Wednesday, July 22, 2009

Land tax reform

Lex noted yesterday that if you think you “own” your home, stop paying the taxes on it and see who really owns it. That got me to thinking – such a rare act that Ms. Lex asked if I was OK. Anyhoo. The constitution covers private property obliquely in the 5th and 14th amendments but only in the sense of the people not being deprived of property without due process and just compensation.

In the Kelo case, 5 dopes in robes took imminent domain to new level saying it was OK for the government to transfer land ownership from one private owner to another. What could ever go wrong with that setup? Heretofore imminent domain applied to the government seizing property for the greater good of the people to build hospitals, parks, roads, etc. Now the mayor and his cronies can seize a political rivals business, under pay the owner and set up a McDonald’s if they want. And when there IS a McDonald’s on every street corner in America – what then? Two McDonald’s? I was just wondering where the McDonald’s corporate model takes them when they finally are EVERYWHERE.

But really how can anyone ever claim to have private land “ownership” in America when that land has to be paid off every year to the tune of thousands of dollars and failure to make that payment to the government can constitute reason for a “due process” hearing that will result in the loss of your land? What other things do we buy that we have to keep paying off? You have to register your car – but only if you intend to use it on public highways. What if the government expected you to pay $100 a year for your 18 cubic foot refrigerator? Or sent you a tax bill on the number of TVs in your home?

Well the energy bill is likely to have such a provision in it – if anyone every decided to read the bill. And if it doesn’t tax you in that exact manner it will tax you every time the refrigerator kicks on or jr. turns on one of those TVs to catch the 24 hours of SpongeBob.

As a rather recent land “owner” myself – 1990 or so – I’m still not happy when I receive the annual tax bill. But how about a guy – a farmer for example – who is on the land that grandpa passed down to dad and dad passed down to you and the government is STILL taxing that land. Shouldn’t that tax bill be paid in full at some point? Say when the land is paid off; or after 20, 30 or 50 years of the same guy or family making payments.

And shouldn’t the taxes on property remain relatively stable to the purchase price? If I buy a house in the country and 20 years later Donald Trump decides to build a golf course next door, why do MY taxes go up? Assess Trump’s land to cover the cost of new roads – not mine. Why am I allowed to be taxed out of “my” home and neighborhood so Trumpy can make money on golf and expensive food?

None of this will ever see the light of day in any political circle. All pols love to spend your tax dollars so they all grab for them. But there is something wrong with the property tax system in America a place that claims to be a beacon to the world for private property rights.

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