There was a fairly good argument in favor of sales tax rather than property tax in the Herald Business section today: Raise sales tax 41 percent, but spare their homes? However, I think the author was trying to argue against it. I really couldn't tell. Can someone tell me? He said: “Do the Math.” When I did, the sales tax came out MUCH, MUCH cheaper for me. I think I have to read more articles.
He also had a section "Flawed Thinking". Here is what I think is flawed thinking: That somehow “that Group” (I am trying to be kinder and not call them names) in Tallahassee is going to work for our benefit. I just don't think any plan they concoct would help any of us in the long run.
The columnist Gregg Fields made one very important point:
“In recent years, local governments became addicted to the flood of money produced by the real estate boom. They could have curtailed spending and reduced tax rates, but that thought doesn't seem to have occurred to anyone.”
Well, maybe two points:
“And thanks to Save Our Homes -- sometimes called Save Our Waterfront Homes -- those who own a house can't afford to move, and those who rent can't afford to buy.”
11 comments:
Gregg Fields reflects my feelings, collect the taxes and they will find a way to spend it. The budget goes up and up with no serious effort to cut the tax rate. You may wonder where the total budget would be without the “Save Our Homes” amendment 10. Without amendment 10 would Miami-Dade County have lowered the millage rate due to the extra funds collected? How about the other taxes collected on millage, schools, Fire district, Library District, South Florida Water management, etc. Would have they lowered their millage? I don’t think so. Not only that, assume that with the housing bubble bust would they cut back spending with the lower assessments assuming the decrease value in property? Nope, they would cry to RAISE the millage, you could bet on it. So in some ways the “Save Our Homes” Amendment 10 provides a kind of governor on the effect of such things as the housing bubbles bursting.
Seems like just a way to keep the real estate bubble inflating.
Do away with property taxes and you will raise the nominal value of homes. That much less a year to maintain a property, that much more you can afford in mortgage payments.
To some extent what people can afford to pay a month is what determines the size of the mortgage they can qualify for.
Prices generally go up faster than they come down. Wouldn't expect a quick correction in property values and rents.
Property is difficult to hide, other purchases less so. Buying through the intertubes and the Google for example.
Sales taxes are regressive and put a greater burden on the poor.
That's the shift.
Not taxing property will increase many persons Federal tax as they will not have a property tax deduction. That money will go to the Feds, not the locals. Add that to the cost of a sales tax increase.
Shift happens.
Ouch.
Not taxing property will increase many persons Federal tax as they will not have a property tax deduction.
woof 1
do you think anyone in Tallahassee really cares about the poor? Maybe 20 tops. That won't be an issue.
this is what i don't understand discussion group. the houses were all selling for twice as much as they did before the past 3 years. so all the local governments were getting a windfall everytime a property sold and they sold.
so why did they need to raise the non homestead people so much? they should have kept them at 3% as well as the homesteaders. I see a lot of greed in this story. Shift happened alright.
What a great idea to make our economy even more dependent upon real estate. Boy an I glad that no one is thinking ahead for the longterm. Hey, while we are at it lets cuts some costs by closing all of these new colleges. Do real estate agents, construction workers, and citizens really need to go to college. All of those residents of waterfront homes send their children out of state anyways, and if they don't already well then they are proably too stupid to go to college anyways.
My specific problem is this... property taxes are collected and used at the local level. Sales tax is collected at the state level and distributed back to the county governments subject to the political will in Tallahassee. How can we guarantee the dreaded big cities of Florida will be adequately funded?
A question.
Do you pay sales tax when you purchase a house?
Devil is always in the details.
Woof - you pay a document stamp price which, if you multiply it by .006 gives you the price of the house. So, remembering that I am bad at math, that would be .6% of the purchase price not 6%. Or would it be....hell you figure it out. They will probably raise this so you make a good point...although those production home builders have power and wouldn't like the stamp tax raised.
G.O.D.
I would not trust Tallahassee to give us the time of day.
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