Myth of Renters Tax Payments....and rebates

I did a little bit of research today regarding where this state and other came up with the concept that renters that don't actually pay taxes are due rebates for said taxes they didn't pay. Apparently, the research is only political and generally is estimates between 17-19 percent of a renters monthly payment. As a former property owner who apparently was a part of this process I am going to have to call foul.

I don't know who comes up with these numbers but I am sure they are completely delusional. Rental income is almost completely derived based on market demand and competitive pricing. To try to claim that taxes are a part is as much fiction as claiming that the consume product index plays a part. People who rent properties look at other who do the same and set their price accordingly. Even if it doesn't cover the cost, many renters factor in capital appreciation and other quality of life issues that play a part (deductions, investment etc).

The net is that the claim that any renter anywhere is depending on the rentee to pay 20 percent of the their rent bill is a complete fabrication. But of course, this is completely un-pc in this state so we don't want to disabuse our poor rental clients of the belief that they actually pay property taxes.

Here is the rub. If you make 20k per year, you don't pay property taxes unless you own the place you live. So any rebate you get is not a rebate. It is state assistance. If only our politicians were not in the vig business, they would be honest and let the taxpayer know that these rebates are actually welfare with the express purpose of buying votes of irresponsible politicians. Pure and simlpe. If you knew that, would you support it?

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