Sneaky Progressive Tax Day -- 2005 Edition
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I recently received my second annual property tax rebate from the New York City government.
So here's my second annual complaint about it.
Why exactly is the City intentionally overtaxing property owners only to give them $400 rebates every year?
Well first of course is the brazen election-period timing — how else to explain a tax rebate in October, less than one month before Election Day?
More importantly, however, is the desire to sneak in a stealth progressivity into property taxes. Under a sane fiscal policy, property taxes (like income taxes) would be strictly proportional: own more property, pay more taxes.
But in a city that is over 80% liberal Democrat, "mere" proportionality in taxation is unacceptable. The rich simply must be surcharged in some way. So one of the most liberal Democrats in the city — Mayor Michael Bloomberg — stopped pretending to be a Republican just long enough to craft this rebate nonsense.
Here's how it works: Every property owner who pays at least $400 in property taxes gets a $400 rebate, regardless of how much they actually paid.
Pay $401 in property taxes, get $400 back. Pay $4,001 in property taxes, get $400 back. Pay $40,001 in property taxes, get $400 back.
Suddenly a proportional tax becomes progressive.
And since the progressivity is cloaked in a rebate check, some people will actually be grateful for it.
Despite the fact that the first rebate was rationalized as the result of an "unexpected" surge in revenues, the rebate returned for a second year. Never mind that checks get lost or misdirected in the mail (no direct deposit is available). Never mind that paying property taxes only to get a rebate can complicate people's income tax returns. Never mind that a $400 rebate, like income tax withholding, constitutes a compulsory interest-free loan to the City. Never mind any of that — expect the tax-and-rebate system to become permanent. It's just too deliciously obnoxious for New York's liberal politicians to give up.
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I will note, however, that this year, unlike last year, neither the rebate letter nor the check were signed by Mayor Bloomberg himself as a petty propaganda stunt. Because he doesn't believe in petty propaganda stunts.
So this year it was all wound and no salt. B.F.D.
So here's my second annual complaint about it.
Why exactly is the City intentionally overtaxing property owners only to give them $400 rebates every year?
Well first of course is the brazen election-period timing — how else to explain a tax rebate in October, less than one month before Election Day?
More importantly, however, is the desire to sneak in a stealth progressivity into property taxes. Under a sane fiscal policy, property taxes (like income taxes) would be strictly proportional: own more property, pay more taxes.
But in a city that is over 80% liberal Democrat, "mere" proportionality in taxation is unacceptable. The rich simply must be surcharged in some way. So one of the most liberal Democrats in the city — Mayor Michael Bloomberg — stopped pretending to be a Republican just long enough to craft this rebate nonsense.
Here's how it works: Every property owner who pays at least $400 in property taxes gets a $400 rebate, regardless of how much they actually paid.
Pay $401 in property taxes, get $400 back. Pay $4,001 in property taxes, get $400 back. Pay $40,001 in property taxes, get $400 back.
Suddenly a proportional tax becomes progressive.
And since the progressivity is cloaked in a rebate check, some people will actually be grateful for it.
Despite the fact that the first rebate was rationalized as the result of an "unexpected" surge in revenues, the rebate returned for a second year. Never mind that checks get lost or misdirected in the mail (no direct deposit is available). Never mind that paying property taxes only to get a rebate can complicate people's income tax returns. Never mind that a $400 rebate, like income tax withholding, constitutes a compulsory interest-free loan to the City. Never mind any of that — expect the tax-and-rebate system to become permanent. It's just too deliciously obnoxious for New York's liberal politicians to give up.
---
I will note, however, that this year, unlike last year, neither the rebate letter nor the check were signed by Mayor Bloomberg himself as a petty propaganda stunt. Because he doesn't believe in petty propaganda stunts.
So this year it was all wound and no salt. B.F.D.
Related Posts (on one page):
- Should There Be a Tax Credit for Rent?
- Sneaky Progressive Tax Day -- 2006 Edition
- Sneaky Progressive Tax Day -- 2005 Edition
- Anybody But Bloomberg: "Happy Sneaky Progressive Tax Day"
Posted by KipEsquire on
16 October 2005
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