and can be confiscated.
I think there are lots of good reasons for property taxes. They are structured differently in different jurisdictions though, so I am sure we can point to better or worse implementations depending on your views of progressive or regressive taxation, incentive tax policy, etc.
Property taxes are mostly used to support the services of local government (cities, counties) which support the population which lives on that land. Having revenue based on property taxes also properly aligns the interest of the state/local gov't in increasing the standard of living (and thus property values) in their geography.
Also, property taxes are harder to evade. Income tax and Sales tax are both frequently evaded with cash, barter, black market, under the counter, etc. transactions. When was the last time you gave/paid someone cash that they most likely didn't declare as income? I'll bet it wasn't long ago.
Property taxes also have the benefit of real collateral in the case of a failure to pay. Someone who owes back taxes can leave the country and perhaps never be caught. Their property isn't going anywhere though and can be confiscated.
I think there are lots of good reasons for property taxes. They are structured differently in different jurisdictions though, so I am sure we can point to better or worse implementations depending on your views of progressive or regressive taxation, incentive tax policy, etc.
Sure it is logical, but it is essentially mandatory rent. It makes a person feel like they don't own it because really it is just renting at a low cost to the government.
I understand it, I see why they do it, it isn't terrible for the economy, but damn if it isn't harsh.