Sales Tax vs Property Taxes

[Gclyde28]

I hate taxes as much as the next person but also realize they are a necessary evil. What I hate the most is property taxes. You can never pay everything off and have your living expenses be “free” minus your utilities.

I wonder what percentage sales tax would have to increase to offset property taxes? Y’all got any other ways to offset property taxes without going to state income tax?

[Mayhem]

Consumption tax would be best.


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[DUKFVR]

Consumption tax would be best.


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This ! I would love to see property tax disappear. Sales tax etc would be worth it.

[Brazos Hunter]

Consumption tax would be best.


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I agree completely! Then illegals and the ultra rich would pay their share instead of us footing the bill for them all.




Michael

[Gclyde28]

I just did some quick googling. I don't think sales tax would even have to double to cover the revenue the state generates from property taxes. It might be close to doubling but I would pay 15% sales tax all day long to not have to pay property taxes.

[Randy]

From what I understand there is volatility in sales tax due to ever-changing markets.

Inconsistent increases and decreases in consumer demand make it a nonviable option.

Income tax is unconstitutional in the state of Texas and I don't feel that will ever be changed.

I don't know a better way than property tax but I feel there is one out there.
The property tax system was designed in the 70's when values were substantially lower. I do not feel it was designed for the current market that we are seeing.

The only way I know to give relief to the average homeowner is to create a much larger homestead exemption amount. This would shift the tax burden to mostly the commercial industries. ie Oil & gas, utilities, industrial properties, railroads, pipelines, etc etc.

I feel this would still catch up with the homeowner due to higher consumer prices when the commercial industries shift this burden back to their customers.

[IvoryRoot]

I agree. Was just having this conversation yesterday.

[ACbob]

I read the Fair Tax by Neil Boortz a few years back. His studies indicate a consumption tax of 21-23% would be needed to abolish all other tax forms. I'd do it even at that rate. All the other taxes removed would more than make up the difference. The tax would be on new item purchases only with almost no exemptions.

[Gclyde28]

From what I understand there is volatility in sales tax due to ever-changing markets.

Inconsistent increases and decreases in consumer demand make it a nonviable option.

Income tax is unconstitutional in the state of Texas and I don't feel that will ever be changed.

I don't know a better way than property tax but I feel there is one out there.
The property tax system was designed in the 70's when values were substantially lower. I do not feel it was designed for the current market that we are seeing.

The only way I know to give relief to the average homeowner is to create a much larger homestead exemption amount. This would shift the tax burden to mostly the commercial industries. ie Oil & gas, utilities, industrial properties, railroads, pipelines, etc etc.

I feel this would still catch up with the homeowner due to higher consumer prices when the commercial industries shift this burden back to their customers.

I understand the volatility in consumer consumption but I'd even agree to a percentage point or two higher to offset that volatility. I've done the math on how much **** I'd have to buy every year to pay as much as I do in property taxes in additional sales tax. I don't even make that amount of money every year before taxes.

[Bud]

I think if we knew what we were really paying in taxes we’d revolt. Between property, sales, federal, inspections, etc, etc, it’s pretty scared to think how many ways they are robbing us.

[Tmag]

Our county adds hundreds of homes a year to the tax rolls. Those homes are built on previous tax exempt land. This adds considerable money to the coffers and our officials never consider lowering the tax rate.
I have seen many of our elderly lose their homesteads over property taxes. It is sad to see 70, 80, and 90 year old folks still having to pay school taxes.

[Gumbo Man]

I think if we knew what we were really paying in taxes we’d revolt. Between property, sales, federal, inspections, etc, etc, it’s pretty scared to think how many ways they are robbing us.

And a lot of other taxes disguised as fees. Health Permits for restaurants are based on gross sales. That is a tax, not a fee. A lot of building permits are issued and priced on total cost of project. Another tax, not a fee. And it goes on and on and on.

[miket]

Consumption tax would be best.


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Agree. I bought this land and built the house myself to save money and reduce the amount of money I would need in case something catastrophic happens, whether its health issue, economic or due to the specific industry I am in. It was a great plan until property values skyrocketed and now my property taxes are almost $6000/yr. No matter how I reduce consumption, lower costs etc, it is completely out of my control, if I cant make enough to eat plus $6000/yr, I will be homeless.

Sure, its fine right now, Im making money, but what happens when Im 70yo and cant work? Or an accident cripples me, or cancer hits like it does almost everyone in my family?

[175gr7.62]

It's really going to come to a head in 20-40 when the people with no retirement/pensions look at having yearly property taxes on the homes they have paid for exceed their social security.

[miket]

And a lot of other taxes disguised as fees. Health Permits for restaurants are based on gross sales. That is a tax, not a fee. A lot of building permits are issued and priced on total cost of project. Another tax, not a fee. And it goes on and on and on.

Yep, when you start and build a business you REALLY get to see how much we pay in taxes. And for nonbusiness owners, guess who really pays for it in the end?