U.S. House passes estate tax repeal despite veto threat

[Denny Crane]

Property tax may not be precisely a tax on equity, but it's pretty similar.

barfo

LOL

It has nothing to do with equity. It's a sales tax based on purchase price, not equity.

If you buy a house for $100K in cash, you pay the same tax if you have 0% or 100% equity.

So tell us if you agree with Hillary that the Bill of Rights should be repealed.

 

[barfo]

LOL

It has nothing to do with equity. It's a sales tax based on purchase price, not equity.

If you buy a house for $100K in cash, you pay the same tax if you have 0% or 100% equity.

So tell us if you agree with Hillary that the Bill of Rights should be repealed.

You don't have any idea what property tax is, do you? Thought you owned a house?

Or do you just pitch the tax bills in the trash?

barfo

 

[barfo]

You don't have any idea what property tax is, do you? Thought you owned a house?

Or do you just pitch the tax bills in the trash?

barfo

Sorry, I see what you mean now. I wasn't thinking of equity in terms of 'how much of this house do I own vs. the bank', on account of I paid off my mortgage 20+ years ago.

And, I forgot that you californians decided to tie your assessed value to the last sale price, most of the time, which does make it more like a sales tax, albeit it one that you pay over and over again.

barfo

 

[Denny Crane]

You don't have any idea what property tax is, do you? Thought you owned a house?

Or do you just pitch the tax bills in the trash?

barfo

You don't know how property tax works, clearly.

It has ZERO to do with equity.

If you have $0 equity or own the home outright, the tax is the same, and it's based upon the sale price. In California, it's 1% of the purchase price. Depending on where you live in California, the state, county, there may be other taxes added on, but none of those can be tied to the property's value at all.

The little old lady in the house next door to yours pays tax based upon the $4,000 purchase price she paid in the 1950s, even though the house is worth $300K now. Even tho she paid off her mortgage and you bought next door for $300K with a $270K mortgage. You'll pay ~100x the tax she does, even though she owns outright and you have 1/10th the equity she does.

The ongoing business will pay tax and employees who will pay tax. A closed down place of business generates nothing for anyone. The owners pay capital gains tax when they sell. A cooking store near us just folded. The owner retired and the tax on giving the business to his kids was too much, so it's an empty storefront obamaville style.

 

[barfo]

You don't know how property tax works, clearly.

It has ZERO to do with equity.

If you have $0 equity or own the home outright, the tax is the same, and it's based upon the sale price. In California, it's 1% of the purchase price. Depending on where you live in California, the state, county, there may be other taxes added on, but none of those can be tied to the property's value at all.

The little old lady in the house next door to yours pays tax based upon the $4,000 purchase price she paid in the 1950s, even though the house is worth $300K now.

Well, no, because the little old lady next door to me lives in Oregon, and we have different tax rules here.

barfo

 

[Denny Crane]

Well, no, because the little old lady next door to me lives in Oregon, and we have different tax rules here.

barfo

By law, the assessed value of her home could not rise by more than 3% per year, so yeah, she's paying a tiny fraction of the tax you do.

http://www.oregonlive.com/politics/index.ssf/2014/03/three_misconceptions_about_ore.html

In Oregon, assessed values can rise a maximum 3 percent each year -- so long as the market value is greater.

$4000 with 3% interest compounded for 60 years is ~$23.5K assessed value.

 

[barfo]

By law, the assessed value of her home could not rise by more than 3% per year, so yeah, she's paying a tiny fraction of the tax you do.

http://www.oregonlive.com/politics/index.ssf/2014/03/three_misconceptions_about_ore.html

In Oregon, assessed values can rise a maximum 3 percent each year -- so long as the market value is greater.

$4000 with 3% interest compounded for 60 years is ~$23.5K assessed value.

Except that we didn't pass our version of prop 13 in 1950. assessed values in oregon are tied to 1996 assessed values, not 1950 sale prices.

barfo

 

[Denny Crane]

Except the voters revolted when this sales tax grew with their non captured capital gain.

The voters, even in a liberal state, revolted over way less tax than an even more DESTRUCTIVE inheritance tax represents.