United States estate tax do? use where?

For the United States most people own their own homes, real estate market bubbles not only housing value decreases, and does not reduce the payment of real estate property tax burden. When the value of housing because of a big increase in shooting housing, credit crunch, factors such as lack of buyers continue to fall, for many homeowners, real estate tax is still a rising trend. Here's the reason is that the United States is not the real estate tax to curb price lever, which is the local Government to solve financial income is insufficient means.

In theory, when housing prices are falling, in accordance with the tax levied in each of the real estate tax reduction will also be followed. However, in reality, the economic downturn is impacting government revenue, Le tighten belt, reduce consumption, accompanied by Government sales tax, and other major revenue substantially reduced. But the Government's expenditure but difficult to cut, once the local government need to pay local taxes, including all the-building schools, libraries, police, fire brigade and ambulance services, the Government will increase the local real estate tax rate, offset the budget deficit on. For example, New York and New Jersey is real estate tax, the highest in the area of real estate tax is high and not only because of the local real estate value of high, but on the real estate industry has taken a high tax policies.

Even in the same State, as the city's tax base and the number of differences, but also makes people pay real estate taxes are quite different. For example, the same is the State of New York's two areas, white prairie city business, local government tax revenue from sales of main and business tax. On people's real estate tax rate is lower. White Plains city of Jane's farm, each year the sale of independent residential average price of $ 993000, homeowners pay per year for real estate tax is $ 16000. Sleep Valley City less commercial, local government revenue relies primarily on real estate tax. Sleep Valley City of Phillips Manor area sales average residential rates of independent USD 847000 than Jane, farm prices to US dollars, however low 146000 Phillips Manor residents each year to pay real estate taxes up to $ 22500 than Jane, farm residents pay real estate tax to 29% higher.

State of the cities due to economic conditions, on real estate tax policies are markedly different. In 2009, New York City real estate tax revenue is 144 billion, accounting for 41% of municipal taxation. Government budget Office assessment 2010 personal income tax revenue will be reduced by 22%, commercial income tax revenue will be reduced by 23%, so the Government can only improve the collection of real estate tax rate, the expected 2010 New York City real estate tax charged will be $ 158 billion, accounting for all the revenue of the municipality of 47%.

Pennsylvania Governor Randall announced earlier this year, due to the State Government in the Casino's earnings more than $ 700 million, to state residents reduce real estate tax burdens, 270 million 2009 Pennsylvania families will become beneficiaries of reducing real estate tax, in the past few years the State as residents reduce real estate tax up to a total of $ 24 million. Conversely, if the Government does not reduce the real estate tax, people will be pulled out from the purse billion for government expenditures.