Economically, property taxes are (one of) the most efficient forms of taxation.
However, I would not claim that the property tax is more progressive. For starters, an increase in property taxes would affect renters too. And it's the same reason you wouldn't call a flat tax progressive: Higher earners pay more in absolute terms under a flat tax, but they still pay the same rate.
As for old people, in California there is a cap on property taxes for people who have lived in the same house for years: No old people get thrown out that way, but it creates strange incentives for people to stay in one place when they would rather move. (When you move, you then pay the new property taxes at probably a much higher rate.)
The libertarians in MA have tried to pass things like this before. Even if it does "pass," the legislature can change it. (Unless this is some change to the commonwealth's constitution?)
One final point: There are "liberal" ways to introduce consumption taxes, and "conservative" ways too. It must be seen in a greater context before the label could be applied. And I would argue that liberals *do* want to cut taxes, but only for the people who actually could use it. Read Falling Behind by Robert H. Frank for a top economist's suggestion.
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Date: 2008-10-31 06:25 am (UTC)However, I would not claim that the property tax is more progressive. For starters, an increase in property taxes would affect renters too. And it's the same reason you wouldn't call a flat tax progressive: Higher earners pay more in absolute terms under a flat tax, but they still pay the same rate.
As for old people, in California there is a cap on property taxes for people who have lived in the same house for years: No old people get thrown out that way, but it creates strange incentives for people to stay in one place when they would rather move. (When you move, you then pay the new property taxes at probably a much higher rate.)
The libertarians in MA have tried to pass things like this before. Even if it does "pass," the legislature can change it. (Unless this is some change to the commonwealth's constitution?)
One final point: There are "liberal" ways to introduce consumption taxes, and "conservative" ways too. It must be seen in a greater context before the label could be applied. And I would argue that liberals *do* want to cut taxes, but only for the people who actually could use it. Read Falling Behind by Robert H. Frank for a top economist's suggestion.