Government officials ALWAYS complain that there’s not enough money, that the public is basically selfish for not turning over more of their paychecks to the experts, who will spend the money on really important things (i.e., their salaries and pensions). Well, in the past few years, those same officials haven’t stopped whining, yet they never mentioned that governments are awash in money thanks to the real estate boom.
Here is an article from the Tax Foundation:
Property tax collections have exploded over the last four years according to a new report by Gerald Prante, an economist at the Tax Foundation.
Adjusted for inflation, property taxes have increased by twelve percent, Prante said. “It’s about 27% in nominal terms since 2000.” By comparison, property taxes increased by just two percent from 1994 to 2000.
Prante discussed his report and the way property taxes are levied in the Tax Foundation’s most recent Tax Policy Podcast.
Property taxes, he said, cause outrage amongst many Americans for a couple reasons. “It’s a highly visible tax,” he said. “Either it’s in their mortgage or, in many cases, you write a one-time huge check to the government.”
The second reason is that we generally know how property taxes are spent and can evaluate their usage easily. “It’s basically schools and roads. People can see the performance of those government expenditures.”
Soaring property taxes around the country have pushed lawmakers to seek reforms. In states such as New York and New Jersey, where property taxes are the highest, legislative sessions beginning next spring will attempt to address taxpayers concerns.
