The Polar Tax

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The City’s decision to raise property taxes doesn’t bother me. But it does prompt an interesting consideration. If you aren’t aware, the tax rate went from approximately $177 per $100,000 of value to about $275. This doesn’t seem like much unless you are living in a $100,000 home.

And that’s the consideration. To me, if you own a $500,000 property, you can probably afford the additional $498 in taxes easier than the lower-valued owner can afford $87. But, the opposition to the increase will, most likely come from those who pay more.

Taxes are full of irony. Compare the above scenario to our system of taxing income. I’m not a wealthy man but I pay a hefty rate. My brother, who has done considerably well and has a degree in accounting, pays one third the amount of income tax as I do. The two systems seem opposite in an upside down manner.

If, for example, I owned a home and property valued at a million dollars, I wouldn’t be happy but I’d understand if my property tax rate was higher than the person who owned a vacant lot. More services are required for the home. More infrastructure is required.

Income tax, at one time punished wealth to an almost unimaginable level. At one point in history (1944-1945) 94 cents of each dollar earned above $200,000 went to the federal government. If ad valorem logic could be applied to income taxation, I think the world would be a better place. It’s one of the few common instincts I share with my more conservative friends.

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