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Do You Really Think ...  >  Property Taxes

Property Taxes 

Property tax is usually colleted from the all property owners wheather individuals or businesses.

The tax is usually based on the current value of the property and is typically a perentage on the

value of the property. The money colleted is ususaully spent on the school system in the

respective countyies.


The money collected would be spent one way or the other wheather the county spends it or the

people who are paying if they weer not taxed. the diffrnece is that if the individuals or business

were not aaxed they wpoul spend the money differently than the county that tcollects it. If the

ocunty spends it then we have money going to the school distrcits and would result in products

that the public cannot spend their money on, meaning the schools and the school programs. So

this money is then withdrawn from the business circulaltion from the businessess and hene will

not be spent by the coresponding individuals and business for their busnesses. Hence their rate

of return on investments will be smaller than it would otherwise be he case. This then translates

into a slower growth rate for the entire eeonomy. It is clear that this wil happen and is

happening since a portion of the business profit is not going back into spending  or investment

but insead tansformed into produts (schools and school servcies ) that the public cannot spend

their money on.The conractors that provide school services will have the money that was

colleted in taxes but the money did not tranform into spendable products and hence will be spent

on the remaining products. That will create a presuure on th remainig goods and sevices in the

market and will cause a price rise. This is true for all taxes. That is why you see the prices

consatanly under an upward pressure. In all counties there wil always be a pressure for the

prices to incease.

But the the rason we collect property taxes is to provide school sevices and you can see that

these services will not be provided by the private busineses and since we have to have

education, there has to be a way to divert funds fom businesses and individuals  to provide

school sevices. But that is happening at the cost of a slower growth rate for the entire economy

. this is also the case with extensive outlays for defense and hence they too have a drag effet on

the economy since the public cannot spend the federal contract money on spendable goods and

servcies. This is because the contractors that get the defene money, cannot spend the money on

the defense goods produced like aircarft and aircarft carriers. Hence all defense spending will

also cause a drage on the economy and lead to a constant pressure on the prices to increase.


Now that we know how the taxes work we can reduce the effects of them to some extent. There

are many ways to do this but one may is doable with ease.

We can give businesses a tax holiday. This would be a periodic break in taxes. This will have a

beneficial effect as follws. The tax holiday in one form or another will boost the business profit

levels and hence their investment capabilites. The income levels wil increae everywhere. The

reaminaig taxes will be calculated at the higher income levels and hence will yield higher tax

colletion volume. Also the property tax hliday will boost the real estage business and lead to

higher property prices and hence a larger property tax yield after the tax holiday.

Tax holidays are essntial and are a powerful weapon to boost an economy. Indeed a property tax

reduction by 50 percent every 3 years can stabilize an eceonmy and is a quick way to bring about

prosperity for all. 

It is not for nothing that each election year we have the candidates talkig about tax cuts.



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