Growls

A new study by the Tax Foundation (Fiscal Fact #243, August 31, 2010) found that between 2007 and 2008 property taxes increased nationwide as property values fell.While property values fell 16, according to the Case-Shiller index, per capita property tax collections increased 4.2% nationwide. The Tax Foundation explains:

“The recession that began in December 2007 was precipitated by a financial crisis which in turn was triggered by the popping of a real estate bubble, particularly in residential property. And indeed, property values did decline dramatically. The Case-Shiller index, a popular measure of residential home values, shows a drop of almost 16 percent in home values across the country between 2007 and 2008. As property values fell, one might expect property tax collections to have fallen commensurately, but in most cases they did not. (emphasis added)

“Data on state and local taxes from the U.S. Census Bureau show that most states' property owners paid more in FY 2008 (July 1, 2007, through June 30, 2008) than they had the year before (see Table 1). Nationwide, property tax collections increased by more than 4 percent. In only four states were FY 2008's collections lower than in FY 2007: Michigan, South Carolina, Texas and Vermont. And in three states—Florida, Indiana and New Mexico—property tax collections rose more than 10 percent.”

In Virginia, per capita property tax collections increased from $1,304 to $1,362, an increase of 4.5%, and ranked 30th among the states.

From 2007 to 2008 in Arlington County, according to the FY 2011 adopted budget, the average assessed value of the average single family home, to use the terms used in the the county’s adopted FY 2011 budget, decreased from $537,500 to $530,800, or 1.25%. During the same period, the average real estate tax payment increased from $4,397 to $4,501, or $2.37%.

Although residential property values in Arlington County did not drop as dramatically as they did nationwide, the solons on the County Board did raise the real estate tax rate from $0.818 per $100 of assessed value to a rate of $0.848. Just keeping the size of local government growing, eh?

Posted by ElGrowlerGrande at 04:44 PM | Permalink | TrackBacks (0)

Dr. Walter E. Williams, an economist at George Mason University uses his weekly column at Townhall.com to explain “that we live in a world  of scarcity and everything has a cost . . . (because) “Scarcity exists whenever human wants exceed the means to satisfy those wants.” However, he also explains that it’s probably “the most difficult economic lesson.”

It’s a short column, but worth the read. Here’s the lesson, however, which he applies to Social Security:

“The vision of getting something for nothing, or getting something that someone else has to pay for, explains why so many Americans are duped by politicians.”

Something to remember when listening to political ads this fall.

Posted by ElGrowlerGrande at 05:28 PM | Permalink | TrackBacks (0)

"We have a system that increasingly taxes work and subsidizes non-work."

   ~ Milton Friedman

HT As Certain As Dealth -- Quotations About Taxes," TaxAnalysts

Posted by ElGrowlerGrande at 06:12 PM | Permalink | TrackBacks (0)

USA Today reported today that a record number of Americans are now in government anti-poverty programs, writing:

“Government anti-poverty programs that have grown to meet the needs of recession victims now serve a record one in six Americans and are continuing to expand.

“More than 50 million Americans are on Medicaid, the federal-state program aimed principally at the poor, a survey of state data by USA TODAY shows. That's up at least 17% since the recession began in December 2007.”

In addition, the number of Americans receiving food stamps and unemployment reached  record numbers while people on welfare increased 18%. The cost for these programs has also increased. According to USA Today:

“As caseloads for all the programs have soared, so have costs. The federal price tag for Medicaid has jumped 36% in two years, to $273 billion. Jobless benefits have soared from $43 billion to $160 billion. The food stamps program has risen 80%, to $70 billion. Welfare is up 24%, to $22 billion. Taken together, they cost more than Medicare.”

The newspaper points out that “(c)onservatives fear expanded safety-net programs won’t contract after the economy recovers.” That is why our political solons need to focus on jobs, jobs, and jobs. The following chart is from USA Today:

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'Nothing is more calculated to make a demagogue popular than a constantly reiterated demand for heavy taxes on the rich. Capital levies and high income taxes on the larger incomes are extraordinarily popular with the masses, who do not have to pay them."

