Monday, May 23, 2005

Back to Blogging

Tracy Warner has three new posts on his blog today, one particularly lengthy (a good thing!) on forecasted changes in Indiana property taxes. His argument, that while property taxes aren't that fair, sales tax is even less so, doesn't leave us convinced.
Both the property and sales taxes are regressive – they are not based on ability to pay – but the sales tax is even more regressive than property taxes. The owner of a $500,000 home can afford to pay much higher property taxes than the owner of a $50,000 home, while a millionaire pays the same sales tax on a bottle of aspirin as someone in poverty. Plus, businesses pay property taxes, while sales taxes weigh more heavily on individuals than businesses – thus the “reform” transferred some tax load from businesses to poor people.
But didn't the person who bought the $500,000 also have to pay sales tax, too? And/or a real estate tax? And don't "businesses who pay property taxes" also pay sales tax on the items they buy? And what about individuals who own businesses (as most of the businesses in NE Indiana are not incorporated), don't they also have to pay sales tax? Businesses and individuals are not mutually exclusive, something we think cuts the legs out from under what Tracy's trying to say.

Still, it's a good post, with a lot of history about Indiana property taxes, as well as Tracy's prediction of how the rules might be altered yet again. You ought to check it out.

NOTE: We would link directly to his post, but his blog doesn't seem to supply unique links to individual posts, which is something Tracy might consider asking the JG webmaster to add.

UPDATE: We tried posting a comment to Tracy's blog, but apparently the Journal likes to screen all of the reader comments.
All posting are reviewed before releasing to the public web site. Normal review interval is approximately 24 hours.
And here we thought the JG was the champion of the little guy...not afraid of him. It's a blog, folks; you need reader comments to make it work, and building in road blocks isn't going to help it grow. (Just our advice.)

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