Monitoring Biden and other Contemporary Events

That cheers me up, the mail has been so unreliable.

The new proposal, which was unveiled late Thursday, would raise the amount of money that individuals can deduct from their federal income tax based on their state and local taxes. The amount would go from $10,000 to $80,000, a limit that would remain until 2030.

The republicans wanted to punish the blue states that charge high property taxes by taking away the tax break for state and local taxes. The idea was if the democrats lost the tax break for their homes, they would vote republican for lower taxes. Odd logic since republicans were responsible for raising their taxes in the first place. Many in the middle class saw their income tax go up by thousands in these high property tax states. Now the democrats want to restore the tax break and there is some infighting.

I watched a program on ID that showed a home that cost a half a million in New York, around here that home would not have sold for a $100,000, it belonged to a stock trader on the floor of the New York stock exchange. The property taxes in New York would have far exceeded the $10,000 deduction limit. The guy ended up robbing banks after he lost his job to keep his house.

It is one thing to tax income but property taxes tax the same income forever. When I was young, I looked forward to paying the house off but after I paid it off, I found I was paying more in property tax. It was like I did not own it and instead of paying the bank I now had to pay the county. If I don’t pay the property tax the government takes the house and auctions off to get their taxes. Property tax is an archaic tax and should be replaced with an income tax. You should only have to pay taxes on your income once, not 70 times on income you earned 50 years ago an invested in property. That is what property tax does it taxes the income you made 50 years ago over and over again. You never truly own anything. After I pay taxes once they should never be able to tax that same dollar again.

Property tax is one of the taxes that allows the government to take your home if you don’t pay the tax. You may owe only a few hundred dollars on a million-dollar farm and the government can take property that has been in your family for a hundred years. In California as property taxes continued to escalate the older home owners could not afford to pay the property and lost the homes that they worked all their lives for. Retired people income is based on what they earned during their life time but taxes continue to go up because the younger generation wants bigger and newer schools. California decided to give seniors a senior discount so some of them might be able to stay in their home. Most states have now followed California’s lead.

Most families invest about 30% of their after-tax yearly income in their home. The income going into the home has already been taxed once but it will continue to be taxed for the next 60 plus years every year and if you are a few months late you will lose your home. The American dreams is to own your own home but it looks as you are just leasing your home from the government. Each year the county auctions the property of those who can no longer afford to pay the property tax, there has to be a better way. Income should only be taxed once not 60 times.