Why is it that most states make home owners pay school/property taxes regardless of whether they have children or not? And in turn, why don't people who rent and have children not have to pay these taxes? I believe that most first time home buyers don't know and are not educated on the extra expenses that taxes add to their mortgage payments and/or overall annual housing costs. Why isn't this explained better (i.e. all online mortgage calculators should be mandated to allow added tax costs to figure out the TRUE monthly mortgage payment)?
Could this play a major contributing factor to the rise in foreclosures in America? Why can't local governments see that if they started charging school taxes to families that have children regardless of their mortgage or renting status that it would be better for the school systems and make it a better and a more fair economy? People may not be so apt to have alot of children if they know they have to pay school taxes whether they owned or rented
2007-08-10 05:08:08 · 6 answers · asked by goddesswithin13 3 in Business & Finance ➔ Taxes ➔ United States
We were all kids at one point in time and our parents paid school/property taxes. It would be a property tax nightmare to base how much to charge for your property taxes on whether or not you had kids. The town/city would have to ask everyone if they had kids or not. What about people who send their kids to private school? Or the people who through school choice send their kids to a school in another community? The towns/cities might as well offer everyone a choice as to what they want to be taxed on. Want fire protection? police protection? want public works? etc. It just wont work for taxing people with kids at one rate, and people without kids at another.
2007-08-10 09:40:35 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Everyone pays property taxes, either directly or indirectly. If you are a tenant, your rent is based in part on what the property taxes are. You ARE paying the property taxes for your landlord!
Property taxes are based upon the value of the property, not your family composition. If they were based upon anything other than the property value you would not get a deduction on your Federal taxes for them.
Even if you don't have children yourself, you most certainly DO benefit from the public education system. Just imagine what life would be like if only the elite could afford an education.
Home buyers do not need someone to hold their hand and explain, "Now Bobby, you do understand that you're going to have to pay taxes on this home, right?" Give me a BREAK! (It might be like that if there was no public ed-u-ma-cay-shun though!) If someone buying a home refuses to read what they are signing and ask an attorney for an explanation then they deserve what they get. The GFE and the final closing papers explain that all quite clearly, all you need to do is look at it!
You won't keep humans from reproducing by levying a tax on children. The Chinese are trying to do that right now and it is failing MISERABLY especially now that there is a rapidly growing upper middle class in China that can afford the tax.
2007-08-10 05:23:45 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 1⤋
I understand your point, as I am in the same situation you are.
The only consolation I can give you is that, theoretically, the more money the state has for schools, the better the talent pool of teachers it can afford. The better teachers, the better the school system.
Having a good school system in your area, ideally, is supposed to offset the taxes you are paying for school because you are living in a more desireable area (as more people will want to live there).
I know that is not really comforting, as I often feel the same way you do when I see my $5300/year tax bill come in the mail and $2500 is for the school system that I am not using!
I live in Illinois. What bothers me even more is that I have over 1/3 of my mortgage in taxes and the state can't even balance a budget and pay its workers!
Personally, I don't think it is the main reason for foreclosures, because it is tax-deductible.
Most foreclosures are due to either a person losing a job (or getting sick/disabled) or buying a house they simply could not afford.
2007-08-10 05:17:23 · answer #3 · answered by Stupid Flanders 7 · 1⤊ 0⤋
Theoretically, we all benefit from an educated populous. Those kids grow up, get jobs, and then start paying in to social security that you will be drawing on when you retire.
Renters pay property taxes indirectly through their monthly rent payments.
In Minnesota, it is assumed the 19% of your rent goes to pay property taxes (per the renters property tax refund instructions).
2007-08-10 05:14:43 · answer #4 · answered by Wayne Z 7 · 1⤊ 0⤋
Property taxes are explained during purchasing a property. The taxes are written on the MLS spec sheet as well as disclosed and paid at the settlement table. Foreclosures are caused by lack of budgeting and poor financial skills.
2007-08-10 05:17:10 · answer #5 · answered by James W 2 · 1⤊ 1⤋
If he used those taxes to usher in sturdy artwork, do away with the garbage from the streets briskly, and greater the common public colleges. Taxes are the cost of admission to a 1st worldwide usa. If he can do it and decrease the taxes, like he says he will do, then i'm much greater happy.
2016-11-11 23:00:50 · answer #6 · answered by ? 4 · 0⤊ 0⤋