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by msandford
4108 days ago
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Education is almost 100% funded by property taxes and sales taxes. Property taxes are a tax on the value of the property, not on your income or your equity in the property, but based on the "fair market value" of the property. Sales tax is based on the value of the transaction. Everyone lives somewhere, and somewhere basically always has a value attached to it. Maybe run down apartments aren't worth as much as fancy new ones, but property tax still has to be paid. Even if you rent, you still pay property taxes. The owner of the apartment considers property taxes as a part of his/her expenses the same way a mortgage, insurance, maintenance, etc are expenses. Those expenses get rolled into the rent. Sales taxes are largely regressive, because any money saved is by default not going to get any sales tax applied. And poor people spend a larger portion of their income on things which are taxed than wealthier people do; look at the whole "buying experiences" advice that well-to-do participate in. Those are generally arranged as "services" which aren't taxable, rather than products, which are. Progressive taxes are generally based on income, not property value or transaction value. As a result, funding for education is currently borne fairly evenly amongst people who both have an address and buy things, no matter their income level. |
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