What should we avoid? Another quick fix that quiets those taxpayers who complain the loudest or represent the most votes but leaves the state’s antiquated property tax system intact. Short-term solutions such as the elimination of the inventory tax simply redirect the burden of property taxes for political purposes. They exacerbate rather than address the larger problems that are inherent in our property tax system.
The solution is obvious: Call your elected officials and tell them it is time for Indiana to get rid of property taxes.
It's quite rich to hear Villwock say we should avoid a quick fix when he's advocating that we abolish the tax altogether. And then he has the gall to rail against "those taxpayers who complain the loudest" - what exactly does he consider his organization? Of course Villwock only leaves the reader with generalities when confronted with the idea of what might actually replace the property tax revenue stream:
What should replace property taxes? A tax that is based on economic activity, such as an income tax or a sales tax, would, by its very nature, reflect the taxpayer’s ability to pay.
Ok, let's be honest about what would happen to the income tax. The Allen County property tax collections for 2007 will be approximately $451 Million. A 1% increase in the county income tax would generate roughly $71 Million in revenue. So we would have to raise the county income tax by 6.3% to make up the difference. Does Villwock know that this would put the break even salary point at around $24,000? In other words anyone making over that amount would likely pay an increase in overall taxes.
And how exactly does a sales tax represent one's ability to pay? That statement alone shows Villwock has a fundamental misunderstanding of taxes in general as a sales tax is about the most regressive tax imaginable.
So who would be affected the most? The middle class of course. Do we really want to continue to break the backs of working class people so the wealthiest among us don't have to pay their fair share? Make no mistake - something needs to be done. But while Villwock and others' ideas may sound populist they are no friend to the working people of this state and thus should not be taken seriously...