Because look at California's housing market

Logos Stick said:

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Sales tax.

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How high? And no exemptions, correct?

Ragoo said:

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Tom Fox said:

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Ghost of Andrew Eaton said:

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Why does our Republican leadership argue that taxing unrealized gains is wrong and yet our state still makes us pay property taxes in our unrealized gains?

I don't see Abbott putting any effort on this issue.

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What is the alternative? An income tax would be even worse.

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how about not having a yearly step up in basis on an asset until it is sold? Like anything else.

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You don't have a yearly tax on holding most other assets, only the profit from the transaction of selling.

And has been stated ad infinitum on this board, California has what you're proposing and it has only served to distort their housing market and inflate prices beyond all reason.

State income tax with no cap on SALT deduction would be ideal. Siphon off some revenue from the feds while avoiding any tax increases on individuals. Then eliminate property taxes. Everyone wins except the federal government. Congress would have to lift the SALT cap, but Trump did express support for it during the campaign.

CampSkunk said:

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Logos Stick said:

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Sales tax.

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Texans for Fiscal Responsibility looked at this a few months ago. They include several options, and one was that a sales tax rate of 12.57% would eliminate 75% of property taxes if it includes a broadening of the tax base while still excluding groceries and prescriptions.

Real Options for Eliminating Property Taxes in Texas

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So an additional 5% inflation on everyday purchases to provide tax relief to wealthy taxpayers?

Ouch, that would go over well with folks. Progressive tax on the poorest and mostly minorities.

Income tax 6%
Avg surburb income 150 to 200k?
9k to 12k in incime tax vs homes 400k to 600k for same families paying property tax 13k to 20k

Corporate income tax.

Not everybody who owns a house or owns a business is "wealthy". It is a policy that would need to be evaluated in detail, and it may not work, but it would be foolish to just dismiss the idea. Also, wouldn't landlords also pay reduced property taxes, and wouldn't that reduction eventually turn into reduced rental rates?

Make it harder for commercial properties to lower their assessments. A corporation will easily pay $10,000 to have their property tax bill reduced by $1 million, whereas a residential owner is unlikely to pay a couple thousand dollars fighting a $500-$1,000 increase.

CampSkunk said:

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Not everybody who owns a house or owns a business is "wealthy". It is a policy that would need to be evaluated in detail, and it may not work, but it would be foolish to just dismiss the idea. Also, wouldn't landlords also pay reduced property taxes, and wouldn't that reduction eventually turn into reduced rental rates?

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Average homebuyer makes 6 figures in Texas. It may not seem like a lot to you, but its definitely above LMI levels.

Landlords for those same LMI folks are usually collecting the rents from the government and/or have tax breaks for renting to LMI.

Tell you what, run a campaign on platform of 12.5% sales tax with an offset to property taxes for homeowners.

You can study it all you want, but the immediate optics of the actual impacts would make most anyone other than wealthy homeowners vomit.

Logos Stick said:

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flown-the-coop said:

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CampSkunk said:

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Logos Stick said:

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Sales tax.

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Texans for Fiscal Responsibility looked at this a few months ago. They include several options, and one was that a sales tax rate of 12.57% would eliminate 75% of property taxes if it includes a broadening of the tax base while still excluding groceries and prescriptions.

Real Options for Eliminating Property Taxes in Texas

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So an additional 5% inflation on everyday purchases to provide tax relief to wealthy taxpayers?

Ouch, that would go over well with folks. Progressive tax on the poorest and mostly minorities.

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The poor pay ZERO Federal income tax. In fact, most get money back from the government. So I'm quite ok with them paying sales tax. Tired of this "think of the poor" ***** Our poor walk around with the latest iPhones and eat steak for dinner because the rest of us bust our asses laboring for them!

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I am thinking about the actuality of getting such a solution considered much less passed. It creates an immediate winning issue for the left if some crazy R proposes such a solution.

I hate the property tax man as much as the next guy and miss getting the bigger deduction and the old sales tax deduction.

The best solution is for us to have better representation at the local & state levels. Its been well discussed how the average "republican" elected official in Texas is really just a liberal in a red hat.

javajaws said:

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The people that get hurt the most under the current system are retired people or people who would like to retire. You pay off your mortgage but still have to end up selling because you can't afford the taxes and insurance. You are never free.

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I would be all for expanding the definition of retired and increasing the amount of exemption for retirees.

Ragoo said:

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Tom Fox said:

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Ghost of Andrew Eaton said:

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Why does our Republican leadership argue that taxing unrealized gains is wrong and yet our state still makes us pay property taxes in our unrealized gains?

