Thursday, 31 March 2011 by Advantax
Where’s the plunger when you need it? Have you ever been stuck in a bad situation because there simply was no plunger available when it was most needed? It’s quite a sinking feeling…. at least that’s what I’ve been told. My friend recently experienced a delay while traveling because of this very situation. It seems that the airplane toilet was clogged and no one could find a plunger. After waiting a long time, maintenance was able to locate a plunger and resolve the situation so the plane could take off.
Do you feel like we’re getting clogged up with property taxes? According to the US Census Bureau local governments were on track to collect more than $475 billion in property taxes in 2010. That is an increase of 92% from the estimated $247 collected in 2000. In that same period inflation increased only 27%. In other words, property taxes have outpaced inflation by over 340%! By contrast, we have experienced the biggest real estate downturn of our lives. Real estate values on a national perspective are estimated to have dropped as much as 30%.
Values plummeting while property taxes increase at such a rapid pace – the water is starting to rise. A 92% growth in property taxes means that local government have increased their budgets and have spent 92% more than in 2000. Is it because of expectations and demands for services that local government provides? Is it because it’s easy to spend other people’s money? Now, where is that plunger?