Austin tax burden up 25% in seven years (fit in, 2015)

[scm53]

As this graph shows (as a percentage of median family income):



And that's BEFORE the items in red and green below:

[winkosmosis]

That's why income tax is so much better than property tax. Income tax always scales with your income, so by definition it's an amount you can afford. Property tax is a tax on wealth, the value of your home, which is out of your control. If property value doubles do to migration into your city, your property tax will also double, regardless of whether you can afford it.

Hence we see these stats where median property tax climbs by 20% relative to median income.

Not only that, but property tax forces you to pay continually for something you *own*. Imagine if you had to pay a yearly 3% tax based on the amount in your bank account, under threat of your bank account being taken away.

[sojourner77]

This graph shows me that people are agreeing to pay too much for housing - 10% tax burden? Who is to blame for that?

Our property tax burden is 3.1% of our income. No on is FORCED to pay 10%+ unless they agree to it.

[sojourner77]

Originally Posted by winkosmosis

That's why income tax is so much better than property tax.

Income tax penalizes productivity. Property Tax penalizes consumption.

btw, if your property taxes are rising, that means that you are making money o your house - that is a de facto income tax. You want that extra 100K of property value without working for it? Then pay the extra $2200/year to keep it. If you don't like it, sell and pocket that 100K and be thankful.

[Novacek]

Originally Posted by scm53

As this graph shows (as a percentage of median family income):



And that's BEFORE the items in red and green below:

1. What's the source for this data?

2. Your title is "Austin", but all but one of those categories aren't coterminous with Austin.

3. The anticipated rail bond election is 600 M, not 1 B.

[winkosmosis]

Originally Posted by sojourner77

Income tax penalizes productivity. Property Tax penalizes consumption.

btw, if your property taxes are rising, that means that you are making money o your house - that is a de facto income tax. You want that extra 100K of property value without working for it? Then pay the extra $2200/year to keep it. If you don't like it, sell and pocket that 100K and be thankful.

No, it's a continuous tax on VALUE. It's not income until you sell the house. If Texas had an income tax, the sell price of the house would count as income and would be taxed that way.

If you buy a house in a poor neighborhood for $100k, and within a few years the value increases to $400k due to your and your neighbor's efforts to improve the neighborhood, guess what-- You have to pay 4x the tax. That's PENALIZING IMPROVEMENT.

And if you don't sell the house, you're paying that year after year after year. Houses are homes, they aren't just things you can or should buy and sell like baseball cards.

I already used bank account value as an example. Here's another-- Business value. What if the value of your business was taxed at 3%?

What about your retirement plan? Should that be taxed at 3%? After all, the appreciation is free money in your reasoning right?

[scm53]

Originally Posted by sojourner77

This graph shows me that people are agreeing to pay too much for housing - 10% tax burden? Who is to blame for that?

Our property tax burden is 3.1% of our income. No on is FORCED to pay 10%+ unless they agree to it.

That's the SCALE. The number rose from 4.4% of income in 2008 to 5.6% of income in 2015.

[scm53]

Originally Posted by Novacek

1. What's the source for this data?

2. Your title is "Austin", but all but one of those categories aren't coterminous with Austin.

3. The anticipated rail bond election is 600 M, not 1 B.

1. City of Austin 2014 Budget Summary., pg A-15. Any more questions?

2. Totally irrelevant, bordering on picayune. Almost zero City of Austin taxpayers don't pay City/County/TCHD taxes, as well as ISD taxes to someone - almost all AISD. The number that don't pay ACC is miniscule. Those numbers apply to 95% of the homes in the city.

3. Nice obfuscation. That isn't what the legend says.

[sojourner77]

Originally Posted by winkosmosis

If you buy a house in a poor neighborhood for $100k, and within a few years the value increases to $400k due to your and your neighbor's efforts to improve the neighborhood, guess what-- You have to pay 4x the tax. That's PENALIZING IMPROVEMENT.

That's $300K of free money you didn't have to work for - a 300% profit. I wouldn't cry myself to sleep over something like that.

Imagine making enough profit in a few years to buy a house outright for cash - while others spd 30 years of their lives trying to do that, and claiming that you have been PENALIZED???

[sojourner77]

Originally Posted by scm53

That's the SCALE. The number rose from 4.4% of income in 2008 to 5.6% of income in 2015.

what is that scale on the far right side of the graph that goes up to 10%?