Why High Taxes Suck
Hi All,
I'm running around like crazy getting ready to head off the land of nestle and watches (e.g. Switzerland). But before dashing off to the airport, I wanted to take minute to complain a bit about DC's tax situation.
For those of you outside the beltway - thats most of the real world - DC experienced a real estate boom in 04, 05 and 06. Because of this, property taxes skyrocketed. In some neighborhood's the rate doubled. Well, now in 08' real estate prices have leveled off in DC, but we've still got the high levels of real estate tax. People don't always understand what this means, but from everything I've read and understand its clear that high taxes impact economic prosperity.
Just to reference this point: We live in a transitional neighborhood in DC. There are several businesses in the area that cater to a working class clientèle. One of them I love - its a discount clothing store. Their business model is terrific, they buy slightly imperfect name brand stuff and sell it at a steep discount. In other words, its great source of cheap good quality clothing. Now, due to higher property taxes, it looks like their landlord is trying to raise the rent. Probably the place is going to close up shop. If that happens people in our neighborhood will have to go elsewhere for low cost jeans.
While economic dynamics of the District are obviously complex - I'm seeing a relationship between high taxation and pressure on local retail. And its not a good thing.
Best,
James
Stumble It!
7 comments:
Have a wonderful trip!
It's a mystery to me why you are whining. I, too, live in DC and own condo units here. While taxes have increased, they are still low relative to the market value of the homes (and this is true among other home owners I know). Also, you said that housing values have "leveled off" yet taxes are still high. Unless property values plummet, why shouldn't taxes remain the same? You think they should lower rates just because home values are holding steady? That makes no sense.
Anonymous:
The reason that the tax rate should go down is that D.C. has a projected budget surplus of $100M almost entirely from increased real estate revenue. As a D.C. resident, I don't want Fenty spending that money like a kid in a candy store, which is exactly what he's doing. I'd rather he reduce the tax rate and put the money in my pocket.
Waaaaiiiiiit! You have to tell me where this store is. I'll have a new job soon and need frugal but less ratty clothes.
I'm so jealous of your international life. Here's hoping I can follow in your footsteps.
Do you really mean the tax RATE doubled? Or just that the same tax rate applied to much higher property values has resulted in the doubling of the dollar amount of the taxes?
land of nestle and watches (e.g. Switzerland)
Please do no compare any country to that filthy chocolate thing nestle makes. Did you know it has paraffine wax in it? How about other petroleum products? That's right. Europe would never adulterate their chocolate in that way, or any other way for that matter. They would rather die first.
I myself do not associate Switzerland with Nestle, far from it. I can certainly tell you that the freshly made chocolate that we sampled today had no wax at all. Smooth as silk!
Yum!
Miel
Post a Comment