The Real Estate Transfer Tax is Communistic.
There is a growing trend (along with eminent domain) for states, counties and municipalities to impose a tax on every real estate sale based on the value of the home. For example, if you sold your $200,000 home, you would owe between $800 and $2000 in additional taxes.
Why? For what reason is this tax levied? Are there additional infrastructure needs based on the sale of your home? No. Those were already paid. Are there additional service needs based on the sale of your home? No. These are accounted for in property taxes. The reason is simple; it is a plain old land grab by the government. Any other explanation is merely spin.
But, it is even more than that: What this amounts to is government seizure of your property. Let me explain.
Let’s say you and I form a partnership. We are going to fund this new venture with $100,000. You are going to front $99,000 and I will pitch in $1000. That gives me a 1% stake in the venture for my investment. Later, if we sell that company for $400,000 you would receive 99% of the proceeds and I would receive 1% (or $4000) because of my investment. That is fair.
Now let’s say that you invest the full $100,000. You own 100% of the venture. One day I come along and say to you, “When you sell, I will receive 1%.” Would that upset you? For all intents and purposes, I just claimed 1% ownership in your venture having invested nothing.
That is what your government is doing. They are seizing 1% of your home while not making one red cent in payments for it. It is disgusting. It is the new version of eminent domain.
It is time to put a stop to the thievery.
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