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Our Tax Focus Is Off

8/10/2021

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In a recent discussion with a group of principled, politically astute folks, the subject of property taxes came up.  More specifically, protesting them.  One of them felt it was his duty to do so.  Needless to say, there was some animosity in the room.

The topic is oftentimes hotter than the Texas sun this time of year.

A few days later, Councilmen John Courage (D9) and Clayton Perry (D10) proposed raising the homestead exemption to 5%, from the current .01%.  It was voted down.    

Our energies are being misallocated here.  These anecdotes point to why the whole property tax system should be uprooted and tossed aside. 

The first problem is with the way it is constructed.

While there are various exemptions homeowners can utilize to lower their respective bills, the one the councilmen were trying to increase is the only one available to all.  This fundamental unfairness is not without consequences.

New district 1 councilman Mario Bravo implied that the city can only afford to “protect senior citizens” with exemptions.  That “protection” though, sometimes costs non-senior households four times as much in taxes.

If some of the un-“protected” bolt city limits, those who remain face the possibility of a rate hike to make up for the subsequent shortfall.  Or, corporate landlords scoop up the abandoned houses, consolidating home ownership in fewer, bigger hands that can easily afford a higher bill.

No one would quarrel with helping seniors, or veterans for that matter, the other main beneficiary of current exemptions.  Personal contributions to programs run by groups like the United Way, or various religious organizations, or even senior discounts show as much.

But picking winners and losers via property taxes breeds resentment, and probably explains why some council members promote workshops to help citizens dispute their bill. 

However, this contributes to the next point of contention.    

We certainly don’t begrudge citizens’ efforts to minimize how much government plunders from them.  This is especially the case when the tax assessor’s appraised value is out of whack with private market estimates.

To their credit, these protesters are arguably more in-tune with the odiousness of this racket than the vast majority who have their mortgage lender escrow it for them.

But we wonder if citizens expend the same time and energy objecting to the tax itself.  If not, protesting it arguably justifies its existence, and the millions of dollars the county spends to collect it.  

In practice, the property tax is as detrimental as the income tax.  Both disincentivize and erode the ability to save and invest, the sole acts which foster the prosperity we all enjoy.

Also, whereas you could lose your freedom for not paying tax on your income, you could lose your home for not ponying up on your property.  And the cut for public schools, the only one bigger than that of the city, arguably skews K-12 education. 

Likewise, given how easy it is to punch up our respective bills, it compromises our privacy.

It doesn’t have to be this way.  A consumption tax is less distorting, less discriminating, and less intrusive.

The first and last gripe you’ll hear about it is that it’s “regressive,” meaning the lower someone’s income, the higher the effective tax they pay when purchasing non-necessities. 

But that essentially implies that consumers are entitled to that third T.V., or that drum set, or that boat, etc.

The second counter-argument is that consumption powers the economy, and therefore we can’t discourage it.  That is the height of misinformation perpetuated by the media.  Think about it.

When you consume something, you literally chip away, or outright destroy the value that it embodied.  Consumption ends production.  Moreover, you don’t have the former without the latter.  If we don’t produce, we don’t consume.

An extra $1.50 paid in tax on that sixth pair of $150 shoes could almost make up what the city would lose if it stopped discouraging San Antonians from building wealth.  But that hike probably wouldn’t even be necessary.

People spend when they’re happy.  It’s one byproduct of landing a new job, or getting promoted.  Same for the business owner when, after a lot of work and investment, their venture succeeds enough to hire that new employee.  It’s a virtuous cycle.

They’ve even invented a phrase for shopping sprees when people are sad; “retail therapy.” 

We’re Americans.  We like to buy stuff, so much so that we rent storage space for our extra stuff.  That’s not going to change, and can only be enhanced when people don’t feel like they’re being looted involuntarily.

Combine that with clearing out some of the regulatory thicket that slows down growth, and rightsizing the expenditure side of the city ledger, and tax rates wouldn’t have to go up on the toys we want. 

