Are Property Taxes Important?

In this episode of "More Knowledge, More Wealth," Gabriel Shahin dives into the enticing, yet complex, proposal to eliminate property taxes nationwide and questions its true realism. While it may sound like an immediate win for homeowners, particularly wealthy property owners, Gabriel explains that property taxes are a crucial source of revenue for states, funding essential services such as schools, police, firefighters, and vital infrastructure . He explores the inevitable consequences if this revenue stream were removed, detailing how governments would be compelled to replace it through drastically higher sales taxes (potentially 20–30 percent), increased state income taxes, or new levies on land, luxury goods, digital assets, energy, and even user fees for public services .

Citing examples from states like California, which collects nearly $100 billion annually in property taxes, and states without income tax like Texas and Florida, which rely heavily on property and sales taxes, Gabriel reveals how such a change could lead to dramatic hikes in income taxes and skyrocketing costs for university tuition or gas . Ultimately, he argues that while a select few, especially wealthy real estate owners, might experience immediate relief, the financial burden would unequivocally shift to consumers, renters, and middle-class families. 

Key takeaway:

• No True Winners

• Apparent Immediate Relief

• Heavier, More Widespread Financial Strain: 

• Long-Term Ripple Effects

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