I'd also argue that property taxes are a regressive form of wealth tax. For the average homeowner with a mortgage, they are taxed on an amount largely tied to the size of the mortgage and not their wealth. Also, most homeowner's primary source of net worth is equity in their homes, so they are effectively taxed on an amount exceeding their net worth.
Look at the following two individuals. Both live in $1MM homes with 1% property tax rates.
Individual A:
- $200k equity in house
- No other assets/savings
- $10K property tax/year
Individual B:
- $200k equity in house
- $50MM stock portfolio
- $10K property tax/year
A is paying 5% of their net worth in 'wealth' taxes, while B is paying 0.02% of their net worth in 'wealth' taxes. This is clearly absurd and should be fixed.
Look at the following two individuals. Both live in $1MM homes with 1% property tax rates.
Individual A: - $200k equity in house - No other assets/savings - $10K property tax/year
Individual B: - $200k equity in house - $50MM stock portfolio - $10K property tax/year
A is paying 5% of their net worth in 'wealth' taxes, while B is paying 0.02% of their net worth in 'wealth' taxes. This is clearly absurd and should be fixed.