March 26, 2007
Property taxes don't have to rise – Reducing taxes is GOOD PUBLIC POLICY
The state has no direct power to reduce property taxes, which are assessed by cities, counties and school districts. So what happens is that budget increases get passed onto taxpayers. Essentially, the state makes up the difference between what the local government levies and what the property owner pays.
Reducing taxes that the state has direct control over is GOOD PUBLIC POLICY. The most basic fiscal responsibility of elected officials and other public leaders should be to make sure that the tax systems producing revenue and does not collapse by making conditions harsh on businesses and residential taxpayers. Citizens elect their state and local leaders to provide stewardship of governmental institutions and their finance decisions.
Taxpaying citizens have to trust the elected officials to work on their behalf and have little over-ride on financial matters. Often their trust is misplaced.
A spending spree mentality is pervasive across much of the nation. Officialdom has the newest cars, the best health insurance, early retirement initiatives, featherbedding jobs or jobs that could be more economically contracted for than to be filled in-house by an expensive state union job holder. Elected officials are tempted to buy the "gloss" and leave the taxpayers holing the bag.
Reducing taxes is GOOD PUBLIC POLICY. If a recession and the prognosis of many economist suggesting housing values to fall 20-40% in the next year were to take place, what is to become of the taxpayer? It’s good public policy to start reducing taxes now if only to give working men and women a break. In the long run, when the economic cycle turn bad, there will be a little wiggle room.
Filed under Blog, Taxes and Public Policy by George Bolton
