• MetalMachine@feddit.nl
    link
    fedilink
    English
    arrow-up
    0
    ·
    4 months ago

    Property taxes always made me think that you don’t actually own it, rather its a different form of rent based on property value. I know its the not the same as renting as you have stored value if you sell, but its difficult to call it “ownership”

  • deegeese@sopuli.xyz
    link
    fedilink
    arrow-up
    0
    ·
    4 months ago

    I don’t understand inflation, so as an old landowner I think I shouldn’t have to pay taxes.

      • naeap@sopuli.xyz
        link
        fedilink
        arrow-up
        0
        ·
        edit-2
        4 months ago

        What’s wrong with that?

        Edit: despite that peyote shouldn’t be just gathered on the wild, because they’re protected

    • hemko@lemmy.dbzer0.com
      link
      fedilink
      English
      arrow-up
      0
      ·
      4 months ago

      It is kinda fucked up if retired are forced to move out from their house via taxation. Only ones who benefits are real estate companies

      • deegeese@sopuli.xyz
        link
        fedilink
        arrow-up
        0
        ·
        4 months ago

        That’s the fictional boogeyman used by the rich to gut public services. See the Howard Jarvis Taxpayer association and California prop 13.

        The tax cuts go to the rich and corporate land owners.

        • AlexWIWA@lemmy.ml
          link
          fedilink
          English
          arrow-up
          0
          ·
          4 months ago

          We could put the stipulation that you’re only exempt from tax increases if the unit is owner occupied, they’ve been there for at least five years, and the resident is retired.

          • deegeese@sopuli.xyz
            link
            fedilink
            arrow-up
            0
            ·
            4 months ago

            We could also limit the exemption to modest homes, but instead California gives it to mansions and shopping malls too.

            If you’re rich, pay your damn taxes.

        • Maggoty@lemmy.world
          link
          fedilink
          arrow-up
          0
          ·
          4 months ago

          We could always, also tax the wealthy. This is not fictional. Retired people in the US are facing a crisis as they’re priced out of housing because their social security is fixed and housing prices are skyrocketing.

    • Maggoty@lemmy.world
      link
      fedilink
      arrow-up
      0
      ·
      4 months ago

      Property taxes do hit retired people differently though. Taxing based on what the government says your land is worth instead of your income is absolutely meant to create opportunities for real estate agents and developers at the expense of the people living there.

      • deegeese@sopuli.xyz
        link
        fedilink
        arrow-up
        0
        ·
        4 months ago

        Taxes based on assets tax those with assets, instead of income taxes which tax those who work.

        If old man owns such a valuable piece of land, he deserves to pay his fair share for the public services he used.

        It’s like saying you don’t want to pay for schools because you’re not a student.

        • Kroxx@lemm.ee
          link
          fedilink
          arrow-up
          0
          ·
          4 months ago

          Gotta be one of the most dogshit takes I’ve ever seen, hope you’re evicted one day!

        • Maggoty@lemmy.world
          link
          fedilink
          arrow-up
          0
          ·
          4 months ago

          The fact that schools are funded by the surrounding area is crap and needs to change. He’s retired with a social security income. He paid into the system his entire life already. Telling him he must sell and move out because he’s not wealthy enough is exactly what we should be working against. It’s a system by the wealthy, for the wealthy.

          • partial_accumen@lemmy.world
            link
            fedilink
            arrow-up
            0
            ·
            edit-2
            4 months ago

            The fact that schools are funded by the surrounding area is crap and needs to change. It’s a system by the wealthy, for the wealthy.

            Unless there is an article or background on the guy in the picture you’re projecting a HUGE amount of stuff you just made up on that guy.

            He’s retired with a social security income.

            That’s what his sign says. I take him at his word on that one.

            He paid into the system his entire life already.

            Well, no he didn’t. He didn’t start paying into it until he started earning money. Likely for the first 18 years of his life, he lived of what other people put into the system. Many of those people that paid for him are in the situation he’s in right now, except now he sees it as unfair.

            Telling him he must sell and move out

            No one is telling him to move out. He certainly isn’t saying he will be forced to move if he has to continue to pay property taxes. You just made that up.

            because he’s not wealthy enough is exactly what we should be working against.

            He’s not saying he is not wealthy enough. You just made that up. In fact, his sign is indicating he does have he wealth to cover the property taxes via his Social Security. He’s saying he doesn’t’ believe he should have to pay anything one something he bought decades ago while he continues to enjoy the services of the city and society the tax dollars pay for.

            • Maggoty@lemmy.world
              link
              fedilink
              arrow-up
              0
              ·
              4 months ago

              No, that’s how American K-12 schools are funded. That and infrastructure. Which is why poor areas have worse schools and roads; and police from outside their tax area. Which is both a great way to punish the poor in the old school protestant fashion and force them out the second the wealthy want their land.

