Merge Proposals on Eliminating Property Taxes
I propose that the following 3 policy proposals, about Eliminating Property Taxes, get merged:
Written by @Lalub
Written by @No_Name
Written by @Ell
These proposals are all in regards to the same issue with solutions that are either complimentary to each other or would resolve each other.
#4
By @Dekeita
These should not be merged. I believe there should be no property taxes and allodial title should be restored to the people.
If we wait until the property is already paid off, that person has been paying taxes on land for 30+ years and wouldnât be able to improve the value of the land in any sort of way if theyâre only able financially to just make payments and pay taxes for the duration of the loan. Itâs money wasted that could have gone to increasing that property value and those around them instead.
As for waiting till a person is 65, this is like waiting till youâre old to go on vacation. Let the American people keep their money theyâve wasted in property taxes and use it as they see fit. We will better be able to make more informed choices with our dollars in this way - especially when a large portion of property taxes goes to fund the failing public school system which many would rather opt out of regardless.
These deceptive taxes are tied to these âimportantâ things on purpose in order to keep people in the cycle of saying âwhy are you so selfish that you donât want to fund schools?â when in reality, parents get no choice how good or bad their schools are, even when property taxes are high. NY, NJ, and CA are the examples of this. Highest property taxes and money thrown into schools, but the performance doesnât match the input. Additionally, people in these areas who can afford it still just send their kids to private institutions.
I feel like property taxes should be done away with period. We pay taxes on everything else and we pay taxes when we buy the house. The constant property taxes are double taxing us witch shouldnt be legal.
There should not be any taxes on anyone over the age of 60! Especially since most are going into retirement which means a fixed income without the ability to work, no property taxes, school taxes, sales tax, the elderly should be living tax free!
Paying property tax is akin to the Crown and other countriesâ monarchies owning the land and the people lease it to build their homes or otherwsie. The Crown still owns the land.
Garbage! Once a person buys the land, builds the home, pays the permits and fees to the state/county/city- they should get an allodial title for life. The problem with municipalities that impose ongoing tax is that they budget poorly, have no âskin in the gameâ for the money as it comes in from taxpayers and run amok in their spending. EVERY BUDGET MUST BE BALANCED at fiscal end or taxes imposed are null and void.
Politicians and administrators must be responsible with other peopleâs money. No excuse for malfeasance, misfeasance, and nonfeasance and bad fiscal projections.
If federal taxes can be replaced with tariffs, it seems to me county and city taxes can be replaced with sales tax. But no sales tax on essential items like food, electricity, gas, fuel.
I would also include that home owners with no children in school do not pay property or school taxes.
Constitutional argument here
Firstly property taxes are state levied so asking the federal government to do a job that they might not have the authority to do is a useless endeavor. Secondly I do agree that nobody should lose their primary home if they donât pay their property taxes. That removes the whole meaning of ownership. Some states for example in FL have a homestead exemption based on certain factors that lower your taxable amount on your primary resident up to 50k and that amount will now increase each year with the rate of inflation. I also donât believe in creating an inheritance tax if someone dies and their home is passed onto their children. Being in real estate for nearly a decade most of what I come across are helpless or clueless heirs left with their parents home and would be forced to sell it to pay for the probate attorney fees and court costs just to legally inherit the home. Adding on a âinheritance taxâ wouldnât make sense. Its like taxing unrealized gains. If I inherit my parents home which could be worth hundreds of thousands of dollars I would then be forced to sell it just to pay the inheritance tax. If I wasnât in a super stable financial position in life then my parents leaving me their house would be pointless. If parents die and pass their home onto their children that is an essential core piece of the American dream in my opinion. The parents worked and got their house, raised a family, and now leaving their house to their child who at his stage in life might be a blessing when the path to homeownership these days gets increasingly more out of reach with each passing year. What typically happens during the probate process is the house gets appraised and the property tax value jumps up to the appraisal. In most states there is a limit on how much the taxable value of a home can increase, for example in FL its no more than 3% per year. Which is why someone might own a 350k home but tax records show its taxable value at 135k. I believe an inheritance tax of any kind is unamerican regardless of how rich or poor you are. Uncle sam already dipped his hands in the coffers of peoples parents from every tax under the son while they accumulated whatever they have and then when they pass it to their children Uncle Sam comes knocking again for 0 reason. Thatâs the most unamerican thing. The other issue arises that if erase property taxes as they are now and replace them as a once when you buy model similar to cars then that increases the amount of money people either have to bring to the closing table or borrow from the bank. That would further hurt home affordablility. Property taxes at the end of the year are usually pretty minimal depending on how expensive your house is. But if im paying lets say 3k a year and I live there for 10 years then thats 30k. If I pay that up front thats 30k on top of the 20% down plus closing costs. That means on a 400k house I would need 80k down probably about 6k in closing costs and then another 30k for property taxes. So id need 116k just to buy a 400k house and only have 80k in equity. If you wrap the 30k taxes into the mortgage then youd be borrowing 350k on a 400k house. If someone had a personal emergency and needed to sell the house they would have negative equity and would be shit out of luck. Its complex trying to remove the primary way schools are funded since the origination was property tax was exclusively to fund schools and right now our education budget cant take a hit like that. A better option would be that Taxes are levied on the purchase but are only required to be paid by the seller upon the sale of the property. So if I sell for 360k I owe a % in property tax. It may sound like alot to come out of the proceeds however you also didnt just pay a few grand every year on top of your mortgage. That may also shake the mortgage industry up a bit when they foreclose. I think the best alternative is a tax that is a set rate for how many years that property has been owned by the current owner. That way if I buy a house and move in a year for work I pay a smaller amount because Ive only owned it for a year. In addition that will create a larger gap in the income since its not yearly. If they also roll out an option where if people pay a set amount per year like they do know they can get a credit and discount when they actually sell it. So maybe they would owe 30k when they sell but over their ownership they paid 5k then that gets credited and then maybe give them a 10% credit off the total amount. That way it still incentivizes people to pay on a yearly basis and give the local governments the consistent reliable income to budget off of.
No this should never be a thing. Just because I donât have kids doesnât mean I shouldnât be required to contribute to schools. Especially now with a declining birthrate the school system would end up being like social security where its bankrupt and the only people paying are the ones who cant afford it. Im happy to pay property tax to keep education standards and my community better. If education drops bc of childless families then why area turns into a shit hole faster then cities are now.
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