Abolishing Property Tax?

[cyphur]

I would rather be able to contest my property taxes, or personally manage my discretionary spending, than pay income tax. Income is not something I am willing to modulate in order to pay less taxes.

With that said, dropping property taxes down a bit and upping the ante on luxuries would be an interesting conversation. The problem then becomes, what is a luxury? My definition of a luxury may be a staple for others, or perhaps what others consider luxuries, I would consider staples.

Should firearms be a luxury or a staple? I would say staple, but I am sure someone who owns no firearms would disagree. What about a Corvette? I would argue against a corvette being a luxury, when an Aston Martin or Maserati is obviously far more expensive and bears less utility on a daily basis. Yet, many would likely say they are all luxuries. What about nice watches? Finer clothes? Fine dining?

Some might say - anything that is not groceries, gas, or medical care should be covered under a luxuries tax. I would disagree with this, but their argument would be discretionary spending above poverty level should incur the new tax - whereas my counter would be - then how do people on welfare afford these things?

Invariably it turns into class warfare and large swaths of people become disenfranchised over said new tax.



As Chas has made clear - if the Government is going to cut spending, they need to consider cutting services. Simple as that.....


I completely agree with urnoodle - any learning I've done after leaving a private school in NY at the age of 12 has been done on my own. It certainly did not occur as a result of attending public schools in Texas(well, except maybe Biology class. I doubt I would have dissected a frog that methodically on my own). I am not trying to be a snob, but the culture in public school certainly has nothing to do with education. I'd gladly home school my children, and they would learn twice as much in half the time.

[Scott in Houston]

I always prefer a consumption tax over income tax... it allows you to save when you need to, and keep what you need.
Both property taxes and sales taxes hit that side of the coin. If we ever move to income tax... bad news for Texas.

[srothstein]

There are a few points to consider. First, the property tax does not fund anything at the state level, just at local levels. It is the primary means of financing schools, city and county governments, and most of the special service districts (hospital districts, crime districts, utility districts, etc.). So, any change in property tax MUST include how you will fix school finance.

And second, to give you and idea of what is involved, 47% of all taxes raised in Texas at the state or lower levels comes from property tax. That includes money from the sales tax, entertainment taxes, franchise taxes, excise taxes, severance taxes, etc.

So, figure that a sales tax would have to more than double to keep the same income level. Of course, the level could be slightly lowered by adding more things to the sales tax. Or we could use a state income tax to replace it. And yes, there are some services we might be able to cut, but I don't think we would agree on them any more than we would agree on how to replace the tax.

I do not see the property tax as the worst possible tax, even though I hate the idea of renting property from the state. I do like flat taxes, so I think we could improve the tax by doing away with all exemptions and breaks on it.

Of course, my proposal for fixing school funding is to do away with school district taxing authority and go to one statewide property tax dedicated to school funding. Decide how much is needed per student, how many students there are, and how much property there is. That gives you a uniform tax rate for across the state. Then it gets divided to the school districts based on how many students they have.

[urnoodle]

I disagree with removing exemptions however I agree with removing the commercial breaks that are often given to large corporations. My biggest complaint with property taxes is the ISD portion. They are not assessed equally. As I previously mentioned I don't have children, however, I pay the exact same ISD tax as a neighbor who has the same size house with the same value but who has 4 children using the public school system. I've heard the argument that I should invest in the future by helping to provide an education to children who will be contributing to the future economy. Everyone needs to invest in that future but my burden should not be more than that of the parents of those children.

[cyphur]

There are a few points to consider. First, the property tax does not fund anything at the state level, just at local levels. It is the primary means of financing schools, city and county governments, and most of the special service districts (hospital districts, crime districts, utility districts, etc.). So, any change in property tax MUST include how you will fix school finance.

And second, to give you and idea of what is involved, 47% of all taxes raised in Texas at the state or lower levels comes from property tax. That includes money from the sales tax, entertainment taxes, franchise taxes, excise taxes, severance taxes, etc.

So, figure that a sales tax would have to more than double to keep the same income level. Of course, the level could be slightly lowered by adding more things to the sales tax. Or we could use a state income tax to replace it. And yes, there are some services we might be able to cut, but I don't think we would agree on them any more than we would agree on how to replace the tax.

I do not see the property tax as the worst possible tax, even though I hate the idea of renting property from the state. I do like flat taxes, so I think we could improve the tax by doing away with all exemptions and breaks on it.

Of course, my proposal for fixing school funding is to do away with school district taxing authority and go to one statewide property tax dedicated to school funding. Decide how much is needed per student, how many students there are, and how much property there is. That gives you a uniform tax rate for across the state. Then it gets divided to the school districts based on how many students they have.

I would rather fund my local school than somewhere else. You cannot raise education to the level we need it to be by spreading wealth around. It's a sad fact but impoverished areas will remain so without redistribution, but to do so at the expense of the more affluent areas' education resources is equally absurd.

Of course, this stands to reason that it would be more beneficial for society to give impoverished areas a slice of excess funds than build a new stadium, but to mandate it to where local schools cannot elect to reinvest in their own district towards legitimate educational goals is equally appalling on the other side of the isle.