I don't see Abbott putting any effort on this issue.

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What is the alternative? An income tax would be even worse.

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how about not having a yearly step up in basis on an asset until it is sold? Like anything else.

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incentives are slippery things. You lock taxes at time of purchase and you'll get govt actions that force sales and new purchases and large investors vehicles that benefit sophisticated and asset heavy players over lower and middle class families.

...things that are through the roof for a $1000 Alex!

Are you proposing everyone pay the same percentage? If so I am good with it but if you are wanting a progressive income tax that's a no for me.

Ghost of Andrew Eaton said:

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So many on here are actually okay with taxes on unrealized gains as long as it's the right unrealized gains.

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One is federal the other state. If you don't like it then move to another state.

flown-the-coop said:

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CampSkunk said:

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Not everybody who owns a house or owns a business is "wealthy". It is a policy that would need to be evaluated in detail, and it may not work, but it would be foolish to just dismiss the idea. Also, wouldn't landlords also pay reduced property taxes, and wouldn't that reduction eventually turn into reduced rental rates?

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Average homebuyer makes 6 figures in Texas. It may not seem like a lot to you, but its definitely above LMI levels.

Landlords for those same LMI folks are usually collecting the rents from the government and/or have tax breaks for renting to LMI.

Tell you what, run a campaign on platform of 12.5% sales tax with an offset to property taxes for homeowners.

You can study it all you want, but the immediate optics of the actual impacts would make most anyone other than wealthy homeowners vomit.

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That might cost wealthy homeowners more in taxes depending on their consumptions levels, no?

Ghost of Andrew Eaton said:

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So many on here are actually okay with taxes on unrealized gains as long as it's the right unrealized gains.

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You still haven't proposed what you want to replace it. Let me guess, income taxes?

Tom Fox said:

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Ghost of Andrew Eaton said:

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Why does our Republican leadership argue that taxing unrealized gains is wrong and yet our state still makes us pay property taxes in our unrealized gains?

I don't see Abbott putting any effort on this issue.

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What is the alternative? An income tax would be even worse.

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Enforcing traffic laws. Collecting the fines. I see so many violations every day. Property taxes could probably get made up from solely fining the people that go 70 mph on the feeder roads.

Tom Fox said:

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flown-the-coop said:

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CampSkunk said:

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Not everybody who owns a house or owns a business is "wealthy". It is a policy that would need to be evaluated in detail, and it may not work, but it would be foolish to just dismiss the idea. Also, wouldn't landlords also pay reduced property taxes, and wouldn't that reduction eventually turn into reduced rental rates?

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Average homebuyer makes 6 figures in Texas. It may not seem like a lot to you, but its definitely above LMI levels.

Landlords for those same LMI folks are usually collecting the rents from the government and/or have tax breaks for renting to LMI.

Tell you what, run a campaign on platform of 12.5% sales tax with an offset to property taxes for homeowners.

You can study it all you want, but the immediate optics of the actual impacts would make most anyone other than wealthy homeowners vomit.

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That might cost wealthy homeowners more in taxes depending on their consumptions levels, no?

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I think for some homeowners it absolutely could, though people who a high consumers usually start that with an expensive home. Before we moved a few years ago, this would have absolutely been the case for us. Now not so much.

If you wanted to truly reform property taxes in Texas, disassociate it from public school funding. Most people suck it up to live in a more expensive home and have those high taxes (rates and gross) in the name of schools, even if they have no school age children (pointing to resale value of being in a good school system).

Its actually a workable solution that many folks could get behind.

Ragoo said:

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Tom Fox said:

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Ghost of Andrew Eaton said:

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Why does our Republican leadership argue that taxing unrealized gains is wrong and yet our state still makes us pay property taxes in our unrealized gains?

I don't see Abbott putting any effort on this issue.

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What is the alternative? An income tax would be even worse.

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how about not having a yearly step up in basis on an asset until it is sold? Like anything else.

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Yup - it's also funny how toll roads get a pass too. Homeboys like Tom love them taxes

Opposing view, I think Texas is taking very good care of the elderly (on property taxes). Anyone is free to correct me if my understanding is wrong.

1) People who are retired do not have to pay property taxes. They simply lose the house when they die if they don't pay.

2) And if you are not in a difficult place as far as your income, the freeze on almost all property taxes is a godsend as you get older. I have been retired for several years and I am paying about half of what my neighbors do. Of course, I fought Bexar County appraisal every year since we bought and won 8 out of 9 years.

Now if anyone wants to argue that a big sales tax, income tax, etc is better, that is fine. But the elderly are doing pretty well under the current system and might do worse under the alternatives.