explain the advantages & disadvantages of having a state income tax or a hefty property tax? what are the impacts durning the recession / surplus
3 Answers | Add Yours
The advantage of having a state income tax and a hefty property tax, at least in the eyes of those who support such taxes, is that they provide income to the state government. The disadvantage, in the eyes of those who oppose heavy state and property taxes, is that they take money from the private sector, where (they would argue) it is likely to be spent more efficiently.
Double post... sorry
Income taxes go up and down with the business cycle. That would mean that a state's tax revenues would fluctuate as well if it relies on an income tax. Property taxes are more stable, though they can also be less fair to people who might have to pay on large amounts of property even if they are cash poor during, for example, a recession.
We’ve answered 318,935 questions. We can answer yours, too.Ask a question