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THURSDAY, NOVEMBER 10, 2005 12:00 AM

S.C. has opportunity to lead nation in overhaul of taxes

By JACK SIMMONS

Ten years ago drastically escalating property taxes motivated me to address the inherent unfairness and dangers in this system of funding government. The Post and Courier was kind enough to publish my thoughts in "Property tax inequities threaten basic American freedoms," May 3, 1995. Finally the debate has come to the forefront, and hopefully, meaningful relief will be forthcoming.

In 1819, John Marshall wrote: "The power to tax is the power to destroy." By allowing the government to tax our property, we have compromised our freedom of ownership. If we refuse to pay our property taxes, the government will essentially "take" our homes via liens.

Cicero recognized this over 2,000 years ago when he wrote that the first duty of government is to ensure that "private citizens suffer no invasion of their property rights by an act of the state."

Once again, South Carolina has the opportunity to lead the nation in a tax revolution. Unlike our armed revolt against unfair taxation in the Revolutionary War, we can peacefully restore fairness with a system of taxation that is simple and rational.

If we are a nation of opportunity, then we should tax income (above a basic level). Ones tax burden rises and falls in relation to productivity.

If we are a nation of consumers, then a sales tax makes sense if we exempt basic foods and medicines. While capturing tax support from visitors to our area, it also taps unreported sources of income, most notably from criminal activities.

If we profit from our system by the accumulation of capital wealth, then we should have no problem with returning a portion of that wealth to the system by paying taxes on capital gains.

Since we only pay taxes on stock gains, we should consider treating property appreciation similarly, paying only when it is sold and the gain actually realized.

Alternatively, a transfer fee (for example, a sales tax on homes) would more fairly provide revenue than the current system.

Citizens and elected officials constantly pay lip service to family values. Yet, by allowing government to tax our homes, we foster a system contrary to family continuity. Families that improve and care for their homes over a generation end up suffering from the increased value, often having to sell to pay taxes, subsequently moving to a smaller abode or less desirable neighborhood.

This shatters residential continuity, disrupting the stability engendered by extended family relationships. Such taxation promotes an ever-increasing transitory society leading to more community anonymity, instability, crime.

Al Parish's recent commentary piece, "Fix, but don't eliminate property tax to maximize fairness," is a well-considered analysis of our problem.

However, I differ with him on the point of allowing any taxation on our homes. The ability to own a home should be such a basic American freedom as to be untouchable by government.

Until we eliminate property tax completely, we can only have the fantasy of home ownership.

If needed, in lieu of the homeowner being forced to pay more, government should be willing to accept less.

The challenge before us is to restore the freedom of home ownership by rising above the politics of envy, eliminating completely and forever this invasion of our privacy, our homes, our freedom.

Dr. Jack Simmons is the chairman of the The Committee to Save our City.


This article was printed via the web on 11/14/2005 10:50:57 AM . This article
appeared in The Post and Courier and updated online at Charleston.net on Thursday, November 10, 2005.