Off Topic — HabitableZone

Off Topic » in reply to Now check you electricity bill.

There so some who claim Americans are undertaxed

but they base that statement on the even higher tax rates many other countries charge. Americans revolted against the British for "taxation without representation." The tax rate at the time was 10%. These little taxes have been going on for decades, just most of the time they were buried out of sight. It's like the gasoline tax. In some areas like mine, there's a sign plainly on the pump that states 40.3 cents per gallon is to pay for Colorado and federal gasoline tax. In most states, the people simply don't know how much of the price is tax and are quick to jump on the oil companies for high prices.

The Prop 13 tax revolt in California came about because rapidly rising real estate taxes were driving up the assessed value of everyone's property, not just the rich. In a recent op-ed piece, the author (an economist) mentioned that real estate values in much of California quadrupled in the 1970s. If the property tax also quadrupled based on the assessed value, many people faced the prospect of being taxed out of their homes. The ones most impacted by the rising property taxes were fixed income and lower income home owners, not the "evil" rich.

Part of the problem seems to be a ratchet effect where government spending can never be cut regardless of economic conditions. In times of recession, many people have to get by with less income. Why is it seemingly impossible for government to do the same?

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