Tuesday, January 17, 2006

Elderly Tax Relief

Why did I support the program changes?

Tax relief was necessary. And although tax relief for all is the best tax relief, we’re stuck with a bad system in which the property tax is the only major source of revenue offered to municipalities by the state. And many seniors on fixed incomes truly need this tax relief more than most. So supporting this program enhancement was the right thing to do.

Why is the property tax not good?

For seniors on fixed incomes, it’s essentially a wealth tax or an inheritance tax. I dislike both taxes. How many times must we pay taxes? My preference would be to change the system. I think the state ought to offer the town more options for taxes, such as allowing towns to have a municipal income tax or a municipal sales tax. (You can avoid a sales tax, if you want.) And they would both be related to one’s ability to pay, unlike the property tax.

How else can we fix the system?

We should provide towns the option to make their Boards of Education their own taxing authority. This would provide voters with the ability to directly link taxes with (education) services when they walk into the voting booth. Board of Education members may consider the financial impact of their decisions in a different way.

How would I describe our Elderly Tax Relief program?

It’s an ad hoc approach to dealing with a bad system. But it is an appropriate response. When I’ve heard (and continue to hear) from seniors who live in the 4th district… who’ve spent their life in their house… who’ve invested their life in their house… who see their house not as a financial investment, but as an emotional investment… and who go to bed at night wondering if they can afford to pay for their prescription drugs… and be able to continue living in the house where they raised their children… I knew that enhancing the elderly tax relief program was the right thing to do.

Tim White
Town Council, 4th District
TimWhite98@yahoo.com

7 comments:

Anonymous said...

I like Mr.Bill's idea....provide a tax relief program based on adjusted gross income. As he says, it is equally difficult for many younger people or the empty nesters who aren't seniors yet to pay their taxes. I also think an additional adjustment to ones tax bill should be given based on number of years as a resident of Cheshire. For example: Say there's a young couple who just moved to town 2 years ago, their income may be the same as mine, but if I've lived here 30 years (this actually is my 30th year as a taxpayer although not a senior yet)then shouldn't I get a little more of a break?? I suppose this is all just wishful thinking, but it Mr.Bills idea sounds good to me.

Tim White said...

Word on the street is that there is a petition (of some sort) being circulated. From what I understand, the petition is intended to increase the elderly tax relief.

Anonymous said...

Read the book on the two connecticuts. Until this is corrected there is no real solution. The data in this book shows the growth in the public sector with all their benefits. Very little growth in the private sector. The data will be an eye opener.

Anonymous said...

The current tax abatement program for seniors does not work well for seniors or the town, and should be restructured. For one, qualifying for the program should include a residency requirement of at least 30 years, in addition to age and income. By introducing a residency requirement, the number of seniors that would qualify for the program would be reasonable, and the town could then afford to be more generous.

Every time a senior has to sell their home, the most likely new buyer is a young family, moving to Cheshire because of the quality education system. Typically, that means another 1-2 children at a cost of $10k per child, per year. Given that the average senior is paying less than $5k per year in property taxes, the net result is an additional cost, to the town and all taxpayers, of $5-$15k in education expenses alone.

Capping mil rate increases for seniors, and allowing them to also defer some or all of the annual increases, will essentially allow seniors to "freeze" their taxes and remain in their homes, without the need to sacrifice other essentials like heat, food, and medicine.

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