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Property Tax Increases, Money Well Spent?

Property Tax Increases, Money Well Spent?

If you're like most apartment owners, you're damned mad to see how much your property taxes have increased. You feel helpless to do much because of the dire straits the various beneficiaries of your taxes are in. So, why are they going up?

Look no further than to your own state Legislatures and Governor. Many states are giving tax dollars away to their cronies, wealthy individuals and corporations, in the name of economic development. For example, in Kansas, under the PEAK program (Promoting Employment Across Kansas) employers get to keep 95% of employee withholding taxes which could be going to help pay for schools, libraries, roads, and hospitals.

Another example is the Sales Tax Revenue bond program (STAR). Bonds were issued to build projects in the Legends at Village West such as the Nebraska Furniture Mart and Livestrong Sporting Park. The occupants enjoyed owning the buildings while the sales taxes of patrons paid for the bond costs.

With both programs, taxes were being distributed to a few wealthy individuals and corporations instead of being used by the state to fund schools, infrastructure and social programs for its citizens.

Now that's what I call redistribution of wealth.

The extension and expansion of these programs has been supported by Kansas State Governor Brownback, a big advocate of limited government. Nineteen states have programs similar to the PEAK program, only instead of employee withholding being used to fund bonds, they are remitted to the state, and the employers get a dollar-for-dollar tax credit thereby wiping out the benefit to the states in favor of the employers.

If you want to learn more, see Pulitzer Prize winning investigative reporter David Cay Johnston’s book Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense (and Stick You with the Bill) or Bob Weeks’ blog for the Voice for Liberty in Wichita.

What some espouse as limited government is government currying favor on cronies at the disadvantage of everyday citizens and commercial property owners being required to make up the difference. Wake up and get involved.

Ward a. Katz, President and CEO, m-fishency.com

Blog: www.multifamilypropertyevaluation.com

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Appreciate your knowledge and case studies provided in “What Every Investor Should Know About Cash Flow”. I have been reading the book repeatedly to gain clarity and understanding for analyzing properties that I’m looking to purchase in commercial real estate this year

  John Jennings

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