              And you know exactly what I mean by paying in his entire life.

              Finally, paying half your income on property taxes is not financially sustainable. It’s ridiculous to me that you would even pretend it is.

              • partial_accumen@lemmy.world
                link
                fedilink
                arrow-up
                0
                ·
                4 months ago

                No, that’s how American K-12 schools are funded.

                Partially true, but not absolutely. K-12 in many places in the USA are funded through property taxes. I’m in the USA and my public school system is funded via income tax. No property taxes go to school.

                That and infrastructure.

                True in some places. False in others. Some places derive income from high property taxes. Other places choose high sales taxes. Yet others do it on income tax.

                Which is why poor areas have worse schools and roads; and police from outside their tax area. Which is both a great way to punish the poor in the old school protestant fashion and force them out the second the wealthy want their land.

                Again, partially true. Some states have state taxes that fund various projects at the municipal level irrespective of the wealth of the locality.

                I don’t disagree that a more equitble system for funding schools should be designed and implemented, but you know know that because I’m trying to have that discussion with you in another thread and you’re weak as water on that and won’t discuss any specifics except “someone else should pay”.

                And you know exactly what I mean by paying in his entire life.

                I know your words on that don’t match reality, and you’re skipping a really important part of that reality. I’ll admit I was wrong one part of that. I said he likely started “paying into the system at age 18”. We know thats wrong. His sign tells us he built his house at age 25. Age 25 is when he would be first paying the property taxes he’s complaining about. So he’s spent even less time paying into the system and already wants to be except from it for the society benefits he still gets.

                Finally, paying half your income on property taxes is not financially sustainable. It’s ridiculous to me that you would even pretend it is.

                Again, you’re making stuff up from nothing. What are his expenses? He owns his house. He’s retired so his healthcare is covered by Medicare. If he’s living on just social security he’s likely not even paying income tax because his income is low. What are his other expenses? Food? Clothing? Electricity? Water? He might have a well and not even have that bill. Are you saying half his income can’t cover those things? Further, we have no idea what he earned in life. Did he spend it on stupid stuff? We don’t know. I’m certainly not claiming any of my assumptions of him as fact, but that isn’t stopping you from doing so.

          • bizarroland@fedia.io
            link
            fedilink
            arrow-up
            0
            ·
            4 months ago

            Of course you are looking at outliers and I feel like you’re right to the point that outliers like that should have special assessments or breaks.

            Where I live, the taxes are pretty high for real estate, but if you are a senior citizen, you can get a discount where your tax rate is locked in at the value that it was when you retired.

            I also have some acquaintances who inherited a house and at the time houses were very cheap but they didn’t pay the taxes and they were super upset that they were going to lose their house because they didn’t pay the taxes.

            So now they’re bunking up and living in apartments and Scattered because they didn’t want to drum up the two or three thousand dollars a year in real estate taxes that they had to pay to keep an entire house.

            • Maggoty@lemmy.world
              link
              fedilink
              arrow-up
              0
              ·
              4 months ago

              Yeah and those laws are great for keeping people who want to age in place in their homes. Unfortunately they aren’t the norm. Usually it’s just a discount but it still goes up.

      • partial_accumen@lemmy.world
        link
        fedilink
        arrow-up
        0
        ·
        4 months ago

        If you want to get reductive, you never truly own it even if you live in a society where there is no tax.

        The rule of law that allows the concept of private ownership to be upheld in society runs on tax dollars. If you take away all of the tax dollars, the mechanisms that define and enforce the rule of law go with it.

        In a completely tax free society someone can just kick in your door of your house and shoot you, and now they own your house. Who will stop the thief/murderer? There’s no police, no courts, no judges, no jails. If instead of an individual its a foreign nation, there’s no military to defend your nation’s borders. All of that comes from tax dollars. So even then you never really own your own house because someone can take it (and your life) away from you.

        • cheers_queers@lemm.ee
          link
          fedilink
          English
          arrow-up
          0
          ·
          4 months ago

          there have been entire civilizations that didn’t rely on taxes and cops, and they managed just fine. this is a Western/colonial mindset.

    • HikingVet@lemmy.ca
      link
      fedilink
      arrow-up
      0
      ·
      4 months ago

      5? I bought my house a decade ago and it has almost doubled. If he built his house for less than his current property taxes, he would easily get 10x if not higher.

