In good old fashion political jockeying, the House finally agreed to a budget and unknown to many, they also passed a Renters Tax! The idea is for all Americans to participate in our simple tax system and shore up our huge deficit. The new law states that starting October 1, 2011 all renters shall pay a Renters Tax equal to half the value of their rented home as determined by the government every year. Landlords equally pay the other half.
Example: A nice 3 bedroom, 2.5 bath property is assessed at $500,000. A taxation of 1.2% = $6,000 must be paid once a year. Since the renter benefits from living in the home as well as the public parks, roads, libraries, and schools, the renter writes a check for $3,000 to the local state county tax board. Meanwhile, even though the landlord does not enjoy any of the benefits of living in the home, s/he receives rental income, potential long term asset appreciation, and the option to move back in at his or her choosing. As a result, the owner pays for half the annual property tax by sending in a check as well. Perfect equality. Both renter and owner have “skin in the game” and look to better their surrounding community.
THE GOVERNMENT BELIEVES WE SHOULD ALL PITCH IN TOGETHER