Posted Jan 14, 2013 by Martin Armstrong
The great disconnection between reality and the dream world in which government lives in has made the front page of the Philadelphia Inquirer for Monday, January 14th, 2013. The greatest problem with real estate is the fact it is grounded and is not movable. You have to be careful about buying real estate where property taxes are the main source of revenue for local politicians. The latest loophole for politicians is NOT increasing the tax rate, just increasing their “valuation” of your property. Cherry Hill, New Jersey revalued homes as illustrated in the Inquirer article from $93,300 to $170,400. Other homes jumped from $140,000 to $230,000. The politicians are quoted as saying they are not raising taxes, but said they only “intended to redistribute – not raise – taxes.” So in plain language, they are raising taxes on those they think can afford to pay them. Of course, what happens to the individual is irrelevant. It is not intended to “raise” your taxes, but keep the “revenue” for the city the same by making those who CAN pay cough it up for those who are not really “unemployment” since they are not “actively looking for a job” just involuntarily carted off to early retirement even if it is 30 years ahead of time.