Saturday, June 11, 2011

Renting From the Government

Of all of the taxes I hate, the worst is property tax.

This morning I heard some 65 year old something say he was making his last house payment and then he would own his house free and clear. "Really" I said.

You see, the first real lienholder on all property is the government. Once I pay off my house, I get to pay the government rent. Property tax. I can't evade it. It never goes away like a mortgage. You pay your whole life. And like my 65 year old friend, the government will seize half of his house anyway via the death tax. Who gave the government the right to seize our property? Well, they did of course.

Smart money, the rich and the elite, do estate planning to avoid paying taxes. Often they have enough money to buy life insurance in an off setting amount to settle the taxes on an estate. They use revocable and irrevocable trusts. They gift off maximum amounts. The use shelters and off shore accounts. The rest of us can't do that. We have just enough money to steal and not enough money to hide or pay for the services that preserve what little wealth we have.

One of my big concerns with buying a house is the great money grab by bankrupt governments. Levy rates are going up everywhere as they try to recapture lost revenue. Government doesn't think like us. When they need money, they pillage us. The last thing they think about is cutting waste or spending.

I feel fortunate to live in a big conservative state that hates taxes. One could find a lot worse places- like the bankrupt west coast- to settle down. Currently on top of income, sales, and gas taxes- I get to pay an additional 6-7% of my income to Ada County. Space rent for my house.

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