I
Igor The Terrible
Guest
This article pretty much sums it up. So the next time you hear a
president--especially one like the clueless, ****-for-brains one we
now have in office hype the economy when it's obviously is a dog and a
"commodity" of interest "HAS" been going through the roof......RUN the
other way. For those of you who got stung by the sub prime debacle,
sorry to hear it but....consider it a hard earned life lesson.
Economics and finance are zero sum games and there is no such thing as
a free lunch. And if it sounds too good to be true, it ALWAYS is.
ANY commodity, any security...ANYTHING tangible that rises in value
faster than everything else in the markets, sooner or later will
correct. Always remember that capital gains in real estate are also
subject to getting taxed by your local government as well.
==========================================
States eye ways to rein in property tax By MIKE SMITH, Associated
Press Writer
Mon Dec 24, 3:17 AM ET
INDIANAPOLIS - Maurice Gunyon thought he was set for his twilight
years.
He bought a deteriorating house on Indianapolis' north side, had it
torn down and a new one built. The 73-year-old retired from his
government job in 2004, thinking he was financially secure. His income
included his pension, personal savings, Social Security and rent from
the other side of his two-family house.
Then he got his property tax bill that had nearly tripled. His bill in
2005 was about $2,900 and was $4,600 last year. This year's bill --
$7,568.
"I almost had a heart attack," said Gunyon. "My reaction was one of
pure anger."
His problem is not unique. The amount paid in local and state property
taxes in the country increased 50 percent from 2000 to 2006, according
to Census data cited by some U.S. Congress members when discussing the
topic. During that time, inflation rose 17 percent and median
household income dropped 2 percent.
Analysts cite a number of reasons for the dramatic bill increases
including local governments and states leaning more heavily on
property taxes to meet revenue shortfalls and rising home values
pushing up assessments. Now, states are looking at ways to cut
property taxes or at least give homeowners some relief by capping
assessments and making up the revenue shortfall by raising sales
taxes.
Gerald Prante, an analyst with the Tax Foundation, said rising
property taxes are largely tied to a housing boom over the past five
or six years. The sellers' market caused house values to rise, along
with assessments.
The housing market has tapered off, he said. However, assessments take
time, so a declining market value is not always reflected immediately.
Homeowners only know they have to find a way to pay the bills and are
pressuring their legislative leaders to do something. At least five
states this year cut property taxes and 21 tried to provide homeowners
relief from higher bills, according to the National Conference of
State Legislatures.
"This topic remains on the state fiscal radar nationwide," said Bert
Waisanen, a senior policy specialist with the state legislatures
group.
In 2008, more legislatures are expected to try to find solutions to
rising taxes. Congress has gotten involved through proposals that
would allow people who don't itemize to deduct all or portions of
their local or state property tax bills from their federal income tax.
In Indiana, skyrocketing property taxes sparked protests that have
included homeowners dunking their bills in rivers and lakes to mimic
the Boston Tea Party. Taxes on homeowners in Indianapolis increased by
an average of 34 percent, but in some cases more than doubled.
"I either have to not pay my taxes or not pay my mortgage or stop
eating and turn off all the utilities in order to make it, and that
would be true even if I were still working, or darn close to being
true," Gunyon said. "And I'm not the only person in this situation."
Some states have provided at least some relief.
In November, Washington state lawmakers reinstated a 1 percent cap
on annual property tax increases that was included in a voter-approved
initiative the courts had thrown out.
New Jersey Gov. Jon Corzine signed a bill this year giving most
homeowners a 20 percent cut in the nation's highest property taxes,
which average about $6,333 per homeowner, and capping annual increases
at 4 percent.
Florida enacted a law in October that would implement property tax
cuts if voters approve a revised, proposed state constitutional
amendment that is on the Jan. 29 presidential primary ballot.
Illinois lawmakers approved a 7 percent property tax assessment cap
in the Chicago area that also provides a homestead exemption of
$33,000.
