Saturday, February 28, 2009

Robin Hood or John Hancock?

What follows is a proper proposal for the organization and execution of property taxes.When the Declaration of Independence was signed it was to refute a government that didn't belong to the people. It was to refute any right said government claimed for taking their property (specifically by means of taxation). It is puzzling then, today, that so many Americans are run out of their homes and off their lands by this government that was intended to secure those very rights. And more puzzling is that nothing is done about it--shy of complaints from many.May I say that complaints and blame placing have never solved a problem. Propositions, however, can pave a way to solutions; though they be not solutions in and of themselves.The main problem is not simply that people lose their homes, or land, or other property. Many in America deserve to lose what they have. Many in America live too far outside of their needs. Many in America have moved themselves financially outside the reach of any life preserver we may toss them and their property. It is not to these that I address my proposal (nor would it help them in any case). Rather my comments are for anyone willing to listen with active ears, and the same comments are in benefit of those who, like many of my in-laws here in upstate New York, are being forced from their land and property by the continuing rise in taxes. Mind you these are lands families have held for years, upon which they have labored year after year to make as valuable as they now are. Never have they grown remarkably more wealthy, nor has anyone ever given them any property handout. The value of their property is the value of the family's work ethic (Unfortunately you can't, apparently, spend work ethic to pay for your property taxes). As a result, many can no longer afford to live on their lands or in their homes. They are being told that their homes, land, and neighborhoods have become too elite for them and they'd be better off seeking lodging in a 'less ritzy' part of the land. Now does that sound like the America or the government that blood was spilt for?I have nothing against our government asking much of us. But our government cannot justifiably ask more from us than we can reasonably give. Somewhere along the lines that concept has been lost. I place no blame. Now that you have my mind, here is my proposal.Inflation, we're told, will never stop. It will become increasingly more costly to run schools and states and governments. This point I cede. What is paid today in taxes will not suffice ten years from now. So as cost goes up, so must taxes. Sadly our own payroll doesn't follow suit. The rising taxes can never, if we are to do justice, chase an honest and responsible family from their home.Today taxes are based on third party assessments which we won't even jokingly call unbiased. We know how the program works. Each year someone tells us our home is worth more than it was previously and as a result we need to pay more in taxes. Okay fine--to a point. That point is whatever can be deemed a reasonable percentage of a family's joint income for the year. We can figure this out based on taxes (for any who would refute that, take a seat, because for years the government has regulated what is considered a safe percentage of income to invest in a mortgage).As a model, we'll say 5% is the reasonable limit. Now that may or may not be true, but we'll use it.Up to 5% of one's income can be spent on property taxes and still allow enough for the family to meet it's needs. Now this does not mean that we will always be spending 5%. Let's say today we pay 3% of our total income. As inflation goes up, our property increases in value, and our taxes go up. So in five years we pay 4% and in eight years we pay 5%. We've now reached the limit. We have given all that we can reasonably give and still maintain our property. If our income increases, then that 5% as well will represent more money for our government and schools. So long as we continue in the same house on the same land, that limit would never be passed. Also, if by our own poor planning we live outside our means and can no longer afford even the 5%, then the loss of our property becomes our own doing, or by loss of a job becomes employment's doing. In short, we would never be forced to leave our land by our own government and community.Now, how do we account for all the monetary needs of the land and schools if no one pays above 5%? Answer: taxes continue to increase on property. As you live in your home and it's value increases (whether due to inflation or your own hard work and construction) your property tax assessment goes up. You, of course, cap at 5%. In reality, the tax assessment is 8 or even 10% of your earnings. You don't have to pay it however, so long as you continue in your same home on the same land. If you choose to move, however, you open yourself up for new taxes. When you find a new home if the assessment is lower, then again maybe you pay only 4% and cap at 5% later. If you choose to move into a nicer home, however, and the taxes are 8% of your income, then that is your choice. You cap there at 8%, it won't go any higher, but then if it becomes too much for you, again it is your doing and not that of our government or communities or schools. Finally, those who move in to your home that you just sold must pay the tax assessment on the home (what was 8 or 10% of your income and you only paid 5%). In this way taxes continue to go up, the market stays alive, but those who choose to keep to their land and work away at it every day of their lives, bettering it and making it more valuable, are never threatened with expulsion by taxes they cannot afford. Our America should never do that to a person. Not when land was and always will be one of our greatest assets and properties and freedoms.Now I don't know that this answers all the problems. I don't know a lot, in fact, and I understand that there may be holes in this proposal, but that is why it is merely a proposal. It is there to make people think, and to think differently. I welcome and invite any criticism, additions, or otherwise. I thank you for your activism.

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