[harryh]

I thought the purpose of tax was to fund the government. Not to take stuff that other people wanted.....

Property taxes are among the most economically efficient taxes that exist. They are an excellent way to fund the government.

[scarface74]

How are they "economically efficient"? It doesn't cost anymore to serve someone in a million dollar home than a $200K home. Besides that you get into situations where richer neigborhood have better services, better funded school systems, etc.

[harryh]

Because they don't discourage otherwise positive economic activity.

[scarface74]

Do you feel the same way about the government taking private property via eminent domain to build a Walmart?

[harryh]

No.

[scarface74]

What's the difference? Either way you're taking property for "positive economic activity". A Walmart can bring more jobs than a group of houses....

[tptacek]

One obvious difference is that property taxes are applied uniformly and predictably --- a whole industry exists to plan around them --- and eminent domain is not, so widespread application of ED would create uncertainty that would discourage positive activity.

[harryh]

In addition to what tptacek said, taxes are paid with money which is an infinitely fungible commodity. Eminent domain confiscates a specific piece of property that cannot be precisely replaced.