Texas although not quite there yet is thinking in the right direction of truly supporting the true definition of property rights and ownership. However it does come at a cost of a little over 80 billion dollars for the state to bear. It will be a loss of about more than half its two year budget tax revenue.
As concluded here:
“All told, the state would have had to spend $81.5 billion to completely eliminate all local property taxes. That’s more than half of the $144 billion that lawmakers allocated for Texas’ current two-year budget.”
So how would Texas recover or make up the difference after eliminating property taxes?
Here is what this idea could entail:
As the Texas Tribune article also has to make clear that:
“ Texas would have to more than double its sales tax rate to eliminate all property taxes…”
Sales taxes in the state has to rise from about six percent to about twenty two percent to make up the difference.
In my view as a fellow Texan I wouldn’t mind paying more in sales tax for the true Freedom of having true property ownership. I would even consider similar paths others are taking to incrementally achieve the elimination of property taxes as well. To use any or all the best options to fully achieve this Freedom.
The way Texas has done so is great but I would hope the pursuit to eliminate property taxes keeps going until we actually achieve it. As for now, different measures are or should be considered as mentioned in this article here:
Texas lawmakers such a Midlothian - area representative Brian Harrison has said, “This system of never-ending property taxes… I think it is unethical. It’s inconsistent with private property rights.” His statements were followed up by his idea by filing
“legislation to get rid of both M&O and I&S property taxes within five years. He’d like to create a committee to help local governments determine how best to replace that lost revenue with the sales tax, either by increasing it or adding a tax onto things that are currently exempt (such as groceries and medical services).”
In other words the property taxes that serve as a source that usually pays for schools to function properly can be eliminated. This is possible if we apply or create other sources the state or local governments can provide itself to still be able to sustain schools and other services dependent on property taxes.
What are other benefits of eliminating property taxes besides true property rights?
As Harrison puts it,
“Harrison argues the Texas economy could get a boost with property tax elimination, too.”
“We would have businesses of all types relocating to Texas,” he said. “It’s just an absolute explosion of job opportunities for people. So yes, they’d have savings in their taxes and more job opportunities. Costs would go down, because you think about the costs that businesses have to transfer to their patrons because of the massive property tax burden they’re under today.”
What are the concerns?
Democrats and some Republicans worry its unsustainable and will only undermine the ability to financially support or pay for our education system. Schools, other local services, and public infrastructure depend on property taxes to properly function for its maintenance and day to day operations.
What are the solutions?
While it’s a concern, Representatives like Harrison has several solutions and ideas already proposed.
As mentioned earlier in this article, there different other ways the state and local governments can tax to pay for our educational institutions. As Harrison has said,
“…the money to pay for schools would just come from the new mechanism of taxation.”
He’s right! All it takes is to create taxation in other possible ways for other parts of the economy. There’s always one or more ways to publicly fund what we have now. I would go further and cut any unnecessary red tape or excessive government bureaucracy at the state or local levels to help with reducing the dependency of using property taxes. This can lower down the tax costs for taxpayers.
I’d even go into legalizing, regulating and taxing cannabis in Texas. This would give Texas a significant increase in tax revenue by the billions. According to a special report it said Texas can earn over 2 billion dollars in tax revenue while saving over 300 million in ending the costs of prosecutions and low-level possession of cannabis in the state.
This move creates 20,000 to 40,000 new jobs and thousands more of indirect jobs related to the new would-be industry. In addition to these proposals, not only will the goal to eliminate property taxes will get more achievable but once it’s a reality this will bring a flood of more jobs, businesses and companies increasing the number of tax sources of revenue for the state as a whole.
As a conclusion, it’s really a matter of where else we can possibly get the needed funds to support what we have in the state. As Representative Harrison said,
“If you think about a government spends money, in order to spend money, it has to take it and it does it through taxes,” he said. “All I’m simply saying is let’s not do it through this completely unfair, arbitrary method of never-ending property taxes.”
We can be the first state in the nation and perhaps in the world to achieve the total elimination of property taxes ever. Where the Freedom to truly own your property can actually be real for once.
Where the most vulnerable will no longer have to worry about losing their homes due to expensive property taxes every year. Homestead exemptions being made and legislated are great but not enough nor does it eliminate property taxes in general.
We can stop being the state known for having the highest property taxes in the country. We can start being a state that can be innovative and creative enough to find alternative solutions to fund our schools and other public services. We no longer need an outdated and suppressive way of taxation by metaphorically putting property owners at gunpoint to foot the bill.
If we can actually achieve to eliminate property taxes in one state we can then promote and encourage more states to join the fight against property taxes nationwide. This gives more economic boosts, investments and opportunities to our country as whole.
The point is we shouldn’t penalize property rights with any type of property taxes. Property taxes shouldn’t threaten the loss of their property to what some would call their only home. It’s time to put a stop on the undermining assault of property rights. It only makes common sense to enjoy your right to own property with no strings attached from the state. It’s simple and it’s just cheaper for property owners.
After all, we claim to be
“Home of the Brave and Land of the Free”.
We must live up to that. Let’s be brave and smart enough to come up with ways to eliminate property taxes to fulfill the promises of being the “Land of the Free”. Let’s boldly go forward and make not just our fellow Texans proud but the rest of our fellow Americans.