Posted originally on Feb 20, 2025 by Martin Armstrong
Florida Governor Ron DeSantis has called property taxes “the more oppressive and ineffective form of taxation” and is looking at ways of reducing or implementing this tax. In America, one never truly owns their home. Even if you’ve paid off your mortgage, you’re still paying rent to the government for the privilege of staying in your house.
This system is a remnant of feudalism, where land ownership was conditional upon paying dues to the ruling class. In many states, we have seen local governments raising property taxes to compensate for their fiscal mismanagement, further burdening homeowners and preventing renters from accessing the market. The pension crisis at the municipal and state levels has only exacerbated this trend. They continue to increase taxation on real estate because it is immovable, meaning they can always come after you to collect.
Historically, property taxes were never meant to be this high. They were originally implemented to fund local services such as schools and infrastructure, but over time, they have become a tool for governments to extract revenue at will. The real danger is that, in economic downturns, people lose their jobs, and income tax revenue declines, but property taxes remain. This forces many homeowners—particularly retirees on fixed incomes—to sell their homes because they can no longer afford the tax burden. This is why we are seeing a growing number of people fleeing high-tax states like California, New York, and Illinois in favor of states with lower property tax burdens. Capital flows dictate economic strength, and those states losing wealth due to excessive taxation will continue their decline.
Property taxes are unsustainable in their current form, especially as governments become more desperate for revenue. The only real solution is to restructure the system entirely, eliminating the government’s ability to tax an individual’s primary residence. This would force local governments to live within their means instead of using homeowners as their personal ATM.
DeSantis would need to file an amendment that must receive 60% approval from voters, who would likely be in favor of such a measure. No US state has completely abolished property taxes but we have seen several take measures to reduce the tax burden. Idaho, for example, used its surplus following the pandemic to provide a property tax rebate and divert funds to schools districts. Colorado increased exemptions and caps property taxes but sources $200 million from the general fund to pay local governments for lost revenue. Governor Jill Pillen of Nebraska sought to reduce this tax burden by 40% but failed to garner enough votes for the bill to pass.
Plenty of nations such as China, Malta, Monaco, Saudi Arabia, Lichtenstein, the Cayman Islands, Fiji, the UAE, Croatia, and others do not charge property taxes, although revenue is collected elsewhere. The American dream once included a family, home, and a white picket fence. In addition to having a tangible asset, home ownership should provide the security of a fixed monthly mortgage payment unlike rentals with renewable contracts. Taxes have simply risen to unsustainable levels whereby people can no longer maintain payments and this is greatly contributing to the cost of living crisis.
