Property Tax Abolition and Alternative Revenue Generation Act

Economy
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1

To eliminate the current property tax system and replace it with a fair, growth-oriented, and transparent alternative that ensures stable funding for essential public services while promoting economic development and reducing fiscal distortions.

5 Likes
2

What alternate revenue stream do you suggest?

2 Likes
3

Eliminating it will be difficult, as property taxes pay for schools in most places, but modifying and curtailing it would be a great idea. In Albuquerque, our property taxes went up about 3% every year, just because. APS is a large district, but they are very top-heavy on the administration side. Too many chiefs and not enough indians. All positions and salaries should be published at least yearly, with justifications for why they exist. I would propose that all property taxes for each homeowner stop after a certain length of time, perhaps 12 years. That way, all homeowners have some skin in the game for a time, yet see light at the end of the tunnel. Property taxes are a real drain on older people who are empty nesters and living on fixed incomes. In expensive areas like Santa Fe, Hollywood types move in, driving up taxes, and as a result, people of lesser means often end up losing their homes because they can’t pay the taxes in their senior years.
And don’t even get me started on “death taxes!” No one should lose a family farm because of hog at the trough greedy politcians…

3 Likes
4

If you buy a home and have a 15 or 30 year mortgage your paying property taxes throughout the life of the loan, when the home is paid in full property taxes should end otherwise your just paying rent on what you already paid for. The same applies for everything, you work and are paid for your labor, you are taxed your employer is taxed, then you go to buy anything and it’s all taxed. Older retired people have to choose between paying their property taxes and eating that should never happen.

2 Likes
5

Exactly, and you’ll never truly own your home.

1 Like
6

As for the person that asked what do you suggest we replace it with, I asked Grok to make a list of federal, state and local taxes that are charged your whole life. They are literally bleeding us dry! So to his question I wouldn’t replace it with anything, all taxes are theft!

  1. Wages and Salaries

    • Federal: Federal income tax (10%-37%), Social Security (6.2%), Medicare (1.45%).
    • State: Income tax in 41 states + D.C. (e.g., 4.25% in Michigan to 13.3% in California).

  2. Tips

    • Federal: Taxed as income, with mandatory reporting if over $20/month per employer.
    • State: Taxed as income in states with income tax, plus sales tax on tipped services in some cases (e.g., restaurant bills).

Retail and Consumption Taxes

  1. General Retail Purchases (Goods)

    • Federal: No federal sales tax, but excise taxes apply to specific goods (e.g., tires: $0.09-$0.94 per pound). Income tax on retailer profits.
    • State: Sales tax in 45 states (e.g., 6% in Missouri, 8.875% in New York with local add-ons), applied to most tangible goods like clothing, electronics, and furniture.

  2. Groceries (Food for Home Consumption)

    • Federal: No federal sales tax, but income tax on grocery store profits.
    • State: Taxed in 13 states (e.g., 6.5% in Mississippi, 4% reduced rate in Illinois), though many states exempt groceries or tax at a lower rate.

  3. Restaurant Meals

    • Federal: No federal sales tax, but income tax on restaurant profits and employee wages.
    • State: Sales tax in 45 states (e.g., 7% in Indiana plus local taxes), often with additional “meal taxes” (e.g., 1% extra in Virginia cities).

  4. Online Purchases

    • Federal: No federal sales tax, but income tax on seller profits.
    • State: Sales tax collected in 45 states post-Wayfair (2018), based on buyer’s state rate (e.g., 6.35% in Connecticut).

  5. Gasoline

    • Federal: 18.4 cents/gallon excise tax.
    • State: Excise taxes (e.g., 51.1 cents in Pennsylvania) plus sales tax in some states (e.g., California).

  6. Alcohol (Beer, Wine, Spirits)

    • Federal: Excise taxes (e.g., $0.58/gallon for beer).
    • State: Excise taxes (e.g., $0.20/gallon beer in Texas) plus sales tax at purchase.

  7. Cigarettes and Tobacco

    • Federal: $1.01/pack excise tax.
    • State: Excise taxes (e.g., $3.51/pack in Rhode Island) plus sales tax in most states.

  8. Clothing

    • Federal: No federal sales tax, but income tax on retailer profits.
    • State: Sales tax in 45 states (e.g., 5.6% in Kansas), with exemptions in some (e.g., Pennsylvania exempts most clothing).

  9. Books

    • Federal: No federal sales tax, income tax on publisher/retailer profits.
    • State: Sales tax in 45 states (e.g., 6.25% in Massachusetts), unless exempt (rare).

