Property Tax in Paradise

The question here is undoubtedly political. However, Burris does have a fascinating idea. Real Property taxes are one of the few that are taxes on wealth (the other major ones are estate and gift taxes). Indeed, the power of property taxes are that they are direct taxes, and can go only to the state's fisk, and not the larger federal pool, under the Representation Clause of Art. I of the U.S. Constitution.

The notion of creating some sort of a graduated scale has some worthwhile effect. Burris rightly observes too that politically it is infeasible. It seems as though we are less willing to think about progressive taxation. The number of people who would have to liquidate a home, I think, is probably small if you structure the tax graduation properly. However, that is not the issue.

Finally, one cautionary note. People who believe in limiting property taxes should consider the plight of California. With the passage of Proposition 7 in the 70s, local jurisdictions could not raise money through this power, which the sovereign states often devolves to them. As a result, the state had to rely more heavily on other tax sources: namely user fees, consumption taxes, and income taxes. This lead to punitive taxation, and a far more regressive system overall. It led to budgetary problems as it essentially knocked out a major support column on a structure that frequently relies on every support needed. California should serve as a warning for those who are anti-tax. You may be able to drown the government in the bathtub, but then you may have no sovereign entity left to enforce basic laws and rights. Without the State (as in the larger sense of the government) you have no rights. You have no property. (Thank you Hobbes).