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1.
Eliminate the local school district’s ability to impose
property taxes (with some exceptions.)
Currently
local school districts have two property tax levies. One
tax covers the capital facilities (buildings) and the other
goes towards operations and maintenance. The local school
districts impose the highest property taxes by far compared
to other local taxing entities. By eliminating the
district’s portion of the property tax, most people would
see a decrease of up to 60% of their total property tax
burden.
If we were
to simply eliminate the school district’s property tax
authority without making it up elsewhere, it would harm
public education. So what do we do? This brings me to the
second part of my tax plan.
2. In
order to make certain that cutting the property tax does not
harm education, and to make the tax cut revenue neutral, we
would shift the tax burden from the property tax to the
general sales tax. To keep this plan revenue neutral, the
state would increase the general sales tax (not the food
tax) by around 2.25%. We would then use this additional sales
tax revenue to “back-fill” and fund the local school
districts.
Of all the
taxes imposed, the general sales tax is one of the fairest.
The more goods you consume, the more you pay, if you want to
pay less sales tax, then you simply adjust your shopping
habits. It is a fair user tax. |