Tax relief or a shifting of pain?
I can't afford to move out of my big house. Like so many Floridians, downsizing doesn't mean lowering my housing costs because whatever I cut back in maintenace costs is more than erased by the jump in property taxes to another home. Now legislators propose shifting the burden of taxes from property to the highest sales tax in the land. That would benefit people like me, for sure, but I think non-homeowners -- read: poor people -- might get the short end of the stick.
What's more, business owners would be hit especially hard. I have several friends who own small businesses and manage to make an OK living. They're not getting rich, by any means, but they do complain plenty about the sales tax. Increasing it will only hurt them.
It's great our elected officials are trying to come up with ways to alleviate the pain. It's a good, first step. But here's a challenge: Cut the pork barrel projects. Look at mismanagement within the government bureaucracy. Tune out the special interests that cost the little people so much money. Now that would be a real legislative feat.
What's more, business owners would be hit especially hard. I have several friends who own small businesses and manage to make an OK living. They're not getting rich, by any means, but they do complain plenty about the sales tax. Increasing it will only hurt them.
It's great our elected officials are trying to come up with ways to alleviate the pain. It's a good, first step. But here's a challenge: Cut the pork barrel projects. Look at mismanagement within the government bureaucracy. Tune out the special interests that cost the little people so much money. Now that would be a real legislative feat.
posted by Ana Veciana-Suarez at 8:41 AM
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9 Comments:
Ana,
Great post! Although, I would disagree with the fact that they would get rid of special interest groups. It appears that this is the downside with living in today's America, and reality proves that's just not going to happen.
Just to shift the view to certain countries in Europe, such as the Netherlands where their sales tax is 50% +. There they enjoy great benefits in which their governments distribute without much bureaucracy. They have some of the best social programs in the world for lower income families and homeless. Their health care might not be that great but if you want to pay for a private one, you get cream ala creme.
Just like my response to your previous post.
$1.25 tolls, 40 cent gasoline tax, cigarette tax, and $6,000 property taxes is enough money so that we all have health insurance AND homeowners insurance.
So the question I have for the Florida legislature is-- How many managers and interest group personnel make six figure salaries?
Shed some weight you bloated bastards!
i think it could hurt businesses. its not a revenue problem with goverment, its a over spending problem .
Another way to benefit people who are doing well enough to own a piece of real estate,afford health insurance, the sales tax in a new car. This proposal does not take in consideration the hard working class who already struggle to pay the tax in every article they seek to acquire most of the time because of necessity (clothes, shoes, medicines, cleaning supplies)rather than luxury!
Couldn't they come up with a better idea??? I would not like to think this is another Republican solution to favor the rich and exploit the poor! but coincidence could not be.
i live out of state and the answer to the meskk q is in my state is. 235,000 to a retired teacher, city police officer who worked all the over time that was humanly possable, 200,000 . the first case is not the norm . or the secongjust think spending also has caught up with your state . just remember boys and girls i think that crime doesnt pay as well as politics
I see benefits for many. Lower property taxes means more people will be able to afford homes, including people in lower income tax brackets. I believe this will cause a forced reduction in rentals as well.
Why can't they split the difference??? Cut millage rates in half, extend SOH 3% raises to ALL properties and raise sales tax 1%... this keeps the little old lady living in a million dollar house with the same tax rates as today, reduces tax disparity between similar homes AND spreads the pain to tourists, snowbirds and illegal incomes by spreading the burden to them as well.
By the way, an extra 2% sales tax on $20k/year (spent on taxable items) is $400... something I don't think will send ANYONE over the edge.
You can afford to move out of your house. Simply select the assessed value in your annual TRIM notice, and use that as the price to pay for your next home. THEN your property tax bill will be lowered.
You should do some research into how property taxes are levied so you know how to manage your investments.
That beats whining.
I like that it shifts some of the burden to our large tourist industry.
If you think about it, high property taxes can currently affect the poor as well. Whether they own or rent their home, the costs of the higher property taxes affects them as well (although maybe indirectly). Higher property taxes on businesses means that businesses have higher costs as well and transfer that to their customers.
Basically, higher property taxes is affecting the poor now even though they may not realize it. What is needed is a more fair distribution of taxes. Rich people spend more than poor people, so they will most likely pay more sales taxes.
Another option is to incorporate an income tax. We seem to think it's great that we live in a no-income tax state but the burden is actually then transferred to homeowners (in an unfairly distributed way).
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