Hampton Beach, NH residents threw tea leaves into the sea yesterday to protest a stunning property tax increase that is a direct result of the housing bubble. The village of Hampton Beach is basing the new valuations on the prices for which homes sold in the last two years – the peak of the Fed-created bubble.
“We are being taxed out of our homes”
“We are being taxed out of our homes,” Eugene Rogers said. “It’s too much to handle. I don’t know if they just want to put up a chain-link fence around our property and say they own it now or what.”
Unlimited License to Tax
Mr Rogers sums up property taxes well. Governments often have unlimited license to tax the limited resources of citizens. The logical conclusion is that governments can take ownership of citizens’ property whenever they like, simply by increasing taxes to a level just beyond the ability of citizens to pay.
Fed Exaggerates Balance of Power
Adding the Federal Reserve to the mix only exaggerates the current balance of power. When the Fed creates money from thin air, governments and banks (and borrowers) get first use. They don’t suffer the effects of inflation as much as do consumers (citizens). Thus, borrowers and governments are empowered by our monetary system while people who actually have assets – such as these homeowners – see the value of their assets constantly eroded by inflation.