Why not increase city & state income taxes & abolish property taxes?

Question

I would like to see property taxes abolished & a 2% city tax of personal income be charged along with an increase in state income taxes. Here, in North Dakota, our property tax is way out of line, while our state income tax is almost nill. Some people want to abolish the state income tax. This would only benefit the extremely wealthy & the large corporations. With the 2% city tax & the increase in state income tax, this should help fund our schools & provide services for the entire state.

Answer 1

You'd generally have my support on that. Income taxes are the fairest of all taxes as they are based upon the taxpayer's ability to pay.

Property taxes are loosely coupled to ability to pay in that one hopefully buys within their budget. At least during your working years you should be able to afford them. The problem with property taxes comes when you retire on a fixed income, especially when prices rise out of proportion to the cost of living. Many fixed-income retirees are forced to sell their homes as property taxes rise out of proportion to their ability to pay.

Answer 2

Actually, under your plan, the wealthy would probably break even or get a break, since they would tend to have large houses with lots of property tax. Same for large corporations - they might well make out just fine.

Property tax tends to hit everyone. Home owners pay it, and for renters, it's essentially included in their rent. An income tax taxes the people who are reporting their income. People working under the table would avoid the taxes under your plan.

Answer 3

Have you looked at the changes in Florida for property taxes? Maybe you can create an exemption amount that is higher than now so you can pay lower property taxes.

Answer 4

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