TIME FOR THE REAL ESTATE TAX TO GO!
LIFE, LIBERTY AND PRIVATE PROPERTY
There was a time in America, before the income tax, that all taxes were either tariffs or a tax on acreage that in an agricultural society were an indication of ones ability to pay taxes. That has not been the case for nearly a century. So here are some reasons why it is time to eliminate the real estate tax.
1. Americans have long believed in the principle of private property. This was ingrained by their experience in feudal Europe where all property belonged to the King and the aristocracy. The rest of the population was allowed to keep a share of their labor for the use of the elites property. Article 1 of the Pennsylvania constitution states: All men are born equally free and independent, and have certain inherent and indefeasible rights, among which are those of enjoying and defending life and liberty, of acquiring, possessing and protecting property and reputation, and of pursuing their own happiness. The real estate tax eliminates the principle of private property, in effect all property belongs to the county and the school district, which allow the citizens to live there in exchange for paying their annual rent.
2. Real estate taxes are discriminatory. They force one class of citizens to pay for benefits that are enjoyed by the whole of society. The tax burden for education and county taxes should be spread out among all citizens, based on their ability to pay taxes.
3.Real estate is the single largest asset of the majority of citizens. Over the lifetime of most owners the property tax will nullify the value of this asset almost entirely. Example. $4500. annual property tax x 40 years=$180,000, on death add realty transfer tax and inheritance tax and we see there is no asset left, in effect the principle of private property has been eliminated.
4. Real estate taxes create a high basic overhead for all business's in the state, whether through direct taxes or through very high rents on commercial property. These taxes are required even when there is not a profit. This creates a competitive disadvantage for business in the state who are in competition with business in other states. This has contributed to the economic decline of Pennsylvania.
5. State contributions to school districts is now inequitable, some districts receive over 80% of their funding from the state while others less than 25%. This further puts pressure on the property taxes of those districts perceived to be more wealthy.
So, there are 5 good points as to why the Real Estate tax should be eliminated and replaced with a more equitable tax structure that is broad based and based on the citizens ability to pay.
3.Real estate is the single largest asset of the majority of citizens. Over the lifetime of most owners the property tax will nullify the value of this asset almost entirely. Example. $4500. annual property tax x 40 years=$180,000, on death add realty transfer tax and inheritance tax and we see there is no asset left, in effect the principle of private property has been eliminated.
4. Real estate taxes create a high basic overhead for all business's in the state, whether through direct taxes or through very high rents on commercial property. These taxes are required even when there is not a profit. This creates a competitive disadvantage for business in the state who are in competition with business in other states. This has contributed to the economic decline of Pennsylvania.
5. State contributions to school districts is now inequitable, some districts receive over 80% of their funding from the state while others less than 25%. This further puts pressure on the property taxes of those districts perceived to be more wealthy.
So, there are 5 good points as to why the Real Estate tax should be eliminated and replaced with a more equitable tax structure that is broad based and based on the citizens ability to pay.
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