What does it mean for the state to “fund property tax relief?”
The state generates its revenue through the state income tax, the state sales tax, and the countless other “service fees” that it imposes. None of these are taxes on wealth. They are all taxes on either income or consumption. The only tax on wealth currently available to government is the property tax.
The simple problem of this “property tax relief” plan is that it shifts the burden away from property owners, whom we will label “the rich” for the purposes of this point; and it shifts that burden to those who pay income tax, whom we will label “the working class.”
Most Republicans have never met a tax cut that they do not like, which is good since all taxes are too high. But the Democratic Party historically attacks “tax cuts for the rich.” They get away with this because most people don’t realize that – of course the rich will benefit the most from tax cuts, under the progressive tax system, the more you make; the more you pay.
Now, not everyone in society owns their own home, which is still part of the American Dream. However, politicians including Governor Hoeven have devised a plan to take some of the surplus and hand it to local governments for the hope they will pass along the savings to you, the taxpayers. Everyone cites the latest oil boom for the excess revenue, but the simple fact is – that surplus is over taxation of the citizens of North Dakota.
More specifically, it is over taxation of the working people of North Dakota. The median income in the state is somewhere around $31,000. The first tax bracket of 2.1% extends to an income of $30,650 for a single wage earner. This means that barely less than half the state’s workers pay around $643 per year in state income tax, and just over half pay more. Once it reaches the state coffers, the money isn’t segregated so there is no way to tell whose is where. For this fact, the surplus belongs to all taxpayers – not the governor, not the legislature, not the teachers that are underpaid, and not the state workers that do deserve a raise like anyone else.
So this grand plan that the governor proposes and much of the legislature seemly likes really is a “tax cut for the rich” paid for by “the working class.”
Hopefully the governor will realize that all taxes are just to high, if they weren’t there would not be $600 million dollars wanting to be spent by politicians. Income taxes are too high because the state is bringing in more money than it needs, and property taxes are too high because local officials are spending too much. It really is that simple.