[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.

[scarface74]

What’s “predictable” about having to pay taxes on a property that you don’t know how much will appreciate? Someone who bought a house 30 years ago while they were working, paid it off and had enough in savings to pay their bills but not pay taxes on a house that went up 10x the rate of inflation couldn’t predict their tax bill.

What happens when they can’t pay their taxes? The government takes it.

[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.

[scarface74]

Money is a fungible commodity but a house isn’t. You can’t sell part of a house. If that’s where all of your wealth is.

You