As this will be my last monthly newsletter before the forthcoming festive break, may I take this opportunity to wish you all a relaxing and enjoyable time with family and friends over the holiday period.
I read an interesting paper published recently by the Institute on Taxation and Economic Policy titled “America Used to Have a Wealth Tax: The Forgotten History of the General Property Tax”. Below are selected extracts from the paper.
The authors state: When Americans hear “property tax,” they tend to think taxes on houses and other real estate. And for good reason. While property taxes are often levied on motor vehicles, and occasionally on business net worth, the vast majority of property taxes in the U.S. today apply only to real estate. It was not always so. The historic “general property tax” applied to almost all property, including intangibles like stock, bonds, cash on hand, accounts receivable, and interest in a partnership. Once a mainstay of American public finance, the general property tax helped finance the nation’s early industrial growth.