      • Justin@lemmy.jlh.name
        link
        fedilink
        arrow-up
        0
        ·
        edit-2
        4 months ago

        the sign says that property tax each year is a third of his original house cost. Assume he lives in a place with insane 15% property tax:

        x*0.15*3=1
        x=3*6
        x=18

        His house is worth 18x or more what he paid to build it.

  • michaelmrose@lemmy.world
    link
    fedilink
    English
    arrow-up
    0
    ·
    4 months ago

    Comparing property taxes now in 2025 dollars to unadjusted original cost in 1950 dollars is nonsensical. The two numbers bear no relation nor should they.

    The average social security check is $1,978 a month or $23,736 per annum. Half of that is $11,868. Lets suppose he lives in CA where the annual rate for owner occupied is 0.74%. His house would be worth approx 1.6 million dollars. To to be clear he is whining about paying the appropriate and legal tax on his fully owned 1.6M cash hoard. This is a great problem to have.

    If its that burdensome he can cash out and even with rent payments for the rest of his life live great even if he has no other savings of any sort.

    Looks like about $5800 a month gradually increasing with inflation for at least 25 years.

    If he has another $400,000 which seems super likely since I don’t think he’s actually living in his 1.6M house on $12,000 a year it could be more than 7500 a month.

    If we add a little realism and only include another 15 years he could probably actually withdraw about 11,000 a month.

    https://www.kiplinger.com/retirement/social-security/average-monthly-social-security-check https://www.tax-rates.org/taxtables/property-tax-by-state

    • shortrounddev@lemmy.world
      link
      fedilink
      English
      arrow-up
      0
      ·
      4 months ago

      I think it’s the moral issue of having to cash out your own property to afford to live in something you built and already own

      • RememberTheApollo_@lemmy.world
        link
        fedilink
        arrow-up
        0
        ·
        4 months ago

        Seconded. This is inaccessible net worth. It is useless to someone who cannot take advantage of it. Sale would incur capital gains, which would be significant, and finding another property to live in would be just as unaffordable.

      • michaelmrose@lemmy.world
        link
        fedilink
        English
        arrow-up
        0
        ·
        4 months ago

        Property tax funds important things like schools, emergenct services, etc.

        if he was destitute otherwise would already have sold it. You are arguing in favor of a tax break for some rich prick probably worth north of 3 million not paying the taxes that pay for your kid to get a decent education because basically feels.

        Its no more immoral than you giving up your income.

        • shortrounddev@lemmy.world
          link
          fedilink
          English
          arrow-up
          0
          ·
          edit-2
          4 months ago

          I argue that we should replace property taxes with income taxes because property taxes lead to disparities in outcomes between different jurisdictions. Then an old man can be secure in his own property without depriving the public of funds.

          And I disagree with your premise that property taxes pay for a decent education. We don’t have decent education in the United States and I truly believe that no amount of money will fix that

          • glockenspiel@programming.dev
            link
            fedilink
            arrow-up
            0
            ·
            4 months ago

            The wealthy often have near zero or net negative income. It’s one reason why income taxes are optional for them but property taxes ultimately aren’t.

        • faythofdragons@slrpnk.net
          link
          fedilink
          English
          arrow-up
          0
          ·
          4 months ago

          There is no way you can convince me that gentrification is actually good for kids. Property tax funding education does nothing but punish poor families.

          • UnderpantsWeevil@lemmy.world
            link
            fedilink
            English
            arrow-up
            0
            ·
            edit-2
            4 months ago

            Property taxes funding education, in a state like Texas where school districts are seized by the state and systematically dismantled by private equity interests operating in state-appointed positions, is a fucking joke.

            This isn’t strictly an issue of taxation. Its an issue of (un)representative governance forcing people into a privatized model by leveraging the pain caused through dysfunctional public services. “Oh oh! Crimes up! We need even more cops! Oh oh! Schools are failing! So we need more… checks notes football stadiums and administrative offices.”

            It’s deliberate mismanagement intended to destroy confidence in public institutions.

        • seejur@lemmy.world
          link
          fedilink
          English
          arrow-up
          0
          ·
          4 months ago

          Property taxes on your first house should not be steep. On your other houses on the other hand…

    • UnderpantsWeevil@lemmy.world
      link
      fedilink
      English
      arrow-up
      0
      ·
      4 months ago

      Lets suppose he lives in CA where the annual rate for owner occupied is 0.74%. His house would be worth approx 1.6 million dollars.

      That’s largely due to the property inflation from the tech sector and not consistent across the state. You could be in San Fransisco and see your land 10x in value as the city explodes around you or you could be at the ass end of Oakland or the rural east end and still live in a slum.

      This guy could also be from Texas - in the exurbs of Austin, Dallas, Houston, or El Paso - and be looking at closer to 1.5-2% annual rates. Very possible he acquired some dirt cheap land in Beaumont or Bexar County only to see his $5k plot balloon to $100-200k over the course of 20 years.

