Tuesday, October 23, 2007

Daniels Won't Back Repeal Of Property Tax

Gov. Mitch Daniels' long-awaited property tax plan will be announced this evening live at 6:00 p.m. Those hoping for his support for a repeal of the property tax will be disappointed. The Star's Brendan O'Shaughnessy writes, "Although details were not released, one thing appears certain: The governor will not suggest the elimination of property taxes, which raise about $6.billion annually to fund such things as schools and police and fire departments." A constitutional amendment in some form, however, is expected to be proposed by Daniels to control local spending and property taxes.

If you stop to think about it, when has government ever repealed a tax once it is enacted? So many people make their living off the existence of there being a property tax. I'm convinced that's why efforts to date to repeal the federal inheritance tax have failed. There are so many people in this country who make their living off the fact that people with money and property have to plan for their death because of the insidious tax, and they all lobby Congress on a day-to-day basis.

There's going to be a lot riding on Daniels' property tax plan. If he fails to get meaningful changes through prior to next year's election, he might not win another term. Will House Speaker Pat Bauer risk derailing true property tax reform this year to prevent Daniels from having that re-election card to play? Or will he prove to us his Democratic majority can deliver true property tax reform in hopes of boosting his own party's majority in the House? It should prove to be an interesting legislative session.

4 comments:

Anonymous said...

"A constitutional amendment in some form"

This sounds scary.

Anonymous said...

You completely forgot: Inventory
taxes were repealed, which explains
some of the current situation.

Advance Indiana said...

Not really, the inventory tax was an outgrowth of the property tax.

Lord Peter said...

All taxes are an outgrowth of the property tax.