The problem with ETR
I've been thinking about this a lot and have decided to explain my thoughts on elderly tax relief in two posts. Sorry. Just too many thoughts on this.
Anyway, I've decided to start with the underlying problem: the property tax.
The current situation in which we find ourselves is a classic case of where I would prefer to avoid voting on something. Instead, I would prefer to vote on a "comprehensive reform" package. By that I mean, the property tax stinks and CTs entire tax system should be reformed, so that taxes are linked to one's ability to pay. But as long as the legislature ties our hands and refuses to grant towns any (significant) options other than the property tax, we're stuck making ad hoc corrections to a poorly designed system.
What should happen is comprehensive tax reform in Hartford. The legislature should provide towns with unlimited options. Undoubtedly, they don't want to do this for various reasons. Publicly though, they've stated their main reason for prohibiting forms of taxation other than the property tax is that it would be incompatible for a town and the state to use the same tax. Huh? Incompatible? Excuse the french, but... ummm... Then why the hell did the state enact the income tax?? Wouldn't the state and the country be incompatible if we use this logic? Oh wait... Hartford doesn't use logic.
Anyway, enough of my tirade about Hartford...
Why do I dislike the property tax so much?
Because it is unrelated to one's ability to pay. I'd very much prefer to use something like a sales tax.
Why?
Because a sales tax is:
1) related to your ability to pay and
2) avoidable... just don't buy something.
Both of those reasons make a sales tax a better choice than the property tax. Unfortunately, the legislature appears to have no will to enact "comprehensive property tax reform." Look no further than our own legislators. They're quite happy to pay lip service to "property tax reform," but take no initiative in reforming the system. (I'm going to try to youtube that this weekend. Adding youtube here could make this a whole lot more fun.)
Whoops! I went back to griping about the failures of the legislature (including our own legislators who talk out both sides of their mouths). We're stuck here. And we need to play the bad hand we've been dealt.
Tomorrow, I'll try to post my thoughts on Cheshire's proposed ETR, but wanted to at least explain where my thoughts on this process began.
Tim White
Town Council, Budget Committee
3 comments:
Tim...no liens...would your mom and dad want a tax break that puts a lien on their house? I doubt it....
the bottom line is the property tax is tied to something one owns in a community. Which links the levy and the money it is spent on. If one thinks it will enhance the value of the property, people will spend the money. If it won;t, they won't
The real problem folks in government have with property taxes is the taxpyers notice them and therefore put the brakes on excessive spending. Better to have invisible taxes so excsssive spending attracts less attention
Without having studied it,
I'd prefer that the federal gov't use a sales tax than an income tax.
As well, I'd prefer that the local gov't use a sales tax than a property tax.
Of course, both assumptions are based on CTs state sales tax which exempts certain necessities, such as food and inexpensive clothing.
Your point though is interesting. I'd never really thought about that.
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