Why don’t we replace property tax for small homes with income tax?
Question by Kaydell: Why don’t we replace property tax for small homes with income tax?
I believe that the property taxes that exist on the home that you live in are not equitable. If my home goes up in value, I still have to live there. Why should we have to pay more in property tax when you only have one home, condo, or apartment and it’s small. We should not be taxing necessities!
If you rent, the property tax is passed on from the government to your land-lord to you and you pay it as part of your rent.
If you are buying a home, the property tax is probably included in your mortgage payment and as your home increases in value, your house payment goes up.
I propose that we greatly reduce the property tax on 1 small home or apartment — which is a necessity. Most people should not pay property tax at all because most people have only one small home which is just big enough to live in.
People with larger families could be allowed a larger home with more square footage without being penalized because for larger families, they need larger homes.
Sales Tax instead!
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Well, make up your mind Income Tax or Sales Tax?
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That’s a good question. I seem to be contradicting myself. I think that we need both sales tax and income tax because these are the people that have the money to pay.
In my opinion, we should not pay tax at all on necessities such as one small home and basic foods.
In place of the earned-income credit, there should be an exemption of the Social Security & Medicare taxes for the poor working people and the rich should pay Social Security & Medicare taxes on all of their income.
Social Security is a very regressive tax. The poor pay and the richer you are the less percentage you pay. This is opposite of how it should be.
Best answer:
Answer by george 2
welcome to the wonderful world of home ownership. if we didn’t have property taxes then you would be paying to have your kids go to school, the road in front of your house, fire and police protection, higher water and electrical bills, ect.
What do you think? Answer below!
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Well, make up your mind Income Tax or Sales Tax?
Of course, people who live in small houses don’t pay much income tax and the property tax is proportional to the size of the property and supposedly the cost of police and fire protection. If you don’t know it, people who own their home, in most states, get a homestead exemption that knocks $ 10,000 or so off the value of the house for tax purposes that landlords and businesses don’t get.
And the sales tax is one of the most regressive of taxes – that is it constitutes a higher percentage of overall spending for poor people than for rich people who buy things like vacation trips and lease luxury vehicles that don’t have sales tax.
While I disagree, there is a good argument to be made for replacing all taxes (property and income) with a “consumption-based” sales tax. This is used in Europe, and the best books on it are two written by Neal Boortz (www.boortz.com). He calls it the “Fair Tax”.