| I'm trying to envision the details and consequences of the alternative system of property taxes which you have in mind. Are you suggesting a system where adjustments to property taxes only happen each time property is sold (i.e. when speculation of a property's change in value becomes real)? Or are you suggesting a property tax system driven by need, rather than based on the value of the land? The neighborhood needs a new school, so everyone's property taxes are up that year? The part of your argument which I agree is a bummer is the variability and unpredictability of property taxes, and how that disrupts one's ability to plan and set up something permanent (i.e., retire to a workshop out in the woods -- a sudden increase in value would force you to pack up shop and sell). However, while I agree its a bummer, I disagree with your unreasonable and unethical angle. Imagine a neighborhood where someone bought a house for $50k in the 1980's, and it is now worth $2 million. Should he still be paying property taxes based on the $50k sale value? How is it reasonable or ethical that the owner of that house should get away with paying a tiny, tiny fraction of the property taxes which his neighbors (who just bought the place next door for $2 million) are paying? Edit: I think what I'm saying is that any alternative system I can imagine is only going to encourage dynasties -- you live in the house your ancestors bought in the 1800's because it allows you to pay $10/yr in property taxes. Same goes for businesses -- stubborn mom-and-pop shops just barely staying afloat downtown could prevent skyscrapers from being built, etc. |