I narecentconversationwitha New Jersey senator, one reason given as to why eliminating the property tax and replacing it with an income tax cannot be done is that it could be construed, or actually become, class warfare. The concern is that the so-called rich would be unfairly targeted to pay more taxes than their fair share for no other reason than that they are rich. So, to legislate based on such motivation is not right and would be divisive.
If that were the case, I would agree. We should not unfairly target one class of people based simply on who they are or what they have. But this is not the case here. It is not the well-off who are not paying their fair share. In fact, the reverse is what is the de facto situation in New Jersey.
The property tax is inherently skewed against middle-, low- and no-income taxpayers. In actuality, in an ever-increasing degree, it inordinately benefits those who have the greater income.
In fact, the property tax system does exactly what the decriers of class warfare ostensibly are against: the property tax automatically causes those of a certain class to pay an unfair share of the tax burden. It targets those at the bottom. The less income you have, the greater percentage of that income goes to the property tax.
For example, the person with an income of $60,000 paying $6,000 in property taxes has an effective tax rate of 10 percent. The person making $120,000 and paying $6,000 in property taxes has an effective rate of 5 percent. The person making $360,000 and paying the same $6,000 in property taxes is paying a measly 2 percent rate. Compare that with the retiree with $30,000 income who has an effective tax rate of 20 percent. That is 10 times the so-called wealthy taxpayer.
I have not factored in how abuse of the farm assessment – something only possible for the wealthy – exacerbates the disparity even more. But when the guiding principle
is every man for himself, taking advantage of your neighbor transcends even class loyalty.
There is already class warfare going on, and it is against those at the bottom, not those at the top. The demand for equity to be brought to the system is not based on some Marxist notion that the rich are inherently evil and automatically worthy of contempt. It is based on the biblical and basic American ideal of treating all equally and fairly, of not favoring one class of people over another. The property tax favors the wealthy at the expense of those less well off.
We must put a stop to the class warfare against those least able to afford it. End the property tax and restore fairness and equity to how we pay taxes.
John C. Hendrickson
Red Bank www.save-our-homes- ourfuture.
blogspot.com