Bald Eagle in Front of FlagBy Selwyn Duke

When North Dakotans go to the polls today, they'll have a chance to strike a blow for freedom.

They can make their state the first in the nation to ban all property taxes.   

With such levies having become a fixture on the American landscape, the ND proposal is seen as being radical.  But it is property taxes themselves that are radical. 

I've always objected to property taxes because they do violence to the concept of property ownership.  After all, what am I describing when saying the following: I have to pay a fee on a regular basis to stay in a home or apartment, and if I don't I will be evicted from it?

That is the status of a renter — not a landowner.


Any which way you slice it, property tax is rent you pay to the government.  Sure, we don't call it that.  But if the effect is the same, what's the difference?  And government, with its "surcharges" and "assessments," is infamous for conjuring up euphemisms for its excessive and unjust taxes.

Note that in my fourth-paragraph question I wrote, "I have to pay a fee on a regular basis to stay in a home or apartment…."  There's a good reason why I didn't write "my home or apartment."  After all, if I can be evicted for not paying rent-by-another name, do I truly own it?

In reality, our property-tax system smacks of Old World Manorialism, which became "patroonship" in colonial New York and New Jersey — only Big Brother is now the Lord of the Manor.  And woe betide the peasant who can't pay his rent.

Just consider the plight of a responsible American family that, due to illness, our poor economy or the death of a breadwinner, can no longer afford to pay rent to the Big Brother of the Manor.  Their home may be paid off; they may have lived in it for 20 years.  But none of that matters when you don't really own it but are just a renter.  They'll be out of luck and perhaps out on the streets, joining the ranks of the homeless.    

Despite all this, many find it unfathomable that we should end our modern-day manorial system.  As The New York Times writes about the ND proposal:

An unusual coalition of forces, including the North Dakota Chamber of Commerce and the state's largest public employees' unions, vehemently oppose the idea, arguing that such a ban would upend this quiet capital [Bismarck].  Some big unanswered questions, the opponents say, include precisely how lawmakers would make up some $812 million in annual property tax revenue; what effect the change would have on hundreds of other state laws and regulations that allude to the more than century-old property tax; and what decisions would be left for North Dakota's cities, counties and other governing boards if, say, they wanted to build a new school, hire more police, open a new park.

Ah, the old "where will the government get the money?" line.  Frankly, I don't worry about such things because that should never be the first question when pondering tax issues.  It should be: where will the people get the money?  It is, after all, theirs, and isn't this supposed to be a government of, by and for the people?

Of course, the elimination of property taxes would mean that governments would have to adjust their tax structure.  But so what?  Doesn't the citizen who falls on hard times (often due to bad government policy, mind you) and whose home is seized by the Big Brother of the Manor have to adjust?  Does government worry how the people will adjust when making some sweeping policy change (e.g., ObamaCare)?  It's time for the government to do some adjusting for a while.

Unfortunately, the elimination of modern-day Manorialism is a tough sell even among many conservatives.  To be "conservative," after all, is to oppose big changes and preserve the status quo.  As an example, the Times writes, "For his part, Gov. Jack Dalrymple, a Republican, said he opposed the property tax ban.  'It's mind-boggling, really,' he said, in an interview, of the effects of such a ban.  'We'd be changing everything, frankly.'"

All I can say is that were it not for a willingness to change "everything," our nation would never have been founded (see Washington, Hamilton, Paine, Madison, Adams, Henry et al.).

The First Continental Congress's Declaration on Colonial Rights stated that by "the immutable laws of nature" we are "entitled to life, liberty and property: and… have never ceded to any foreign power whatever, a right to dispose of either without…consent."  Shouldn't the same apply to a domestic power?

And then we have to ask: how foreign have our domestic powers become?

       © 2012 Selwyn Duke — All Rights Reserved
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3 responses to “North Dakota Votes on Abolishing Property Taxes”

  1. Dale Avatar
    Dale

    I’d like to know who’s behind this. Who paid for pushing this idea? It seems to me that property taxes serve another function besides revenue and that is stopping the very rich from owning ungodly amounts of land and just sitting on it. I don’t want to see a situation where most of the land has been bought up by the rich and the well-to-do, and the rest of us peasants really becoming “just renters”.
    One other thing, you really should have some idea of how the tax structure should be adjusted before ending property taxes. You may find the law of unintended consequences kicking in.

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  2. P Avatar
    P

    It is simple really.. A primary residence is void of property tax. All other properties, those deemed commercial and those as rentals, vacation or other are taxed. We should have the right to a primary residence that we truly own, but enter HOA.. Don’t pay the fee, lien on your home. We have created an incredible storm for ourselves, but one that can be weathered.

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  3. peaches Avatar
    peaches

    There are those, who shall remain nameless, who propose that all shared benefits, roads, etc. could be payed for by private initiative. Of course we’d have to be half alive and awake to figure out exactly what it is “we” should have a share in.
    Then again we could keep the same system whereby the local government figures out how much property tax the locals will bear, then provides all kinds of exotic electives in the local high schools that keep 10 to 20 students per school from dropping out after 10th grade.
    @ Dale the Naif
    Also, I don’t think property taxes dissuade the insanely rich from owning insane amounts of property. Just as fees per transaction don’t keep them off e-trade, etc.

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