Mississippi is struggling with the reality that there is not enough cash to pay for the programs they have, much less any new programs. The tax structure has been the problem….give aways to business and increases on others have made the whole system a joke at best. It is time to rethink taxes, especially property taxes.
May I see a show of hands on the people that pay NO property tax thanks to Homestead Exemption?
I hate to be the one that pops a bubble here….but…you do realize that property taxes pays for such services as schools and funds many local programs, right? Times are tough and getting tougher every year and every year the local politicians find ways to tax everybody. Eventually reality will set in.
For too long Mississippi has given away revenue with the hope of attracting business and then asks the working majority to foot the bill. There is a better way…and it would be a win-win scenario.
By making the Land Value Tax the rule, then the Coast and all of Mississippi could have the needed funds to use where it is needed, whether it is education or Medicaid or wherever.
Land rent means taxing land. Not buildings, not work, not commerce, just bare land. Or if land has buildings (as most land has) then the equivalent value of the land if it had no buildings.
Land gets its value its improvements (buildings etc) and from its location. The improvements were made by the hard work of the owners. But the location has value because of what society does, because of roads and schools and good neighbors.
If society taxes buildings and improvements, it steals people’s hard work, their time and energy, their life. Most taxation is therefore theft. But if society taxes the location, then it simply claims back the value it creates. Land rent distinguishes between the individual’s property and society’s property.
If you tax work, the amount of work goes down, because some work becomes less profitable. But if you tax land, the amount of land remains the same. So if you want to encourage work, you should tax land, not work.
Land rent is the only guarantee of fair property rights. If people can charge rent but they pay no rent themselves, eventually one person or one elite will own everything and nobody else can have any property unless it suits the elite. To see why, play the game Monopoly. Monopoly is based on “The Landlord’s Game,” invented by Lizzie Magie as a way to show why we need land rent.
Land rent is the most efficient way of creating wealth because it gives resources to those who can use them best (that is, those who can generate the most wealth from the land).
Land rent creates economic justice, by ensuring that everyone keeps the wealth they create, and any extra is given back to society. So nobody has unfair privileges, and everyone has an equal chance to succeed.
Land rent provides a fair system for all, because it generates wealth for society, yet it is so simple that corruption and inefficiency have nowhere to hide. This is a definite plus, for today, those are the major problems with the taxation of land.
Even the Mississippi Economic Policy Center has called for the state to revamp its taxation system, then why not take the opportunity to truly revamp the tax policy? Mississippi is always in need of funds, but its ruling few refuse to find a more equitable system. The economic situation that Mississippi and the country finds themselves is a perfect time to find a more efficient tax system.