By Andrew Robbins
CSMS Magazine Staff WriterB. Patrick Bauer-D, Speaker of the Indiana House of Representatives, explained the state’s proposed property tax plan. “Homes valued at $245,000 or less would be taxed/capped at 1% of the appraised value. Homes above the cap, those owned by “the rich”, would be taxed at a higher rate and pay higher property taxes.” Lawmakers observed that as home prices appreciated, real estate brokers enjoyed greater financial success. The general assembly then adopted the present strategy of taxing property at a percent of its current market value. As inflation kicked in and home prices rose, governments began collecting, and spending, higher revenue. Many of these “rich” are two-parent wage-earning families who struggle to survive. To participate in the American dream they took charge of their destiny and, as a hedge against inflation, invested in homeownership. They now carry heavy debt in the form of mortgages and increasing property taxes; while rising prices for food, fuel, and other basics push them to the brink. In the past decade, economist Richard Brock, repeatedly warned clients that the market price of the big box home would collapse. Baby boomer retirements are creating a market where 78 million home sellers outnumber homebuyers.Based on escalating property taxes, no business model exists to justify buying or holding a big box home. Factor in homeowners who currently pay monthly property taxes that exceed 500 to 1,000 dollars, and the question becomes, “What home buyer would be willing to assume that burden along with a mortgage?”Analysis suggests new homebuyers would be financially further ahead investing in bank certificates of deposit or other investment instruments while choosing to live in modest structures. By avoiding the big box home there is another advantage and that is keeping the general assembly and their friends out of your wallet. It is your money, not theirs, don’t give it away!Bauer spoke, “The role of democrats is to protect the poor from the rich.” That sound bite fails to point out that many of the poor are poor by choice. If you repeatedly make bad decisions, life gets worse. It is your role to undo your bad decisions. There are not enough “rich” people to pay for all the bad decisions that individuals make. In the end it is the middle class, plus the rich, who pay for the cleanup. A socialist government, which we truly have today, is inherently evil. It is to be closely watched, for it has at its disposal legal force to accomplish its agenda. It portrays itself as serving the people. But, it is only empowered by those individuals who are willingly to give up their identity and stay forever in the “protection” of the government.Thank God for the rich! The top 10% of income earners pay 50% of all income taxes collected. They exemplify their dedicated work ethic; they are risk takers, innovators, persistent, and they provide the brains and capital that employ Indiana’s citizens.For politicians, the rich serve another purpose. The rich are used to feed fear and envy to the less prosperous. To capitalize on the political dream of bigger government and more status, the socialist agenda offers to protect the voter from the “evil” rich. But in truth the socialist politicians foster division and at the same time they fuel the indigent’s status quo, while the rich do things to create worker independence. Voters have two opportunities (primary and general election) to express their support for, or displeasure with, the general assembly. Vote wisely, for under Bauer’s leadership that body produced legislation that has long-term consequence. Furthermore, the Indiana House has yet to debate forced annexation. As Governor Daniels testified before the legislature, he pointed out, “Municipal spending is out of control!” Property taxes finance runaway spending and have already forced families to flee the state. Across Indiana, forced annexation is the catalyst for financing the socialists’ agendas! The tax and spend group, intent on growing government bigger, is comprised of both democrats and republicans. The proponents of forced annexation offer no additional services, only higher property taxes that finance projects they claim are best for you. These politicians are the roots, the feeder system, for growing government bigger. If Indiana is to survive, they need to be identified and voted out. Forced annexations, result in higher property taxes, which in turn reduce the number of buyers available to purchase your property. Without a comprehensive property tax plan the voter will continue to witness a stalled economy, falling home prices, and families exiting Indiana.Also see Home Ownership and the Housing Market (Part 1)The Housing Crisis: Municipal Spending is Out of Control! (Part 2) The Interest RateNote: Andrew Robbins is a staff writer for CSMS Magazine and the author of It Took My Breath Away: One Man’s Experience May Save Your Life. He can be reached by email at:[email protected]