In Indiana, lawmakers provided $550 million in help through rebates
and homestead credits for homeowners over the next two years. But
Republican Gov. Mitch Daniels and a divided General Assembly are
looking to do much more in the 2008 session to reduce the state's
reliance on property taxes.
Daniels has proposed a sweeping plan that would cap tax bills for
homeowners, landlords and businesses. The plan would be funded in part
by raising the state sales tax from 6 percent to 7 percent -- which
many politicians say will be the hardest aspect to sell. The state
also would help local governments with some expenses including
assuming all school costs.
Georgia's House Speaker Glenn Richardson wants to go further by
eliminating most property taxes. The Republican says that could be
done by imposing a 7 percent sales tax on virtually all services.
He says the property tax is antiquated and targets only a select group
of society with no regard to ability to pay, with increases out of
control.
"The logic of property taxes is fatally flawed," he said. "We should
be taxing consumption, not the place where someone raises their
family."
But Republican Gov. Sonny Perdue says overhauling Georgia's tax system
is unnecessary. Many school groups and local officials also oppose
it.
Jim Higdon, executive director of the Georgia Municipal Association,
said it would take fiscal control away from local governments and give
it to the state. And he said residents would be paying sales taxes on
virtually everything.
"It would be bleeding to death from a thousand paper cuts," he said.
But Nancy Hollingshed, who lives with her 81-year-old mother in a
three-bedroom, ranch-style house in Dallas, Ga., likes the plan,
saying it would spread the local tax burden to more people.
The house and 50 acres of farmland it sits on is about 40 miles
northwest of Atlanta, and property values in the area are rising
because of suburban sprawl. The tax bill has increased from $1,000 to
$2,000 over the past three years, and would be about $1,000 more
without a school tax exemption for homeowners over 70.
The land has been in the family for generations, but Hollingshed said
she and her siblings expect the tax bills to keep rising, especially
without her mother's tax break.
"After she dies and after the exemption is gone, we are worried about
paying for what is our inheritance," she said.
president--especially one like the clueless, ****-for-brains one we
now have in office hype the economy when it's obviously is a dog and a
"commodity" of interest "HAS" been going through the roof......RUN the
other way. For those of you who got stung by the sub prime debacle,
sorry to hear it but....consider it a hard earned life lesson.
Economics and finance are zero sum games and there is no such thing as
a free lunch. And if it sounds too good to be true, it ALWAYS is.
ANY commodity, any security...ANYTHING tangible that rises in value
faster than everything else in the markets, sooner or later will
correct. Always remember that capital gains in real estate are also
subject to getting taxed by your local government as well.
==========================================
States eye ways to rein in property tax By MIKE SMITH, Associated
Press Writer
Mon Dec 24, 3:17 AM ET
INDIANAPOLIS - Maurice Gunyon thought he was set for his twilight
years.
He bought a deteriorating house on Indianapolis' north side, had it
torn down and a new one built. The 73-year-old retired from his
government job in 2004, thinking he was financially secure. His income
included his pension, personal savings, Social Security and rent from
the other side of his two-family house.
Then he got his property tax bill that had nearly tripled. His bill in
2005 was about $2,900 and was $4,600 last year. This year's bill --
$7,568.
"I almost had a heart attack," said Gunyon. "My reaction was one of
pure anger."
His problem is not unique. The amount paid in local and state property
taxes in the country increased 50 percent from 2000 to 2006, according
to Census data cited by some U.S. Congress members when discussing the
topic. During that time, inflation rose 17 percent and median
household income dropped 2 percent.
Analysts cite a number of reasons for the dramatic bill increases
including local governments and states leaning more heavily on
property taxes to meet revenue shortfalls and rising home values
pushing up assessments. Now, states are looking at ways to cut
property taxes or at least give homeowners some relief by capping
assessments and making up the revenue shortfall by raising sales
taxes.
