Paying land taxes with devalued currency, how?
My concern is how will land taxes be paid if the paper currency is devalued. Will land be confiscated?
That’s why you need precious metals (PMs).
That could become tricky too, I’m sure. If the market is down, and nothing is functioning, then how do you determine the value of PMs? My land, which is ‘unimproved pasture’ or some such on the parish tax rolls, is about $60 of taxes a year. Now, with the modest amount of silver I have, I could possibly pay taxes on it til the day I die or the next 60 years or so, whichever comes first. But, if siver goes up to $200/oz. (wild, uneducated guess) then I’d have to divvy up a coin to pay. Not to speak of how to pay if I had gold, which I don’t. So the issue would then be what form of payment will the government demand? Will PMs be easily exchangeable for that instrument? No clue. But the only reason I have silver at all is to pay property taxes so I don’t lose my source of food, shelter and water. Beside that, ya can’t eat or drink PMs. Just depends on how bad you feel things may get. As in Haiti right now, God Forbid, toothpaste may be worth more than PMs.
Great question. I wish I had the knowledge to give you a direct answer but I can only offer this. I would look at past precedents of collapsed economies and what happened to their taxes and land value. Look at Argentina, Yugoslavia (both recent) and our own 1930’s collapse. You will most likely see some similarities.
I would be very interested to see what you find.
Property taxes can’t go up unless the people elected by us raise the tax rate. That is why it is critical to pay attention to who gets elected at the local level. Property taxes are levied by the county so it is your county supervisors that decide if and how much taxes increase.
If there is significant inflation and the people refuse to allow taxes to be raised then the beast that feeds off the taxes will die.
One of the few good things that have happened in Calif. in the last few years/decades is Prop. 13. This prevents a tax increase by legislators without a 2/3 majority. Even then the legislators are very creative in finding ways to raise revenue.
The same way we have been paying it since the dollar has been on a continuous devaluation since 1913. It’s taking more units of currency to pay for everything from taxes to goods and services. The Bureau Of Labor has an inflation calculator in their website, just enter the timeframe and it will tell you much prices have risen (or how far the currency has been debased, if you prefer) in the period entered.
This is not that different than it is now. My FIL retired in 1987 with a fully funded pension and a good savings account. At 83 he is back working full time because his money does not go far enough to pay his ever increasing property taxes.