Face it: Property taxes are forcing Illinoisans out of their homes

That's my point. They WASTE it!
We have the highest gas tax in the region here in NC. We were told it's to have the best highways without the need for a toll road. But now they approved a new toll lane on I-77 for Charlotte.
There are ads whining about teacher pay in NC being too low. Despite the fact that the lottery has added millions to the property taxes for education. They're WASTING the money! How much plainer can it be?
It is NEVER enough b/c they can always steal more. They don't CARE!

 

Maybe we can ask the right to audit that, instead of a profit center like the Fed.

 

What potential gains how they lost? If they can not afford the taxes then they should sell walk away and that is that. If there are potential gain there comes potential loses.

 

Jerry "Bird Brain" Brown was Governor then too.

 

if you didn't follow the conversation with the other user, I'm not interested in rehashing and repeating whats already been published above...

 

Just a simple question? Are you talking about future gain on the value of the house?

 

let me give you a quick breakdown, I'm not going into anymore details after this, you can read everything thats already been posted above...

the guy said "the tax percentage too high" and I said "the assessed value is the issue, not the tax percentage"... I demonstrated this by showing the couples property tax bill was $15,000 which means at a 2% property tax rate, they have an assessed value of $750,000 in order to get that size a tax bill... the story was intentionally misleading and vague and only cited the purchase price of the home for $227,000 to intentionally make us think someone with a $227,000 home is paying a $15,000 tax bill... but they actually in 13 quick years, had their home assessed up to $750,000 because they purchased a home in an area that became THEE place to move...

as a result, rather than tell the couple to pay the $15,000 tax bill, and erode their wealth to pay that, they should instead immediately sell their home, and pocket the $500,000 in profit TAX FREE, rather than stay there and continue to pay a $15,000 tax bill... the OP keeps arguing we need to address the tax rate, I argue we need to make the logical economic choice which is to sell, pocket the profit, and go find another $227,000 home and start over this process... thats sound financial advice from me... walk away with the profit and reinvest it in other things, and still go get another home loan someplace more affordable since they have been priced out of that area...

the OP didn't have to way to reduce the tax percentage and still pay for city and county services since he eroded the tax base... so the problem is not the tax percent, its not the homes value, its the couple wanting to make an emotional choice to stay in the home, rather than the financially correct choice which is to sell, capitalize on the existing gains, before the other neighbors are forced to sell as well because they can't afford the taxes on the assessed values, and once more homes go up for sale, the prices they will get for their homes will drop as supply and demand tips in the opposite direction... the sound advice is to sell now, pocket the $500,000 tax free, and move on...

(seriously just read the whole conversation, I'm already annoyed because I had to keep repeating this simple thing to him a dozen times, and now you)

 

A question might be why do we need to have a property tax? At least why is one needed on residential property?

We believe our property tax money is earmarked for schools or emergency personnel but is this actually true? I'll guess property tax revenues are spent any way the local government desires?

I would prefer tax revenues be collected instead through the general sales taxes. It is illogical and immoral to require property owners to pay higher and higher property taxes when incomes do not increase at the same rates! It is further unconscionable to force older people out of their properties simply because in later years or retirement they cannot afford to pay market-rate property taxes...

 

Illinois has to many on welfare to support anymore....

sadly those welfare families are moving to other states now that have better welfare opportunities...

not sure what to do about this, I want to help the poor, but I do not want the poor just to become breading machines to get bigger paychecks from the government either

I think we need government child care and these people need to work, no more sitting at home all day on the tax payers dime

also the "not wanting to work" mentality is not a mental illness deserving social security disability... most people do not "want" to work, they would love to be rich and do whatever they want, whenever they want, but that is not reality for most folks, we have to work if we want to support our families

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You missed the issue.

Property taxes levy an immediate tax on unrealized income. A house appraised at $500,000 is only worth that much if it sells for that amount.

Consider the lady who earns an average income and bought a modest house in 1980 for $50,000, today its appraised at $1Million. The lady is not benefitting from that appraised value, she makes no income from that appraised value, it has not affected her standard of living in any way. It only comes into play when she sells the house and actually realizes that $1Million.