      • glockenspiel@programming.dev
        link
        fedilink
        arrow-up
        0
        ·
        4 months ago

        Either way for California he wouldn’t be affected because Californiamnproperty taxes are effectively snapshotted at time of purchase and grandfathered for people like him. If he truly bought or built 50 years ago and ows it outright then prop 13 has long capped what he pays decades ago.

        People like him, in California, are subsidized by the modern generation who don’t get capped by prop 13. And when he sells that house it’s value gets assessed at current market value and full taxes are due from the buyer.

        Put shortly, his story is likely bullshit if he’s from California. And people without houses and salty about it need to do some research.

  • finitebanjo@lemmy.world
    link
    fedilink
    arrow-up
    0
    ·
    edit-2
    4 months ago

    There are a lot of people suffering right now to the extent that his plight seems so frivolous.

    I’ll bet hes a republican voting for deficit which results in raised taxes on people like himself and cuts for people far richer than him.

  • SoulWager@lemmy.ml
    link
    fedilink
    arrow-up
    0
    ·
    edit-2
    4 months ago

    Eh, probably paid like 25k for a house that’s worth 500k now or something. Really what we need to do is make property taxes scale more aggressively, so it isn’t economical to hoard more resources than you can actually use. Maybe something like annual tax owed = (value of all real estate owned by one person)^2/10,000,000. Perhaps with a grace period for new construction/renovations.

    As for appraisal, let people declare what their property is worth, and force them to sell if someone offers 50% more than their claimed value.

    • Korhaka@sopuli.xyz
      link
      fedilink
      English
      arrow-up
      0
      ·
      4 months ago

      Investment company comes in and buys literally everything because they can just offer 20% over value. Now they rent it out for twice as much as your mortgage cost. What are you going to do, not like there are any other houses left.

      • SoulWager@lemmy.ml
        link
        fedilink
        arrow-up
        0
        ·
        edit-2
        4 months ago

        Think about what the investment company’s tax rate would look like. They’d be bankrupt instantly. They’d have to pay 10M/year in taxes to maintain ownership of $10M in property.

          • SoulWager@lemmy.ml
            link
            fedilink
            arrow-up
            0
            ·
            4 months ago

            So rent is several times more expensive than a mortgage on the same property. Now what?

            • boonhet@lemm.ee
              link
              fedilink
              arrow-up
              0
              ·
              4 months ago

              Now you pay the ridiculous rent because blackstone just buys up entire neighborhoods already, might as well buy up entire towns.

              • SoulWager@lemmy.ml
                link
                fedilink
                arrow-up
                0
                ·
                edit-2
                4 months ago

                Why? You can force them to sell you a property and pay less on the mortgage than they pay on the same property on taxes.

                • boonhet@lemm.ee
                  link
                  fedilink
                  arrow-up
                  0
                  ·
                  4 months ago

                  Technically yes, but the problem is that they can afford to hold their investments in many small companies so they won’t even have to pay that much tax.

                  Just adding government oversight for this idea is going to be a costly nightmare.

        • piratekaiser@lemm.ee
          link
          fedilink
          English
          arrow-up
          0
          ·
          edit-2
          4 months ago

          That’s not how this works. A better solution would be to tax more aggressively second+ homes and severely limit what corporations can invest into.

          Why should a company be able to profit off of second hand housing? This isn’t a commodity, but it’s treated as such. Companies should be able to build new housing (for sale) and own housing only for the purposes of, say, housing their employees if they so wish. I simply see no benefits to allowing companies trade living spaces like stocks.

          • SoulWager@lemmy.ml
            link
            fedilink
            arrow-up
            0
            ·
            edit-2
            4 months ago

            The whole point is that you get to decide how much the property is worth to you. If it’s worth more to someone else, you’re both better off for the trade. The only losers here are people trying to cheat on their taxes by giving a “low” appraisal, and people trying to hoard multiple properties.

            Plug some numbers into that formula. If you own a $100k property, you pay 1k in taxes/year If you own 10 of those properties, you pay 100k/year. This would mean you have to charge more in rent than a mortgage would cost to buy the same property. The business model would become unprofitable.

