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In recent weeks
I’ve written about how inflation is alive and well, especially when it
comes to the cost of housing, energy, gas, and education. But perhaps
the most worrisome type of inflation comes in the form of steadily rising
property taxes.
Property taxes
keep going up for most Texans, and people living on fixed incomes are
especially concerned. They often find their homes being reassessed every
year at values far beyond what they originally paid. So an annual
property tax bill that once was a manageable $500 or $700 might now be $1500
or $2000.
Of
course Texas tax laws are made in Austin, not Washington. Assessments
are made at the county level. And the Texas legislature recently
passed HB1, which does provide some real property tax relief over the next
three years.
But as
a Texas taxpayer myself, I would like the state legislature to
consider an additional proposal.
Specifically,
end the practice of annual assessments. Properties should be reassessed
for tax purposes only when sold or ownership is otherwise transferred.
The current system is terrifying for seniors forced to pay more and more each
year, with no idea where they will find the money. And unlike other
bills, property taxes must be paid or else one’s home can be taken
away. My office hears from seniors who may have no choice but to leave
Texas altogether because they cannot live with the uncertainty of arbitrary
property tax increases. They literally fear losing their homes.
At the federal
level, Congress can act now to provide relief to those paying high property
taxes. Although property taxes are deductible on your federal tax
return, the current rules require taxpayers to itemize to take the
deduction. Many people have a hard time paying $2,000 or $3,000 in
property taxes, but they don’t have enough other itemized deductions to
exceed the standard deduction.
I introduced HR
5860 to address this problem. This legislation creates an “above
the line deduction” on the first page of your 1040, meaning you can
deduct every penny of your property taxes without itemizing and still enjoy
the full value of your standard deduction. Even taxpayers using 1040A
or 1040EZ forms can take the deduction. This means average and lower
income taxpayers can take the same deduction for their property taxes that
high-income taxpayers with complex deductions now enjoy.
Property taxes
are only one piece of the puzzle. Overall, most Americans hand over at
least 40% of every dollar they make to government at some level. The
appetite for your tax dollars—whether at the federal, state, or local
level—will continue to grow year after year unless we begin to rethink
the proper role for government in our lives. If you think you’ve
been squeezed for every last drop of taxes, demand that both your
representatives in the statehouse and Washington do something to address
spiraling property taxes.
Ron Paul
www.house.gov/paul
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other articles by Ron Paul
Congressman
Ron Paul of Texas enjoys a national reputation as the premier advocate for
liberty in politics today. Dr. Paul is the leading spokesman in Washington
for limited constitutional government, low taxes, free markets, and a return
to sound monetary policies based on commodity-backed currency. For more
information click on the Project Freedom website.
Published
with the authorization of Dr. Paul.
Copyright
Dr. Ron Paul
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