Gerald Prante, an analyst with the Tax Foundation, said rising
property taxes are largely tied to a housing boom over the past five
or six years. The sellers' market caused house values to rise, along
with assessments.
The housing market has tapered off, he said. However, assessments take
time, so a declining market value is not always reflected immediately.
Homeowners only know they have to find a way to pay the bills and are
pressuring their legislative leaders to do something. At least five
states this year cut property taxes and 21 tried to provide homeowners
relief from higher bills, according to the National Conference of
State Legislatures.
"This topic remains on the state fiscal radar nationwide," said Bert
Waisanen, a senior policy specialist with the state legislatures
group.
In 2008, more legislatures are expected to try to find solutions to
rising taxes. Congress has gotten involved through proposals that
would allow people who don't itemize to deduct all or portions of
their local or state property tax bills from their federal income tax.
In Indiana, skyrocketing property taxes sparked protests that have
included homeowners dunking their bills in rivers and lakes to mimic
the Boston Tea Party. Taxes on homeowners in Indianapolis increased by
an average of 34 percent, but in some cases more than doubled.
"I either have to not pay my taxes or not pay my mortgage or stop
eating and turn off all the utilities in order to make it, and that
would be true even if I were still working, or darn close to being
true," Gunyon said. "And I'm not the only person in this situation."
Some states have provided at least some relief.
In November, Washington state lawmakers reinstated a 1 percent cap
on annual property tax increases that was included in a voter-approved
initiative the courts had thrown out.
New Jersey Gov. Jon Corzine signed a bill this year giving most
homeowners a 20 percent cut in the nation's highest property taxes,
which average about $6,333 per homeowner, and capping annual increases
at 4 percent.
Florida enacted a law in October that would implement property tax
cuts if voters approve a revised, proposed state constitutional
amendment that is on the Jan. 29 presidential primary ballot.
Illinois lawmakers approved a 7 percent property tax assessment cap
in the Chicago area that also provides a homestead exemption of
$33,000.
In Indiana, lawmakers provided $550 million in help through rebates
and homestead credits for homeowners over the next two years. But
Republican Gov. Mitch Daniels and a divided General Assembly are
looking to do much more in the 2008 session to reduce the state's
reliance on property taxes.
Daniels has proposed a sweeping plan that would cap tax bills for
homeowners, landlords and businesses. The plan would be funded in part
by raising the state sales tax from 6 percent to 7 percent -- which
many politicians say will be the hardest aspect to sell. The state
also would help local governments with some expenses including
assuming all school costs.
Georgia's House Speaker Glenn Richardson wants to go further by
eliminating most property taxes. The Republican says that could be
done by imposing a 7 percent sales tax on virtually all services.
He says the property tax is antiquated and targets only a select group
of society with no regard to ability to pay, with increases out of
control.
"The logic of property taxes is fatally flawed," he said. "We should
be taxing consumption, not the place where someone raises their
family."
But Republican Gov. Sonny Perdue says overhauling Georgia's tax system
is unnecessary. Many school groups and local officials also oppose
it.
Jim Higdon, executive director of the Georgia Municipal Association,
said it would take fiscal control away from local governments and give
it to the state. And he said residents would be paying sales taxes on
virtually everything.
"It would be bleeding to death from a thousand paper cuts," he said.
But Nancy Hollingshed, who lives with her 81-year-old mother in a
three-bedroom, ranch-style house in Dallas, Ga., likes the plan,
saying it would spread the local tax burden to more people.
The house and 50 acres of farmland it sits on is about 40 miles
northwest of Atlanta, and property values in the area are rising
because of suburban sprawl. The tax bill has increased from $1,000 to
$2,000 over the past three years, and would be about $1,000 more
without a school tax exemption for homeowners over 70.
The land has been in the family for generations, but Hollingshed said
she and her siblings expect the tax bills to keep rising, especially
without her mother's tax break.
"After she dies and after the exemption is gone, we are worried about
paying for what is our inheritance," she said.
