Let me back track on one comment. I don’t really think property taxes are the best way to get the revenue the government “needs”. But, there they are.
The real problem with the “fixed income” people is that taxes are simply too high period. It would be better if the taxes were on assessed value, or on a percentage of assessed value. That wouldn’t be a burden if, big if, the government’s need for revenue was based on what it should be. Fantasy, I know.
One thing that should be done, is not just limiting the increases in assessed value, but limiting the *tax rate* increases. In other words, limit the actual dollar amount increases collected to a maximum fixed rate. There is no good reason, with this type of tax, that the government’s take (in raw dollars) should not be limited every year. IOW, if the county collected $800 from me last year, it can only collect up to 3% more from me this year. If my value goes up to a point which works out to a greater amount, then the rates have to be adjusted downward to balance it.
As it is now, the city says hmm, Child’s house value can only be raised 3%, so we’ll just raise the millage rate 10% to make up for that.
Consumption taxes are probably a more rational way to raise the funds. IF they result in the elimination of property taxes. A person on a fixed income is naturally going to spend less, having less disposable income to work with. Thus that person pays lower taxes. It also means that if I want to be frugal and save my money, the government can’t penalize me for doing that.
Again, all of our “solutions” only address how to rein in a particular tax. Which is like a water filled balloon. Squeeze it on one end and the other end expands. They will simply just get the same amount of money somewhere else. None of this goes to the root of the real problem. Restricting the government’s appetite for power over us and access to our money.
All good points.
I have mulled around, in my mind, another possible alternative, that being this:
You buy a house and pay, through the life of the mortgage, a fixed tax based on the value of the house. After a mortgage is paid off, the owner's tax is then locked in at the amount he paid in the last year (or average of last five). This then locks in the tax at, what should be, an affordable rate for the balance of his life.
if the owner chooses to sell, well, the game starts over, by his choice.