Paying land taxes with devalued currency, how?

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Lion's picture
Lion
Status: Member (Offline)
Joined: May 21 2009
Posts: 1
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?

Swampmama3's picture
Swampmama3
Status: Bronze Member (Offline)
Joined: Oct 28 2009
Posts: 72
Re: Paying land taxes with devalued currency, how?

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.

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Re: Paying land taxes with devalued currency, how?

Hi Lion!

Welcome!

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.

 

Ken C's picture
Ken C
Status: Platinum Member (Offline)
Joined: Feb 13 2009
Posts: 753
Re: Paying land taxes with devalued currency, how?

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.

 

Ken

 

Carl Veritas's picture
Carl Veritas
Status: Gold Member (Offline)
Joined: Oct 23 2008
Posts: 294
Re: Paying land taxes with devalued currency, how?

 

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.

                                                                      http://www.bls.gov/data/inflation_calculator.htm

On Our Own's picture
On Our Own
Status: Bronze Member (Offline)
Joined: Dec 28 2009
Posts: 72
Re: Paying land taxes with devalued currency, how?

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.

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