  10. Cars (New and Used)

    • Federal: No federal sales tax, but income tax on dealer profits; $1,000-$2,200 gas guzzler tax for low-MPG vehicles.
    • State: Sales tax (e.g., 7.25% in California) or specific vehicle taxes (e.g., 3% motor vehicle tax in Connecticut).

  11. Prescription Drugs

    • Federal: No federal sales tax, but income tax on pharmaceutical profits.
    • State: Exempt from sales tax in most states, but taxed in a few (e.g., Illinois at 1% reduced rate).

  12. Over-the-Counter Medications

    • Federal: No federal sales tax, income tax on profits.
    • State: Sales tax in 45 states (e.g., 6% in Missouri), unless specifically exempted.

  13. Fishing and Hunting Gear

    • Federal: 10%-11% excise tax on firearms, ammo, fishing tackle, and bows (Pittman-Robertson and Dingell-Johnson Acts).
    • State: Sales tax in 45 states (e.g., 4.225% in Missouri) on top of federal excise.

Licenses and Activities

  1. Marriage License

    • Federal: No direct federal tax, but income tax implications via “marriage penalty” or benefit (e.g., joint filing can increase/decrease tax liability).
    • State: Fees vary (e.g., $35 in Texas, $115 in Minnesota), not technically a tax but often mandatory; some states tax marriage-related income (e.g., officiant fees).

  2. Fishing License

    • Federal: No federal license fee for general fishing, but excise taxes on gear (see above) fund conservation.
    • State: License fees (e.g., $19/year in Florida, $41 in California), treated as a user fee but akin to a tax; revenue often taxable at state level.

  3. Hunting License

    • Federal: Excise taxes on firearms/ammo (10%-11%).
    • State: License fees (e.g., $20 in Georgia, $150 for non-residents in Montana) plus sales tax on gear.

  4. Driver’s License

    • Federal: No federal tax, but income tax on state revenue indirectly.
    • State: Fees (e.g., $32 in Ohio, $89 in New York), not a tax per se but a cost of participation.

  5. Vehicle Registration

    • Federal: No federal tax, but income tax on state-collected revenue.
    • State: Annual fees (e.g., $60 in Virginia, $225 in California), often including a tax component (e.g., California’s road improvement fee).

  6. Business License

    • Federal: No general federal license, but income tax on business profits.
    • State: Fees vary (e.g., $50-$100 in Texas), plus state taxes on business income in 44 states.

Property and Utilities

  1. Real Estate (Home Ownership)

    • Federal: No federal property tax, but capital gains tax on sale profits (up to 20%) and income tax on rental income.
    • State: Property taxes (e.g., 1.31% average in New Jersey) plus transfer taxes (e.g., 0.75% in Florida).

  2. Rent Payments

    • Federal: No federal tax on rent paid, but landlord’s rental income is taxed.
    • State: No direct tax on rent paid, but some states (e.g., Hawaii) apply general excise tax to landlord revenue (4%).

  3. Utilities (Electricity, Water, Gas)

    • Federal: No federal sales tax, but excise taxes on some energy sources (e.g., coal) and income tax on utility profits.
    • State: Sales tax in some states (e.g., 6.85% on utilities in Nebraska) or specific utility taxes (e.g., 5% in New Mexico).

  4. Internet and Cable Services

    • Federal: No federal sales tax, but income tax on provider profits.
    • State: Sales tax in many states (e.g., 7% in Washington) plus telecom taxes (e.g., 5.65% in Colorado).

Life Events and Miscellaneous

  1. Birth (Hospital Bills)

    • Federal: No federal tax on services, but income tax on hospital profits.
    • State: Sales tax on non-exempt medical supplies in some states (e.g., 6% in Tennessee).

  2. Death (Estate and Funeral Costs)

    • Federal: Estate tax on estates over $13.99 million (2025).
    • State: Estate/inheritance taxes in 12 states (e.g., 10% in Kentucky); sales tax on funeral goods (e.g., caskets) in 45 states.

  3. Lottery Winnings

    • Federal: Taxed as income (24% withheld, up to 37% total).
    • State: Taxed in states with income tax (e.g., 8% in Oregon); some states tax winnings even without income tax (e.g., 5% in New Hampshire).

  4. Parking Fees

    • Federal: No federal tax, but income tax on operator profits.
    • State: Sales tax in some states (e.g., 6% in Kentucky) or specific parking taxes (e.g., 18% in Chicago).

  5. Tolls (Roads, Bridges)

    • Federal: No federal tax on tolls, but income tax on toll revenue.
    • State: Toll fees (e.g., $8 E-ZPass in New York), not a tax but a cost often tied to state taxation systems.