   ~ Ludwig von Mises

HT "As Certain As Death -- Quotations About Taxes (2010), TaxAnalysts

Posted by ElGrowlerGrande at 04:45 PM | Permalink | TrackBacks (0)

A new report from the Tax Foundation (Fiscal Fact No. 242, August 27, 2010) shows they pretty much plunder everyone although different states plunder some more than others. The Tax Foundation, however, says it nicer:

“Newly released Census data show how different the 50 states' fiscal systems are. Their reliance on various sources of tax revenue differs widely because they have different endowed resources and policy priorities. These differences are reflected in state-local tax collections no matter how large or small a fraction of the residents' income state and local governments have decided to take in taxes.

“States heavily endowed with valuable natural resources, such as Alaska and Wyoming, will usually exploit those tax revenue sources, which they can do without much fear of driving the activity out of state, given that those natural resources are largely immobile. States with more tourism like Nevada and Florida rely more heavily on sales taxes so that they can forgo taxing income. A calculated decision by a state to concentrate taxation in a few sources is a plus for the state's taxpayers, significantly lowering the administrative burden for government and taxpayers and making the state tax climate conducive to economic growth. Of course, that means relying more heavily on the remaining tax sources for revenue.”

The sources for the study’s numbers are Tax Foundation calculations and recently released data from the Census Bureau. Some examples of these differences include: (emphases added)

• Property Taxes. State and local governments in New Hampshire rely on property taxes for 61.6% of its tax revenues followed by Rhode Island for 42.3% and New Jersey for 42.2%. Virginia’s state and local governments get 32.3% of their tax revenues from this tax source.
  

• Sales Taxes. State and local governments in Tennessee get 57.9% of its tax revenue from general and selective sales taxes followed by Nevada at 55.7% and South Dakota at 54.3%. Virginia’s state and local governments get 14.5% of their tax revenues from general sales taxes and 11.7% from selective sales taxes.
  

• Personal Income Taxes. State and local governments in Maryland get 40.4% of its tax revenue from personal income taxes while Oregon (39.7%) and Massachusetts (36.8%) rely on these taxes. Ranking ninth in this category, Virginia’s state and local governments get 30.9% of their tax revenues this way.
  

• Licenses and Other Taxes. State and local taxes in Alaska rely most on this category at 73.1% followed by Delaware (33.5%) and North Dakota (30.7%). Virginia’s state and local governments get 8.1% of their tax revenues from this source.

In addition, Virginia relies for 2.4% of its tax revenues from the corporate income tax while Maryland relies on the corporate income tax for 2.7% of its tax revenues.

Thanks to the Tax Foundation, and a H/T to the Tax Prof.

Posted by ElGrowlerGrande at 06:38 PM | Permalink | TrackBacks (0)

Why are the people starving? Because the rulers eat up the money in taxes."

    ~ Lao Tzu

HT "As Certain as Death:Quotations about Taxes," Tax Analysts

Posted by ElGrowlerGrande at 07:10 PM | Permalink | TrackBacks (0)

One of my favorite blogs that I usually visit daily is Cafe Hayek published by George Mason University economists Don Boudreaux and Russ Roberts. One of the features are the letters to the editors written by Mr. Boudreaux, who is also a columnist for the Pittsburgh Tribune-Review.

In his Tribune-Review column yesterday, Mr. Boudreaux writes about his letter-writing. For example, he’s been writing letters to the newspaper editors for seven years, and about seven percent of his letters get published. One of the reasons he gives for writing to newspaper editors is that it’s “an excellent exercise in sharpening (his) writing skills.” In that regard, he writes:

“Good writing is not a natural talent. Like becoming proficient at playing the piano or shooting hoops, becoming a good writer requires plenty of practice. My daily letters to the editor are a great way to practice my writing.

“In fact, writing letters to the editor is an especially good way to polish writing and communicating skills. The ideal length of a letter to the editor is 150 words. That's not a lot! (By way of comparison, the length of this column is about 750 words.) Fitting a complete and effective idea into a mere 150 words requires the writer to pay attention to every word — to waste not a single one, making sure each word conveys as much meaning as possible.”

Don points out one reason for writing letters is that it’s cathartic. So the next time you read something in the local fishwrap, get out your pen or pencil and writing pad, or get your computer warmed-up. Boudreaux concludes his column by writing:

“Doing so not only will help you become a better thinker and writer, it will enable those who read your letters to become part of an important public conversation about matters vital to the public interest.”

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