            • piratekaiser@lemm.ee
              link
              fedilink
              English
              arrow-up
              0
              ·
              4 months ago

              I understand the logic of it, my point is that this is a trust/honesty based system which leaves you cornered. Here are some problems with it:

              • placing a low value on my house to pay less taxes exposes me to a hostile buyout
              • placing a realistic (e.g. around average for the region) price doesn’t solve the previous problem. I’m still in danger of a hostile buyout, while also paying higher taxes. What’s more, even if everyone else plays fairly, this additional % someone else paid to take my house is now the minimum added on top of their own valuation, driving prices up.
              • placing an unreachably high price would bankrupt me as I can’t pay the taxes, so there is no scenario in which this works out for me
              • given a realistic and unequal economy, there will be those who can’t afford to place a higher price on their house, i can just go and buy them out on sale, then rent them back to them (that one might sound familiar)

              The fault in your assumption is 1. that this would discourage corporations from buying up; and 2. That you live in an equal and just society;

    • Heyting@lemmy.ml
      link
      fedilink
      Nederlands
      arrow-up
      0
      ·
      4 months ago

      Socialise the housing market and make sure every person has a roof over their head. It’s the only proven solution to homelessness.

    • boonhet@lemm.ee
      link
      fedilink
      arrow-up
      0
      ·
      4 months ago

      As for appraisal, let people declare what their property is worth, and force them to sell if someone offers 20% more than their claimed value.

      Ah yes, force people to move out of their homes. What’s lemmy’s obsession with uprooting families lately?

      • SoulWager@lemmy.ml
        link
        fedilink
        arrow-up
        0
        ·
        edit-2
        4 months ago

        Land is a natural resource, and like air or sunlight, nobody deserves to own it more than anybody else.

        “But my family has live here for generations!” sounds awful similar to “I deserve it because my great great grandfather killed the people that used to live here.”

        You get to decide how much the land is worth to you. If you value it honestly and somebody else values it higher, a trade benefits both of you.

        • boonhet@lemm.ee
          link
          fedilink
          arrow-up
          0
          ·
          4 months ago

          I value your home more than you, now get the fuck out and find a new one.

          In fact going by your first sentence, this system isn’t even necessary. Why do you deserve to live where you do just because you paid some random person money? I deserve the land you’re living on just as much as you do.

          • SoulWager@lemmy.ml
            link
            fedilink
            arrow-up
            0
            ·
            edit-2
            4 months ago

            Money represents things you do deserve, like the value created by your own work, as well as things you have no moral claim to, like natural resources. What makes sense to me is that the land is owned collectively. The property taxes are effectively rent to the rest of the population, and those that consider it most valuable should get to use it. I also think there should be separate taxes for things that devalue the land, like extracting minerals. You can still make a profit from extracting minerals based on the value added by your own work, but you need to pay the rest of humanity for their share of the minerals themselves.

            Have to consider both the ideal and the existing situation for the best next step. Housing is a combination of value both created by human effort, and an accumulation of natural resources. I think what I’ve proposed is a big step towards fair allocation of housing, but critically, also something that could actually be implemented.

      • buddascrayon@lemmy.world
        link
        fedilink
        arrow-up
        0
        ·
        edit-2
        4 months ago

        Has nothing to do with “uprooting families”. Average American families are not the ones grossly overestimating the values of their property. It’s people like Trump who use overestimated values on their properties in order to hide money and grift people into paying him more than properties are actually worth. And then readjusting to actual values, or lower, in order to dodge taxes.

  • RunawayFixer@lemmy.world
    link
    fedilink
    arrow-up
    0
    ·
    4 months ago

    And this is why in most civilized countries, progressive income taxes make up the majority of the government budget. Basing taxes on non income/investment related metrics screws over the poor + lower middle class. It’s a transfer of wealth from the poor to the rich.

    • dreugeworst@lemmy.ml
      link
      fedilink
      arrow-up
      0
      ·
      4 months ago

      you could have progressive taxes on wealth as well. there’s a difference between having one house worth 500k and having 500 million in shares

      • Kazumara@discuss.tchncs.de
        link
        fedilink
        arrow-up
        0
        ·
        4 months ago

        True, you just need to make sure you start high enough up, or exempt the value of a primary residence (maybe limit the exemption to a non-opulent value of a house so the richest don’t start building castles to bind their money tax free)

    • Korhaka@sopuli.xyz
      link
      fedilink
      English
      arrow-up
      0
      ·
      4 months ago

      UK has property taxes too and its pretty shit tbh. Council tax, there are bands based on what your house was worth in the 90s (yes really…) and generally the poor will pay a higher % of their income. I have a pretty small bungalow, 60m². One of the lowest bands and pay £1600 a year on a house that cost £230k. The most you can have to pay is £4200, beyond that point regardless of how much more expensive your house is the tax rate doesn’t increase.

      The original plan of the tax was a fixed rate per person. This among other things is why many people were keen on the idea of digging a hole so deep that we could hand Thatcher over to Satan personally.

