Renters, Home Owners, and Hidden Taxes: A Transparent Tax System Would Lower the Cost of Owning or Renting a Home

In the same way that a transparent tax system makes it possible for the prices of the stuff we buy to be lower, a properly designed transparent tax system would lower the cost of owning a home.


One of the ways this would happen is because there would be no more taxes in the current P.I.T.I payment calculation.  This would mean the required payment on the same property would be lower by the absence of a currently required property tax payment.

Because there would be no property taxes forcing landlords to raise their monthly rents, they could reduce their monthly rent by the amount of the property taxes that are paid by and hidden from their renters.

Home buying would be more affordable.

Another option to consider for those who can qualify to buy a home is this.  Under a transparent tax system, there would be no property tax payment coming out of the mortgage payment portion of their monthly income (P.I.T.I.).

Therefore, the amount that current formulas used to determine how much of a monthly house payment you could afford would be higher.  Thus you could potentially afford to buy a home with a higher value.

Perhaps one that is just a little nicer, a little more to your liking.  Or your payment on the same house would simply be lower.

Thank you for taking time to read and ponder my opinion on this topic.
An Opinion Article by Dave Kemper
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It has been said that: "One definition of insanity is to do the same thing, the same way, over and over and over again, each time expecting to achieve a different result."
Therefore, we must either CHANGE the way we live, or we bind our future to our past as if with CHAINS.
"I do not consider myself to be better than anyone else.  But I do believe in exercising my right to not stay stupid."

David W. Kemper, Author
© Copyright 2014 by David William Kemper.  All right reserved
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