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The MID barely cancels out my property taxes. Imagine if your investment accounts had to pay 1% tax every year based on its current worth even if you didn't rea
by pkaye 10y ago
The MID barely cancels out my property taxes. Imagine if your investment accounts had to pay 1% tax every year based on its current worth even if you didn't realize any profits.
- njharman 10y agoImagine other investments supplying roads, police, fire, parks, and education (or at least a place to store kids during work day) for 12 years.
- dismantlethesun 10y agoThat argument can be made about the usefulness of taxes on anything.
- njharman 9y agoYes, I know. Taxes and social constructs such as governments ARE useful.
- strictnein 10y agoImagine the fact that property taxes pay for a lot of that. Now imagine house values plummeting because you removed the deduction and you've put the funding for all of that in peril.
- Jtsummers 10y agoThat seems like the wrong way to think about things. That funding, then, is predicated on inflated, consequently inaccurate, housing/property values. When the bubble bursts for any reason the funding source will be reduced. Critical services banking on a bubble to sustain themselves is just a terrible (though often done) idea. Eliminating the bubble earlier and getting accurate valuations before becoming dependent on the inflated amount (and suffering from austerity efforts later) would be a much better (and rarely done) plan.
- epistasis 10y agoSounds like a lot of mutual funds...
- pkaye 10y agoI thought with mutual funds you still pay taxes only on the profits. With property taxes you pay it on the current value.
- epistasis 9y agoMutual funds charge you a percentage fee, with or without profits. So when somebody says, "imagine if your investment accounts charged a percentage" that is precisely what mutual funds do.
- AnimalMuppet 10y agoWell, if you rent, you're paying the owner's property taxes anyway, and you're definitely not going to realize any profits.
- blackguardx 10y agoIt depends on the market. I have rented places in the Bay Area where my rent was less than the owner's mortgage. This was pre-2008, though.
- rconti 10y agoMID pays for my property tax (bay area). Without a property tax payment, my mortgage payments are very close to what rent should be. In fact, a couple of years on, it's already less than rent for a comparable place.