Posted by Sometimes when they raid the whorehouse they also take the cleaning lady. Anonymous
While driving through River Oaks to meet a client (at the Starbucks near RO: let me not brag), I was reminded of the recent “Tax Reform” act of last year – one of which included a cap on al tax expense for itemized deductions of $10,000. I will accept the assertions that the measure was designed to punish “Blue” states which have high income taxes. But this is a Red neighborhood in a Red state which was punished about as much as any in California.
In Texas, we like to delude ourselves that we do not pay a state income tax. Does this mean Texas government is twice as efficient as states which levy income taxes, such as Louisiana and Georgia? Hardly: we are the state that spent two legislative sessions last year trying to pass legislation along potty lines.
At one time, when our daughter was at Agnes Scott, my wife and I looked at homes in the Atlanta area because there seemed to be a Montessori school on every corner. The property taxes listed for homes were about half the tax for similarly priced homes in Houston.
No, in Texas we have income tax in the form of property taxes. A person with a million dollar home usually has about twice as much income as one with a half-million dollar home and pays about twice as much real estate tax. (I have often said that I don’t care if I AM a millionaire as long as I can live like one.)
Take the poor River Oaker (Oakite? Oakser?) trying to maintain his home on a paltry two million dollar a year salary. Assume as a given that other items in the act (such as the “pass-through” deduction and the rate reductions) will disproportionately benefit him. People never to take the rough with the smooth or the swings with the roundabouts. If a person pays $60,000 to California in income tax and $60,000 in property taxes, such that he loses $110,000 in itemized deductions, is he harmed more or less than the taxpayer who pays $120,000 in property taxes to Houston, HISD, and Harris County. And does the RO resident care if someone in California is harmed the same or even more? His (or her) only concern is that he has lost $110,000 in deductions. (Actually, probably more like $115,000, since his sales tax probably averages about $5,000 per year, but let’s not quibble.)
So let us say a prayer for these Red residents who have been hurt by their brethren. Perhaps we should pass the hat because they may no longer be able to eat at Benjy’s because of all the tax dollars wrested from them. Life can be so unfair.
Death and Taxes 