Property Taxes Change Meaning of Home Ownership

Mr. Shedlock sheds a new light on home “ownership.”  As shortfalls weigh on local and state budgets, increases in property taxes are a favored way to make up dwindling revenues.  Unfortunately for homeowners, such taxes act as perpetual liabilities.  As the economy remains on thin ice, fewer are able and willing to claim or maintain the title “Homeowner.”  Changes in how Americans view the concept of ownership are redefining the American middle class and the fundamental economic relationships of all Americans.  Take a look!

Perpetual Liabilities: An endless note on your house you can never pay off (by Mike Shedlock)

Image from Monty Pelerin's World

Imagine the perpetual loan, a loan that no matter what you do, you can never pay off. To help conceptualize the idea, think of it as a perpetual interest-only loan in which you are forbidden to completely pay off principal.

As preposterous as that deal may sound, it is highly likely you are in one.

If you own a house, you are in exactly that deal, except it conveniently not called interest. Instead it’s called a property tax.

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