And real estate prices rise - and fall. Today her house is valued on paper at $1Million, next year it could be $500,000. If her house value falls next year, does she get a refund for paying tax on a $1Million appraisal from the previous year?

Property taxes are the most unfair tax of all because they levy a tax based on a make-believe value, it taxes the same "value" repeatedly, and without any regard to the taxpayers ability to pay the tax.

 

I agree that our taxes are too complicated.

However, Persons on fixed incomes are not required to forgo renting rooms or other habitations on the property, or engaging in other forms of generating capital.

According to the right wing, no Person should engage in "poor lifestyle choices" instead of discovering capital Opportunities.

 

I believe it has more to do with the capital inefficiency of capitalism's natural rate of unemployment.

By solving for that, we can eliminate simple poverty; meaning anyone should be able to afford a place to stay.

 

I'm a leftist, and I agree that people are always better off not engaging in poor lifestyle choices. Why do you think only rightists want to see others lead productive and responsible lives?

 

I would like to contribute more to this thread, but I have no idea what property taxes are, or why they exist in a country which can't even provide nationalised healthcare. We have nothing like that here, and we have high quality free health care and education. The closest I can think of is our Capital Gains tax, but this only applies to investment properties, UPON THE SALE of same. It doesn't apply to ones' home, as long as you've lived in it for a minimum of 12 months. The only other property related tax is a thing euphemistically referred to as "Luxury Tax", which applies only to second or subsequent properties not used for income generation. Any property (above a certain value) reserved purely for occasional use by the owner, is subject to this tax.

Meantime, I don't really understand why people are complaining bitterly about huge increases in the value of their properties. Shouldn't you be celebrating?

 

They don't want people to get better. It's a scam. Rush covered it on his show today.
They support massive immigration because they need a permanent underclass who will vote Democrat. People make more money, they don't need government services, they don't need Democrats. Social services are a bribe by the Democrats for votes.

 

I am a liberal and you do not speak for us

we support helping those that need the help, not those too lazy to work.....

were it gets tricky is when children are involved, that is why I say we need public child care.... and parents be required to work if they are able


.

 

What you seek does not exist. It is only temporary until they get enough control to drive us down to the third world level. THAT is their end game. Why do you think Hillary speaks of a 'hemisphere' market place. Open borders and trade that will continue to drive down our standard of living. Austerity measures MUST follow, as there will not be enough to cover the impending cost of social services for us as well as the third world that will storm our borders. There is also the added burden of medical costs that they bring. They have diseases that we have eradicated. They bring those with them.

 

The greed of the left is off the charts..

 

that is what some republicans want, third world labor here in the usa, some even what to get rid of the min wage, some what to control which adults can love one another, which religion they can believe in... they want a nanny government

I agree, I am against open borders in the current world conditions.. all countries would have to be like ours for that to work, foreign imports and foreign outsourcing need to be HEAVILY regulated and taxed

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only if misspent; otherwise, property taxes pay for infrastructure that benefits the value of the property.

 

That's what Wall Street and the foreigners who have invested in Hillary want, as well.
Why are Democrat cities like Detroit, Baltimore and Chicago violent failures? They've banned guns, yet crime has gone up. Taxes are too high, so business leaves. People with money leave. Except the for the upper wealthy. They leave in gated houses with their own armed security. That is the way things are done in third world countries. Drug lords have the money to pay the police to look the other way when they commit their crimes. The wealthiest have their own security. They are not affected by the squalor around them.That is what they bring here.

 

I didn't miss that at all, I understand the concept, hence why the BEST financial advice for them is to sell that property can realize the $500,000 gains of TAX FREE income... thats what homes in that area are selling for roughly, in order to asses their former $227,000 property 13 years ago, at that price level... capitalize on that before others are forced to move out of the neighborhood and you make far less on your home... wouldn't you consider that good advice, sell, and pocket $500,000 tax free?

and property taxes are THEE best method, because it reflects typically the average incomes in that area to sustain that assessed value... in the case of ghettos those prices are low and as a result all poor people move there because thats all they can afford... we move into the middle class suburbs and most of those homes reflect the median income levels required to afford those homes and the property taxes, and they don't want to live among the poor folks so they move into those areas they can afford... then we move into the wealthy areas where it requires a much larger sustained income and wealth etc etc etc...

