Jim Mork said: > > > > Property taxes do hit wealth. Two problems I see > > with property taxes. (1) A hot property market > > can force your "wealth" to somewhere you don't > > want it to go, as in doubling the price of your > > house when you have no INTENTION to sell it! (2) > > Though you might in THEORY get "wealthier", the > > city wants it in cash, and if you can't or won't > > sell, you might not HAVE any more cash than you > > had before. This hurts the elderly who have no > > more cash flow but who have become wealthier on > > paper. This is a major reason people come to > > resent this "wealth tax". It is forced on them > > when they are least able to handle it.
Carol Becker reply: > I went to a truth in taxation hearing some years ago. I spoke with an > elderly gentleman who was quite distraught about his taxes, telling me how > he was being taxed out of his house. After talking to him at some length, > including looking at the documents that he brought along, I found out that > the fellow had bought a house along one of the lakes for $35,000 at the > height of the urban flight and now the house was valued at a half million > dollars (and this had to be like the early 1990's...). He was being taxed > out of his house as his house had increased in value 1500%. I both felt > quite bad for this gentleman who probably was going to lose his house > because of his taxes and simultaneously thought "Please god, strike me with > this problem...." My two cents: Yes indeed - I'd like to have the problem of the old guy too. One thing I don't understand - home equity loans are so easy to get these days - why not use such a loan to pay your taxes if one is concerned about losing your house? The increased equity in the house will easily cover the increased taxes. Using loans that way enables one to liquidate some equity in the house without selling. One needn't borrow an imprudent amount to cover the tax. In the example above, the guy could get a $100,000 loan to pay his tax for a good many years. Mark Anderson Bancroft _______________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Unsubscribe, Digest, and more: http://e-democracy.org/mpls
