The Property Tax System

The property tax system is a hot topic with an immeasurable amount of citizens, who often find the system to be unfair. Based on the state of the economy, the assessment on property fluctuates negatively or positively. In addition, politics often contribute to altering the true value of property, which in itself puts a dark cloud on the process of assessing property. Furthermore, If the property assessment is greater than when purchased, the property owner can make a profit only when the owner sales the property (Lynch and Smith). However, increased property values can produce special hardships for property owners who do not sale their property. A heightened property assessment, which is beneficial for the government, may increase property taxes beyond their ability to pay taxes. Furthermore, if property is assessed for less than when purchased, it can be detrimental to the owner, who often uses property as an investment towards retirement.

Households that bring in fewer funds are held at an unfair advantage because property taxes are not access at a percentage of the household income. Therefore, a lower income property owner pays the same property tax ratio as a higher income property owner, which results in the lower income households having less remaining monetary assets and an increased likelihood of falling behind on paying taxes.

The creation of blight is often a product of the property tax system. Delinquent taxes often leads to homes being empty and collectively produces an area where crime increases in an area that is virtually absent of tax revenue.

Tax expenditures are simply legal deductions or spending programs authorized by the government, which provides special tax breaks, thus reduces the tax burden on the taxpayer. There are six types of tax expenditures identified in the U.S. Congressional Budget Impoundment Act 1974 (Government Accountability Office). Tax expenditures are exclusions from taxable income, exemption from...