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isn't real estate one of the safer options In the US, property owners generally have to pay property taxes. In places where tech folk congregate, such taxes ca
by MichaelSalib 16y ago
isn't real estate one of the safer options
In the US, property owners generally have to pay property taxes. In places where tech folk congregate, such taxes can be quite significant. Most municipalities fund education primarily through property tax levies and given the long term trends in the costs of primary and secondary education, I expect that property taxes increases will outpace inflation over the next decade or two. There are two reasons: technological improvements haven't raised productivity in this part of the economy and aren't likely to in the near future. Secondly, it seems that some (many?) municipalities are engaged in a status arms race regarding education spending and since most people are not equipped to assess educational outcomes, decisions often turn on more easily measured proxies that have little effect on outcomes.
Now the government could of course also try to take my house, but I think the public outcry would be bigger than for other investments - so it seems even more of a last resort governments would choose than other forms of taxpayer exploitation. Am I wrong?
I don't think you're wrong so much as that you haven't assembled evidence to make a convincing case. You're speculating. But without evidence, I don't find your speculation to be persuasive. I don't see much difference between the government raising property taxes and raising income or capital gains taxes. There's no need to seize your home.
- stretchwithme 16y agoexactly. They can take your house more quickly than they are by raising your taxes. And when they do, the value of your house will decline rapidly, as it is no longer as good an investment. I remember when Massachusetts reduced property taxes in the 80s, housing prices went up rapidly. It suddenly became a better investment, costing much less every year to maintain. The opposite will happen if they raise the taxes.