The Unjust Property Tax System in the US and its Impact on American Society

Table of Contents

Introduction

The property tax in the United States is a topic that requires national attention.
This article will explore the local tax system, focusing on how towns and cities use property taxes to fund essential services such as education, healthcare, and public safety.
However, there is a scandal surrounding this tax system – it applies to some properties but not others, creating an unjust burden on certain individuals and businesses.
The article will delve into this issue, highlighting the types of property that are taxed and those that are not.
Additionally, we will discuss the implications of exempting stocks and bonds from property tax and the impact it has on wealth distribution in the country.

Local communities heavily rely on property taxes to generate revenue for public services.
The tax assessor plays a vital role in this process, evaluating the value of homes, land, stores, factories, and other forms of real property.
Based on these assessments, the city or town determines the tax rate to be applied to the property, and the owner is obliged to pay the tax annually.
The revenue generated from property taxes is essential for funding public education, police and fire departments, healthcare services, and maintaining public parks and streams.

The term “property tax” suggests that it applies to all types of property, but this is not the case.
Land and structures such as homes, stores, and factories are subject to property tax.
Other types of property, like automobiles, boats, and business inventory, may also be taxed.
However, there is a glaring inequality in the system – property taxes are not levied on what is known as intangible property, specifically stocks and bonds.

This exemption of stocks and bonds from property taxes is where the scandal lies.
While a homeowner is required to pay property tax on the value of their house, an individual who invests the same value in stocks and bonds pays nothing.
This exclusion disproportionately benefits the wealthiest citizens who own the majority of stocks and bonds.
It is worth noting that the average American working-class individual has minimal investments in stocks and bonds and relies primarily on their home as a form of wealth.

Concentrated Wealth: The richest individuals in the United States own substantial amounts of stocks and bonds, and by exempting them from property taxes, their wealth remains untouched. Meanwhile, the average working-class American, who may not even own a home, carries the burden of property taxes.
Missed Revenue Opportunity: The wealth held in stocks and bonds in the country amounts to trillions of dollars. Implementing a minimal tax rate of 1% or even half a percent on these assets could generate a significant amount of revenue, especially during times of economic difficulty. This revenue would only be derived from the richest individuals and would have a negligible impact on their overall wealth.

The current property tax system perpetuates inequality and fails to distribute the burden of taxation fairly.
By exempting stocks and bonds from property taxes, the system favors the wealthy and places a heavier burden on ordinary individuals and businesses that own tangible property.
A fair and just tax system would be one in which all forms of property, including stocks and bonds, are subject to taxation based on their value.
Implementing this change would lead to a more equitable distribution of the tax burden and ensure that the richest individuals contribute their fair share to society.

The property tax system in the United States is in need of reform.
The selective taxation of certain types of property, particularly the exemption of stocks and bonds, is an injustice that perpetuates wealth inequality.
By implementing a fair and comprehensive property tax system, the burden of taxation can be distributed more equitably, allowing for a more just and prosperous society.