On 2012-05-21 13:29 , Stefan Patric wrote:
On Sat, 19 May 2012 15:19:16 +1000, Trevor wrote:

"Stefan Patric" wrote in message
...
You need to brush up on how Property Taxes are calculated. Property
taxes are not the same as Personal Property taxes. Basically, in the
US, the formula is:

((Home's value * Assessment Rate) - Exemption Credit) * Property Tax
Rate = Property Tax

When the Market Value of a home increases, the tax increases. It can't
do otherwise unless the Assessment and Tax rates are LOWERED or the
Exemption INCREASED. All three of which require a time consuming
legislative process to change. And in some states in the US, a vote by
the people in a general election, too. Plus, the amount of change and
the maximum that can be charged are usually limited by law.


OK, over here they just make them up to suit the budget each year. Seems
your system sucks big time, so blame whoever made it law. Although ours
is no better when greedy governments can easily decide to increase rates
by multiples of the inflation rate every year, whether house prices go
up OR down :-(

Seems like your system is a lot worse than mine with bureaucrats setting
variables at will each year with little or no control. At least with
mine, variables and rates can't be changed easily or quickly, or without
legislative, and in some places the people's approval. However, the flaw
in the calculation is how the Home's Value is determined. One would
expect that replacement cost, that is, the cost of actually building that
home "today", is the best, but that method is costly. It requires actual
periodic appraisals. The most common method, however, and cheapest is
comparables or "comps." That is, your home's "value" is what other homes
similar to yours in your area have sold for that year. This method, as
it's not regulated, in a runaway market results in vastly inflated Home
Values, and thus vastly inflated tax bills even when the other variables
do not change. That's one of the things that busted the housing market
in the US.

I'm not familiar with Australia's economy or its banking laws, so I
can't speak on that, but in the US, in hindsight analysis, it was
determined that a piece of legislation championed by then President
Clinton was the single pebble dropped into the sea that became the
tidal wave which devastated the US and, ultimately, the world's
economies. This was reported in newspapers, magazines, TV, etc., over
and over (with extended commentary) for weeks a few years ago at the
height of the recession here.


"Determined" by who? And what proof did they use to arrive at that
conclusion?

Economists, financiers, financial analysts, think tanks, even government
investigators, etc. Certainly, not your average man on the street
opinions. As far as "proof," as in any financial/business investigation,
they started with the numbers, and followed the money.

Don't believe everything you read in the right wing press! :-)

The "press" here--TV, radio and print--is, by and large, very much left
leaning. Although, they deny it.;-) And even they reported it pretty
much as I stated. Had to or they would have lost credibility.

BS. That was one element (highly supported by Republicans).

Time has a good list of "culprits" he

http://www.time.com/time/specials/pa...877351,00.html



--
"Civilization is the limitless multiplication of unnecessary necessities."
-Samuel Clemens.