in the case of your example, and quite frankly the entire point of this thread, someone made an EXCELLENT choice in the past, and now have a home assessed far above their original cost, now if they don't have the required income to support living in that area anymore, the BEST advice anyone can give them, is sell, realize the gains putting cold hard cash into your wallet, and move to someplace you can afford to live and sustain that level of living... thats how good financial advice works, live within your means, if you can no longer afford it because your income drops, you move, if you can no longer afford it because assessed values rise to high, you move... the later is the better scenario because it likely means you have actual gains to capitalize on and profit from... take the profit!!!!!

basically everyone is making this an emotional issue, as if they should stay in that home forever long they want, well, the sound logical choice is to capitalize on $500,000 of TAX FREE profit and move to someplace else just as nice and do it all over again... let me ask you this, has anyone in your life, ever told you, hey, I know you could make $500,000 tax free right now, but instead, just whine and complain and keep living there until you've spent an extra $500,000 in property taxes you can't afford so that you end up walking away with net loss when you sell your home... would you EVER go back to a financial adviser who gave you that horrible advice? NO! SELL SELL SELL...

 

you wonder if your property tax money goes to schools and stuff? have you EVER in your life, reviewed your own towns budget? to see what they spend and what they collect, and what they collect from various sources... its not just property taxes, look at the sales taxes, the thousands of hidden fees, and most likely every area is participating in some form of shared revenue with their state, which skims money off the top of every dollar collected, you know the same way the federal level does...

but do you SERIOUSLY need someone to answer if property taxes goes to pay for schools and stuff? seriously? schools are likely thee most expensive line item on your taxes, quite possibly accounting for half your property taxes on average or more nationwide... and if you don't like the way your local government spends YOUR money, perhaps its time YOU get involved and change their spending habits of your money... or do you not want schools and stuff and just to fend for yourself in all aspects of life, if so, I can't help you... I'm not suggesting there isn't a large waste of money in government, there is, they suck 10% off the top at every level, and then waste likely another 10% on bloated crap we don't need, I'm not arguing in this thread we need more taxes, I'm arguing the couple in the example should SELL and capitalize on a $500,000 TAX FREE payday and move to another nice area and repeat that process in another 13 years...

isn't it good advice to tell someone to take the $500,000 TAX FREE and walk away to another home? or would you advise them against that?

 

In other words, you want to force people to sell.

People live in a particular place because its convenient to work, school, their children, their activities. What does selling do for them? Nothing except cause problems. Yes they get the money (and lose a large part - 1/3rd - in taxes), but they have to turn right around and spend it all on another house that is in the same basic location - unless they want to move away and leave their friends, change their childrens school, leave adult children, drive an hour each way to work.

The home may have been their families home for generations, and they do not want to move. A home is more than just a building.

Or they are elderly and moving is a major burden (and it is for many elderly).

Money is not everything.

Property taxes are the most unfair, unjust tax possible.

 

okay so like I asked the other person who wanted to (*)(*)(*)(*)(*) and moan about property taxes... what is YOUR solution to this problem... how would YOU like people taxed, and if you want property taxes to disappear, who and how will the money come from? ultimately who pays the price? shift the dollars, you're going to make the SAME people pay the price, unless you want some insane income taxes that milk the wealthy for 100% of what they earn... you won't be able to escape milking the middle class...

so like I said... who's giving better financial advice, me who tells someone to sell and bank the $500,000 of TAX FREE profit... or you, who just (*)(*)(*)(*)(*)es and moans and offers no solutions to either remain in that home, or to redo the entire tax system, without disrupting the current level of services they likely moved into that area for??? I don't see you giving them any sound financial advice, I just see you (*)(*)(*)(*)(*)ing and moaning like all the other (*)(*)(*)(*)ers on this website who NEVER stop (*)(*)(*)(*)(*)ing and offer real world solutions other than the tired old rhetoric they keep spewing but never changes... in my scenario, they made $500,000 TAX FREE, in your world, I hear crickets...