      • RunawayFixer@lemmy.world
        link
        fedilink
        arrow-up
        0
        ·
        4 months ago

        That has to be the most regressive tax I’ve heard of in western Europe. Absolutely excessive and I’m sorry it’s happening to you.

        Belgium has a home value tax as well, based on fictional rental income + a very convoluted calculation + different % surcharges per council. I find back that it’s on average about 700 to 800 euros per Flemish adult person, but it has large variations. It causes a lot of grumbling, but for most people it’s not considered excessive.

    • glockenspiel@programming.dev
      link
      fedilink
      arrow-up
      0
      ·
      4 months ago

      This doesn’t fit the narrative, but a lot of American states have lower effective property tax rates than European nations. There exceptions on both ends of this of course (like TX which is making up for a lack of income taxes).

      People should look them up and compare European nations to major us cities and states. Europe ends up with not only higher income taxes, but also higher property taxes overall. And a completely insane financing method like having adjustable rate mortgages being normal, locked only for a period of 3 to 5 years before basically being forced to refinance. Little wonder that property ownership rates are generally so far below american ownership rates.

      No system is perfect and people with means tend to find every flaw in them (and plant those flaws if they are wealthy enough). But people really need to remember that the grass is always greener because of all the manure.

      • RunawayFixer@lemmy.world
        link
        fedilink
        arrow-up
        0
        ·
        4 months ago

        If you try to take too many eggs out of 1 basket, the person carrying that basket is likely to try and run away. So it’s easier and less disruptive to take a few eggs out of lots of different baskets.

        Taxing accumulated capital without exceptions is also guaranteed to screw people over. The man in the OP is a good example: he’s a modest man who many years ago bought a modest house for a modest sum of money. Due to circumstances, that house has now increased in value, making him a wealthy man on paper. But he’s deriving no income from that wealth, since he can’t rent it out because he lives in it himself. So now he’s a modest man, who is rich on paper, who is expected to pay high taxes on his paper wealth, turning him into a poor man who is barely scraping by.

      • Natanael@infosec.pub
        link
        fedilink
        arrow-up
        0
        ·
        4 months ago

        Taxing liquid capital is fairly straightforward, especially if it’s tied to income (like company founders owning shares).

        Taxing non-liquid assets is complicated because it’s hard to make it fair in cases of family home inheritance and similar situations.

        But taxing use of assets as collateral for loans (to create liquidity from a non-liquid asset) should be reasonably fair, it can be treated as an advance on capital gains taxes on the collateralized asset.

        • InternetCitizen2@lemmy.world
          link
          fedilink
          English
          arrow-up
          0
          ·
          4 months ago

          But taxing use of assets as collateral for loans (to create liquidity from a non-liquid asset) should be reasonably fair, it can be treated as an advance on capital gains taxes on the collateralized asset.

          Just worth repeating

  • GissaMittJobb@lemmy.ml
    link
    fedilink
    arrow-up
    0
    ·
    4 months ago

    Using retirees as a tool to work against property taxes has historically been an effective strategy, but it’s important to remember:

    1. What we’re actually trying to accomplish
    2. Will the proposed change be effective in accomplishing the goal
    3. Will the change have other consequences that are negative to the extent where the potential benefits outweigh the consequences in aggregate
    4. Are there any alternative means to accomplish the original goal

    One-by-one:

    What we’re actually trying to accomplish

    Seems to me that the root question is one of housing affordability, in particular for retirees, who may have a lot of assets, but limited cash flow

    Will the proposed change be effective in accomplishing the goal

    Reducing/capping property taxes does indeed make it easier for some retirees to keep affording their homes, but reducing property taxes makes real estate a more lucrative investment, driving up the overall prices of real estate. This applies for both private persons intending to use the property to live in, for private persons looking seek rent, and corporate actors doing the same. Messing with property taxes is a large part of the housing affordability issue present in many places in the U.S and elsewhere (zoning laws being another major contributor, in particular those mandating single family homes, and lack of public housing being the other major contributor). Hence, this change would only benefit those lucky enough to have purchased a home in the past, at the expense of all retirees not already that lucky, which are now less likely to be able to do so.

    Will the change have other consequences that are negative to the extent where the potential benefits outweigh the consequences in aggregate

    Apart from driving up the prices of real estate for other retirees, everyone else interested in purchasing a home will also feel this broad increase in prices. This has led to large swaths of the population being effectively priced out of home ownership. This has the second order effect of making owning rentals more lucrative, as higher rents can be charged, further exacerbating the larger problem of housing affordability, but now also for even poorer people.

    Finally, reductions in real estate taxes limit what public services can be funded through their use. In the U.S, this primarily means schools, infrastructure, firefighting, transit etc, all of which are suffering a lot in quality, much as a consequence of having messed with property taxes in the past.

