ASD Raise Taxes 5.85% In 2015

WFMZ TV is reporting , "The Allentown School District Board of Directors on Thursday night approved a 2014-2015 budget... " blah, blah, blah.

I could point out that my Social Security benefit check was raised only 1.5%. I could also point out that my teeny tiny IRA CD is earning less then 2% interest or that my only other source of income, my 401k earnings rate has been fluctuating around 4%-5%. Which might be better for me then some who are working and haven't had any raises at all.

Let me put it this way...
What the hell am I getting for my monthly $200.35?

That's how much it will cost me with this 5.85% increase. That may not seem a lot to some people, but I sure can think of a lot better ways I could use this money.* Since I'm driving around in a 24 year old van (the wife's is 23 years old) it would afford us monthly payments on a brand new car. Lord knows we need one.

* The shingles on our roof are almost 30 years old. Same with the furnace

* The money could also be used towards our annual $3,000 out-of-pocket medical expenses.

* My tree out front has grown over my and the neighbor's roofs. I need to take care of that sooner rather then later. Especially if the city tags me it will no longer be a matter of choice

* The concrete behind my garage has crumbled between it and the street.It's not that the house looks like crap, but these things will have to be done surely within a year to 5 years at most. That $200.35 school tax per month over 5 years adds up to $12,021. That may not pay for it all, but that $12,021 would benefit me far more then draining down my remaining retirement funds to pay for them. Without factoring in future school tax increases.

Oh we could sell the home and go rent. Don't think we haven't thought it through, but that money would only last about 10 years at today's rents and future increases. So here's the bottom line... We, like many others on fixed incomes, are being drained by ever increasing taxes that exceed all cost increases in the other sectors of the economy. There will come a time I like so many others (not only those on fixed incomes but workers too) will be forced by these taxes out of our homes and apartments.

As each of us continue to go broke while the school system is bleeding money it's only a matter of time when the shit hits the fan (if it hasn't already). No matter how you slice it, an investment of $200.35 a month for education in no possible way is providing us (or others) a direct return that benefits us. This isn't a matter of being selfish, but rather economic survival.

There's A Rather Simple Solution
Increase sales taxes 2%-3%. Everyone spends money on something that's taxable. Those that have more, spend more. Those that have little spend little on taxable consumer items. We are told education benefits us by developing the skills needed into today's marketplace. Well it seems to me if consumers in the marketplace benefit the most, why not tax them the most to pay for it?

There is little if any correlation between property ownership and the cost for education. On the other hand, large purchasers receive direct benefits from the items or services that require the skills needed for them.

Schools whine that this kind of revenue fluctuates too much. Well it does for all of the rest of us too. None of us are guaranteed next year we will make the same money as this year. But oh no, not the school district even if a homeowner loses his job or retires to a fixed income. They still expect the same amount of money.

Once these city, country and schools taxes have bled the property owners dry it will be time to turn off the lights. The party will be over. That day may not be as far away as some believe.

Property taxes are the most evil of all taxes
Any other item (other then maybe a car) when you buy it the purchaser pays a one time tax. Every time a property is sold sales taxes are collected again. Over the life of a home it can be sold several times. Each time the home is sold it's usually for more then the time before. Henceforth sales taxes are collected several times over at ever escalating amounts. Even these taxes pale in comparison to the real estate taxes the owner pays in between.

If these taxes were for investment that would be one thing, but someone buying a home for their primary residence should not be taxed in the same way. I have no problem paying my fair share, but for God's sake.... I've lived here for 24 years and added up the sales and real estate taxes we've paid. It adds up to over 75% of what we paid for the home!

You see one never truly owns their home other then on paper. The banks hold the note until the home is paid off. They get 1 to 2x's the purchase price in interest.. After that a homeowner then has to pay real estates taxes for about the same amount of money they bought it in accumulated taxes over the next 30-35 years for the rights to continue living in it.

For the government this a whole lot like homeowners paying all the expenses to repair and maintain while the government collects all the financial rewards.