Politicos and entrenched interests will naturally decry this for one reason or another.  That’s to be expected since their livelihood depends in part on a misplaced confidence that they can manage citizens’ resources better than they who earned it.

We must push them to do the right thing first (abolish the property tax), adjust accordingly, and call them out when they spin it as a false choice between that and “hav(ing) sidewalks.”
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Denise Gutierrez-Homer was an interior design and decorative artist for 25 years, is a partner in a family real estate firm, and ran for San Antonio Mayor in Spring 2021.  Christopher E. Baecker works in the energy industry, teaches college economics, and ran for city council in the same.  She is Vice President of InfuseSA, where he is Policy Director. 
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Metal Longevity

8/6/2021

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Concerts are back!  It’s the somewhat less exciting news however, that has my attention: so is new music.

My buddies and I are set to see Megadeth/Lamb of God/Hatebreed, and Testament/Exodus/Death Angel, both rescheduled from last year, with bolstered lineups.  The mighty Obituary is also going out sandwiched between longtime Ozzy guitarist Zakk Wylde’s Black Label Society, and veterans Prong. 

One of the last shows I saw before the pandemic was Iron Maiden’s “Legacy of the Beast.”  They’re making a noteworthy splash of their own soon: the release of their 17th studio album “Senjutsu.”

To say bands like these, still blasting away, are an inspiration would be an understatement. 

When we see Maiden out supporting “Senjutsu,” drummer Nicko McBrain will be blowing out 70 birthday candles.  It’s mind-boggling!  A new album is just as impressive to me.

When some bands reach this point in their career, they don’t “see a reason” to record new music.  Their catalogues are plenty massive to support a week’s worth of unique setlists. 

And that’s cool.  Fans will still pay top dollar to see their favorite tunes played by (mostly) those who recorded them.

Moreover, it’s not baseless speculation that “Senjutsu” is no more likely to become part of the Maiden lore than their 2015 effort, “Book of Souls.” 

From their self-titled debut over 40 years ago, to their masterpiece “Powerslave” a few years later, to the underrated “Seventh Son of a Seventh Son,” it was then, during the 1980s, when fans swooned and became hooked. 

That bond would survive the departures of vocalist Bruce Dickinson and lead guitarist Adrian Smith, and the rough 1990s that followed.

Since both were welcomed back at the turn of the century, Maiden has put out six new albums.  Almost 400 years of life amongst the six members hasn’t slowed them down.  Nor has cancer on one of the most recognizable set of pipes in all of music.

And when they tour, they don’t do so lightly.

Not only do they spend months admirably promoting their new albums, they take to the road in ‘off’ years to play nothing but classics.  This arguably endears them to their fans.

That’s not to dismiss the real possibility however, that new stuff could click with metalheads.  The most recent offerings from Metallica and Anthrax for example, are sure to be represented in future concerts.

That can’t happen though, without first putting in the effort to write, collaborate, and record.  Oddly enough, I’m reminded of my 75 year-old dad. 

For a decade or so, he and my step-mother have been living an ideal retirement: pulling a 5th-wheel across the country.  They also sell RV supplies and accessories along the way. 

When I asked him about the latter, he told me “I feel like I still have more to give in life.”  It kind of made me proud.

I’ve never been one who’s had his 62nd or 70th birthday circled on the calendar as the day I’m simply going to stop.  Only in the last few years have I found a hobby/side-gig that I would love to do ‘in retirement’ (teaching).

It’s clear that social security and Medicare, at the very least, need reform.  Nevertheless, we don’t have to tap them and tap out of productive activities at a prescribed time.  My dad and my bands inspire me in this regard. 
​
Now if I could just get him to appreciate the beauty of a galloping Steve Harris bass line ...  
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    I have worked in accounting for 25 years.  I have taught economics to local college students since 2014.  I am sending 4 wonderful daughters out into the world.  I stay involved in local politics via InfuseSA, and have run for city council in 2021 and 2023.  To see where my mind is at, check me out at RealClearMarkets, Mises Wire, The American Spectator, the Foundation for Economic Education, and the San Antonio Express-News, among other.

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