Property taxes should be eradicated in lieu of sales tax on products produced from property and property sales. Much of this book pertains to how the federal government should be repaired for a more representative republic, but one cannot discuss tax issues without addressing the most pernicious tax that affects the majority of Americans: local property tax. Thesis 81 presents a foundational alter

The Argument

Property taxes should be eradicated in lieu of sales tax on products produced from property and property sales. Much of this book pertains to how the federal government should be repaired for a more representative republic, but one cannot discuss tax issues without addressing the most pernicious tax that affects the majority of Americans: local property tax. Thesis 81 presents a foundational alteration in taxation policy, proposing that state governments should allow the substitution of property taxes with sales taxes on products originating from property and property sales. This essay analyzes the rationale behind this proposition, leveraging historical context and contemporary economic principles to highlight its significance. The essence of Thesis 81 lies in recognizing the limitations of traditional property taxes and the potential of sales taxes to stimulate economic growth. By transitioning away from property taxes, governments can create a more conducive environment for investment and promote fairness in taxation. Across history, property taxes have stood as a principal revenue stream for local governments, tracing their origins back to ancient civilizations. In the United States, property taxes have been instrumental in financing localized public services and the advancement of infrastructure. The original legitimacy for property taxes was rooted in an agricultural society where property meant the means of production; it was akin to a capital tax on potential income. Property ownership was directly tied to one’s ability to generate wealth, and taxing it was a logical approach. However, this dependence on property ownership as a taxation foundation has drawn criticism concerning equity and economic efficacy in the modern context. Thesis 81 advocates for replacing property taxes with sales taxes on property-related transactions, such as property sales and the sale of products derived from property. This shift offers several advantages, including simplification of the tax system, incentivization of investment in real estate, and alignment of taxation with economic activity. Property tax structures often include mechanisms that assess commercial properties and second homes at higher rates than owner-occupied homes. This differential assessment aims to reflect the presumed higher economic benefit derived from commercial properties and investment-driven residential properties, which are often rented out for income. These properties are typically valued not only on their physical attributes but also on their potential to generate revenue, which can lead to higher assessments compared to primary residences. This discrepancy in assessment rates means that property investors face significantly higher property taxes. These increased costs are frequently passed down to tenants through raised rents, placing a disproportionate financial burden on low-income renters who may live in these properties. Furthermore, owners of second homes may experience higher tax rates compared to their primary residences, reflecting a policy intent to leverage tax policy for residential stability over investment gains. This system, while designed to target higher income levels and commercial profitability, can inadvertently impact rental affordability, especially in markets where housing supply is limited, and demand is high. Thus, the mechanism of assessing commercial property and second homes at higher rates amplifies the challenges of housing affordability, particularly affecting the most economically vulnerable populations. By implementing sales taxes on property transactions, local governments can capture revenue from property-related economic activity while maintaining the revenue necessary to fund local services like schools, infrastructure, and first responders. This reform holds promise for unleashing economic opportunities and encouraging investment. Embracing this transition can enable policymakers to establish the foundation for ongoing economic revitalization and prosperity. Part VIII My Personal Thoughts Regarding Global/National Corporations (G/NC) Concentrated power is not rendered harmless by the good intentions of those who create it. —Milton Friedman When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it. —Frédéric Bastiat