To pay for public employee pensions http://globaleconomicanalysis.blogspot.com/2010/12/pensions-eat-70-of-decatur-illinois.html
Every once in a while the politicians in NY blather about capping property tax rates, this is DOA, pension short falls are linked to property taxes to make up any unfunded liabilities. It's a lock. We are screwed. Now Obamer (I'm pretty sure but don't quote me) has elimminated the property tax deduction off the Fed return. Beat me rape me make me write bad checks.
Pensioners will fight to the death to keep what they were promised. The selling of muni bonds may have come to an end.... I like in the article how the Texas mayor tried to change the structure and change the economic policy... good luck. Sweet heart deals can't last forever. If the if the global community stops buying public debt out right get ready for property seizure. The goverment will learn in time how to manage their finances the HARD WAY! http://www.google.com/images?rlz=1T...&source=og&sa=N&hl=en&tab=wi&biw=1345&bih=481 Akuma
i live in a north suburb of cook county il. i am mortified at the prospect of increasing property taxes as a result of fiscal irresponsibility of state officials. my kids will be out of the school system in a couple of years and i am seriously thinking about selling my house. i think residential real taxes need relief and should be shifted to some degree in the form of other types of taxes (vat, etc.). the market for higher bracket homes will likely continue to suffer if this trend continues.
IF in round numbers there's 20 million vacant homes and IF property tax is $1K pa per home then there's a loss of $20,000,000,000 property tax some areas are hit harder than others, then there's commercial real estate which is probably a lot smaller amount but mall closures mean store closures, then there's company closures and knock-ons
I believe you are thinking about the mortgage interest deduction but that only applies to mortgages in excess of $500k. Property taxes are still deductible. If Obama fries Schedule A it will come with dire economic consequences. Putting the country on the standard deduction is a bad, bad idea!
WASHINGTON - The massive new tax bill signed into law by President Barack Obama is filled with all kinds of holiday stocking stuffers for businesses: tax breaks for producing TV shows, grants for putting up windmills, rum subsidies for Puerto Rico and the Virgin Islands. Millions of homeowners, however, might feel like they got a lump of coal. Homeowners who don't itemize their deductions will lose a tax break for paying local property taxes. http://www.cnbc.com/id/40806671
At least I get something for my property taxes. My city has an excellent library. There are many parks in my neighborhood. If I call the police or paramedics, they will show up in about 60 seconds. They risk their lives for me. I am happy to pay their pensions. On the other hand, consider the much greater sums I am sending to Washington, to blow things up (including other Americans) in far away countries filled with people who are not even bothering us, buy heart stents for people who have eaten crap and smoked all their lives, send welfare checks and food stamps to drug addicts, and pay a bunch of lazy bureaucrats who can't find their ass with both hands.