LJWorld.com weblogs Loyal Opposition
What is the Matter with Kansas – no Kansas Liberals- Round 2?
This is the second in a series of blogs addressing the sharing of the burden of supporting the “poor”. In this posting I will opine about taxes. I call your attention to the earlier blog for my ground rules.
Now it is true that under this administration federal income tax has not been raised. It is also true that for many of us local and state taxes have been raised. Who raised them? Let us explore.
When Mr. Obama came into office along with almost total control of the Congress the annual appropriations were significantly increased (almost a trillion dollars). The argument was that the increase would have a simulative effect on our economy. Whether it accomplished the purpose is beyond the scope of this article,
A high proportion of the additions were reported to go to efforts to rebuild our infrastructure and to support local and state governments to continue to provide support -primarily to the poor. People were hired to accomplish the goal set. Now such federal spending is being reduced. That decision has forced local and state governments to either raise taxes to sustain the additional people and services or to make cuts to people and services enabled by the federal inflow of cash.
Douglas County chose to raise property taxes by about 20%. Now just exactly who got hit with that bill? Property taxes are reputed to be a proportional tax where the bill is related to the value of the property taxed. However, an examination of home ownership reveals that one finds few owners in the $0 to $50K income range with a substantial number in the $50K to $250K range. Clearly the majority of the bill fell on the latter. Yes, some amount of property tax flows through to renters but as I have written before only those traditional families renting a single family home might pay the full tax. Other renters pay from 50% to as little as 5% depending on the number of independent renters in a given property
Now exactly who made the decision to raise our county taxes? Our Democratic Party county leadership! The Democrats in Washington set the stage and the local property tax payer got fleeced – mostly those with incomes between $50K and $250K. Above that level of income it gets hard to generalize as the 1% have options that bury the cost of housing (to include the tax) in their business dealings.
So by public policy we have reduced the value of the retirement assets available to those making between $50K and $250K while through tax policy we have raised the costs of their real property assets (their home). What next. I was thinking we might look at regulatory initiatives. Soon. By the by is anybody going to take issue with the title?