Full agree. Even if only like 5% of $1M-$10M then marginally increase like income.
The government would have to be competent and implement rules to close legal tax avoidance strategies though, and I don’t expect under the current environment anything could happen.
Seems to me that for property not used for commercial ventures, tax based on the value of the land and non-residential structures. I think this would provide a way to moderating wild fluctuations in the “housing market” and allow for gradual increases in value that land still tends to have.
This cannot possibly be true. It just cannot. It is insane to think so.
I don’t read my property tax forms too closely. But does the value of the land not scale with gentrification? Is most of the appreciation assigned to the structure? I feel like land is just as expensive in gentrified areas.
I just looked this up to verify my assertion.
Illinois lost 219 people per day in 2020 -that’s 80,000 total for the year - according to this state government website: Illinois sees second-largest population loss of U.S. states - CMAP
The good news is that real estate prices may be depressed in Illinois compared to other states because there are more sellers than buyers.
That’s not true. Nor it is 219 people deciding to move. Included in that are children who have really no say in whether the family moves or not.
I think the better metric is how many households are leaving.
In Ontario, property taxes include a large school component. However funding for schools is done at the provincial level, mostly on a per-pupil basis.
It works well to eliminate large differences in schools. Not completely, because areas with heavy poverty or large numbers of immigrants who don’t speak English cause some fluctuation, but generally there’s low variance.
Sending our kids to a small rural school wasn’t even a consideration. The education they get is comparable to anywhere else we could’ve moved to.
See? Communism just works.
Well, OK. The population declined by 80,000 last year. That is not subject to debate.
Illinois passed a series of state income tax hikes during the 2010s such that the state income tax at the end of the decade was 65% higher than the beginning of the decade. People are leaving and dying. Population growth is not sufficient to overcome the leavers or diers.
I just looked up our property tax breakdown:
Out of every dollar collected by the Township $0.25 is retained while $0.55 goes to the Region of Waterloo while the remaining $0.20 goes towards the School Boards.
But yeah State and Local Government need money some how to operate.
I think some place and it likely varies wildly by location have various waivers that may apply based on age and or income but not all locations do wrt to property taxes.
Well in CA that’s prop 13 which comes with it’s own set of issues. Here is me and 2 neighbors property tax from zillow. We all have similar homes with some small differences and what the annual property taxes are:
~$1,500
~$4,500
~$6,300
And a neighbor down the street with a slightly larger and more expensive home but who moved in more recently
~$9,400
That seems okay to me. It incentives people to put down roots and stay in a community.
we should just implement a net worth tax, and drop the income tax. This would be fairest. So why can’t we do this?
and put a huge exemption on your property if it is your sole residence
People with a high net worth will just leave, and you will collect very little revenue. So why bother?
Tax policy is not only about collecting revenue. It is about the long term encouragement of productivity for/of a community. The more you tax people, the more you encourage them to not do the thing that is taxed.
so this will incentivize people to not get rich? I find that unlikely.
also, if u peg the net worth to earnings made in the country, it can be taxed no matter where the person lives
And the US is one of the few countries that tax your income no matter where you live in the world. They can easily do the same with any kinds of tax. Not to mention moving is not as easy as one might think due to emotional ties, and not everyone in your family may be rich
This seems difficult. Does my house count? Mortgages are deducted? Collectibles like antiques, paintings, classic cars? Only employment income or also investments? Are we looking into everybody’s bank account? (which recently caused an uproar). Do I store everything in NFTs?
u talkin tax evasion? it’s as old as taxes themselves
Tax avoidance, my friend. Tax avoidance.