    There’s a very, very strong case to be made that the consequences have very much outweighed the benefits in this scenario. I would even say that they have been devastating, being part of the root cause of a large amount of issues seen today.

    Are there any alternative means to accomplish the original goal

    There clearly are good means to tackle this problem in other ways, the principal of which I believe should be massive public investment in social housing. By building a huge supply of high quality homes affordable to everyone, we make sure no one will have to be forced to go without an acceptable home, regardless of whether they are retired or not.

    The second strategy should be to entirely remove the kind of zoning laws that have contributed to the kind of increase in housing prices seen today - mandating that only single family homes should be allowed to be built on massive lots with low utilization is hugely harmful to housing affordability.

    These two measures would address housing prices having gone up in the way they have historically, which would also lead to property taxes not rising in such a dramatic fashion.

    What should never be done, however, is reducing or capping property taxes.

    • angrystego@lemmy.world
      link
      fedilink
      arrow-up
      0
      ·
      4 months ago

      You make it sound like it’s either or. The resonable thing to do would be to reduce property taxes for the property the owner lives in and tax even more the additional properties. The goal is for people to be able to afford their homes and at the same time making properties not so attractive as an investment.

        • angrystego@lemmy.world
          link
          fedilink
          arrow-up
          0
          ·
          4 months ago

          Correct me if I’m wrong, but that applies to reducing property taxes as a whole. I’m talking about a mixed approach.

  • RBWells@lemmy.world
    link
    fedilink
    arrow-up
    0
    ·
    4 months ago

    Here the increases are capped at 3% per year if you live in the house. I lived in a shitty house we bought for 35k in the 1990s crash, and property taxes when we sold it in the breakup 20 years later were still under 1k a year, though insurance was crazy high. With husband we had to buy a much more expensive house, there are no shitty ones for sale anymore, all are snatched by corps to flip and rent. So now it’s high but in 20 years maybe it will seem low again. Especially if the market crashes and it’s re-assessed more reasonably.

    It’s just inflation, I do think someone owning a home costs the city in roads, trash, transit, other services, Is not crazy to tax on property ownership.

    • PlasticExistence@lemmy.world
      link
      fedilink
      English
      arrow-up
      0
      ·
      edit-2
      4 months ago

      Inflation is also not what the guy with the sign is taking into account in his complaint. He’s at least 40 years older in that picture than he was when he bought his property if he’s getting social security. The real purchasing power of whatever he paid back then is much smaller than the same number of dollars is now.

      $5000 in January 1985 would be the same as $15,055.50 now according to the inflation calculator on the Bureau of Labor Statistics website

      Also, it’s only every three years that he’s paying that much. Honestly, he’s not making the point he thinks he is.

      We need taxes to fund emergency services and local government in general. The problem isn’t that taxes go up in dollar amount. The problem is that the 1% take everything for themselves, leaving the rest of us to fight over crumbs. Our pay and public benefits (like social security) don’t rise with inflation because of the actions of the rich.

      The solution is so obvious, but we spend so much time arguing about everything but the real problem.

      • MDCCCLV@lemmy.ca
        link
        fedilink
        English
        arrow-up
        0
        ·
        4 months ago

        Yeah, if you are comparing the house you bought in 1980 for 10k dollars and say you pay 5k in tax every three years, using 2025 dollars then that is totally useless as a statement.

    • DerArzt@lemmy.world
      link
      fedilink
      arrow-up
      0
      ·
      4 months ago

      I wonder if there should be an exemption for those on Social Security.

      That said, I don’t know of a good way to ensure that an exemption like that wouldn’t be abused.

      • Sconrad122@lemmy.world
        link
        fedilink
        arrow-up
        0
        ·
        4 months ago

        My city has a senior discount on property taxes, where seniors that have a net worth and income both below certain numbers pay reduced or as low as 0% of their regularly assessed property tax. I’m not sure how they verify net worth, but it seems like a good system to me as long as they have figured out a way to do that efficiently and effectively

  • Spaniard@lemmy.world
    link
    fedilink
    English
    arrow-up
    0
    ·
    edit-2
    4 months ago

    If you pay property taxes then the property isn’t yours.

    In my town, the land belongs to the local government.

    • Gladaed@feddit.org
      link
      fedilink
      arrow-up
      0
      ·
      4 months ago

      Certified psycho. If you think owning a plot of land within a country does not have an opportunity cost you are wrong. If you think people imposing costs on others shouldn’t pay for it say it out loud.

      Just go and found your own country already, you just need a gun in order to enforce your ownership. In the end a state is just the monopoly of force in a place.

