Property Taxes and Public Education Financing

Tom Lehman TLehman at lor.net
Wed Nov 22 18:13:32 PST 2000


I don't know where you are writing from, but, you will be shocked if you just scratch the surface of the abated property tax issue in the state in which you live!

One new wrinkle in the property tax abatement game is the electric utility deregulation angle now going on in all but a few states. Check it out. Ten million here in county X abated tax revenue, twenty million there in county Y abated tax revenue, maybe one, two, three hundred million in abated tax revenue in a major metro area---pretty soon your talking serious money. On just on one part of the overall scam.

Btw, my political pal "Seatbeltski" is really kissing up to Bob Taft on this issue---"Seatbeltski" has a chance to double or triple his income if he says enough nice things about electric utility deregulation. Seriously.

Tom Lehman

Gregory Geboski wrote:


> << If corporations in their various forms paid their fair share of property
> taxes, there would be very few school funding problems anywhere in the
> USA. >>
>
> No, I think Leo Casey is right on this one. The problem with property taxes
> (which are certainly more progressive than sales taxes) is their unequal
> distribution effects. There are all kinds of social problems that could be
> alleviated if corporations paid more taxes--say, at the Eisenhower-era
> level--and, of course, if they had less power generally. But corporate
> property tax abatements, while certainly loathsome, can hardly account for
> the total underfunding of schools.
>
> Most communities don't have large corporate sites that can provide a steady
> stream of corporate property taxes. In fact, the consolidation of capital
> into fewer and fewer larger corporations means that this form of revenue can
> only be expected to decrease. (The loss of small-to-medium-size industry,
> while invoking "interesting trends" on a national-world level, can have
> devastating effects on a local job market and tax base. We know this,
> right?)
>
> In a related matter, I don't know who out there has gone to any local
> housing planning meetings lately, but the thing now is to treat children as
> bothersome or vile little tax-stealers who must be kept out of a community
> so that the municipality won't be forced to provide schools for them. I'm
> hearing this from developers and government officials in the largely
> residential urban working-class city where I live, so my guess is it's
> probably even more prominient in the 'burbs.
>
> ----Original Message Follows----
> From: Tom Lehman <TLehman at lor.net>
> Reply-To: lbo-talk at lists.panix.com
> To: lbo-talk at lists.panix.com
> Subject: Re: Property Taxes and Public Education Financing
> Date: Tue, 21 Nov 2000 22:17:26 -0500
>
> The big problem here is corporate tax abatement. Neither of the major
> parties are willing to challenge the corporations on this issue.
> Because the corporations will either threaten to leave a jurisdiction if
> they don't get it or not locate in a jurisdiction unless they do get it.
>
> I'd be willing to bet Leo, that you couldn't even find out how much
> property tax has been abated in the school districts your local
> represents! ...
> _____________________________________________________________________________________
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