      • Spaniard@lemmy.world
        link
        fedilink
        English
        arrow-up
        0
        ·
        edit-2
        4 months ago

        I agree with the point that land is owned by the one strong enough to enforce ownership.

        I also think you agree with my point that we don’t own our land, or even our houses, the State owns it and we rent it from them.

        • Gladaed@feddit.org
          link
          fedilink
          arrow-up
          0
          ·
          4 months ago

          We don’t rent it from them. We pay for continued ownership. The difference being that eviction is not possible and you do not need permits unless you do something more involved to your property. Calling it renting discounts the complexities that renting brings with it. The costs of renting usually are much higher than property taxes.

          • BeardedBlaze@lemmy.world
            link
            fedilink
            arrow-up
            0
            ·
            4 months ago

            “We pay for continued ownership” sure sounds like rent to me. Make sure you tell those that had their house/property taken away from them due to eminent domain how eviction is not possible.

            • Gladaed@feddit.org
              link
              fedilink
              arrow-up
              0
              ·
              4 months ago

              At that point the term renting becomes something else entirely and therefore useless to discriminate between renters and homeowners. this discrimination is useful, hence we must not weaken our language.

    • Mickey7@lemmy.worldOP
      link
      fedilink
      arrow-up
      0
      ·
      4 months ago

      This is such an excellent point. Exactly when do we get to stop paying for something that we already own

    • ilega_dh@feddit.nl
      link
      fedilink
      arrow-up
      0
      ·
      4 months ago

      As it should. You’re telling me someone can just buy a piece of the earth and everyone born after them is just shit outta luck? Fuck that.

      • Spaniard@lemmy.world
        link
        fedilink
        English
        arrow-up
        0
        ·
        edit-2
        4 months ago

        Well isn’t that pretty much what my local government did?

        Considering it’s history. It was Monarch land, then took by dictator, then took by Republic, then took by dictator, then back to Monarchy for a short period during democratic transitioning. Well technically they didn’t even buy it they just took it.

        While the people living here, which with me it’s 3 generations of my family but another three before that of another family (the ones who built it), had to paid for it the whole time.

        At least the duchess land was really cheap, like 1 testimonial cent even in recent times.

        If that sounds fair to you, then okay, nothing different from Absolute Monarchies time except the Monarchs.

  • RangerJosey@lemmy.ml
    link
    fedilink
    English
    arrow-up
    0
    ·
    4 months ago

    Nobody tell him that in Communist China you pay a small land tax once every 70 years or so.

    Actually someone do tell him. I bet that little factoid will flip his entire worldview on its head.

  • SinCave@lemmy.world
    link
    fedilink
    arrow-up
    0
    ·
    4 months ago

    Here in the United States, this issue and this sign are advocating for what? This man is where? At his county commissioner meeting? This sign implies we want the federal government in our local tax policy? I mean really? GTFO with this garbage. Stay the F out of my busniess, if I don’t like property tax, that comes with my local vote, and has nothing to do with the federal government. I could bet someone paid this tool to stand with this sign because someone who doesn’t understand decentralized local government power wants to make a point about something that has nothing to do with social security.

    • Kazumara@discuss.tchncs.de
      link
      fedilink
      arrow-up
      0
      ·
      4 months ago

      This sign implies we want the federal government in our local tax policy?

      Where do you read this implication from?

      I’m really asking because I might be missing something, because my background is so different.

      To me it reads like he thinks local taxes should work differently, either be lower, or be raised based on a different factor other than property value. But I can’t see the federal connection.

    • irish_link@lemmy.world
      link
      fedilink
      arrow-up
      0
      ·
      4 months ago

      Or it could be argued that the local county or city is taxing them so much they can’t survive and they are essentially taking federal money even though they claim to not need federal money.

      But hey I’m just a guy who knows plenty of people who look like this who advocate for better social programs. In most places that have county commissioners, their salary is paid by a percentage of the property tax. This may explain the increase in tax or the increase in allowing too many high density locations that have a property tax associated with them.

    • Sleepy3135@lemmynsfw.com
      link
      fedilink
      arrow-up
      0
      ·
      edit-2
      4 months ago

      Then why do the schools in my town look like they’re from 1970 and never updated. Over 10k in property taxes here.

      Edit. I’m all for giving my property taxes to help make kids smarter but it doesn’t seem like it’s working

    • TheBeege@lemmy.world
      link
      fedilink
      arrow-up
      0
      ·
      4 months ago

      But this is a bad idea.

      Areas with high property value have higher quality schooling. Area with low property value have lower quality schooling. The rich stay rich. The poor stay poor.

      Maybe education money shouldn’t come from property taxes. Maybe corporations should pay for the education they require their workers to have visa corporate taxes