Specifically, are income/sales taxes more responsive to economic ups/down than property taxes? I.E., when the economy experiences a downturn, is it legitimate to say that sales/income tax revenue collected by a government would be impacted more quickly than property taxes?
Any sources would also be much appreciated!
It depends on the Legislation (Prop 13 in CA is a great example), and Income Disparity is the only relevant metric, in determining if any economic system is working well for all, and is a reliable source of public sector revenue. The Greatest Generation provides a wonderful case study in targeting reliable funding sources, funding infrastructure and essential public services, supporting "free competitive markets," and building the largest middle class in history. Taxes and User Fees based on financial benefit and wealth, combined with laws promoting competition, are our only hope for saving Capitalism and rebuilding our Middle Class.
It's possible I wasn't clear when articulating the question originally. Sorry it's not universally stimulating and important to everyone. I'll try to be more concise and rephrase:
I'm looking at state and local level tax revenue over the course of a decade, through the lens of an economic recession and recovery period.
My question is, when a recession hits (e.g. dot-com bubble, great recession), will revenue collected by governments through property taxes be impacted less quickly than income/sales taxes? Will reductions in revenue collected through income/sales taxes be evident more quickly than in revenue collected through property taxes?
Thanks,
Having endured innumerable late-night hearings, in remote corners of Humboldt County, CA, for decades, I somehow survived typically heated discussions on proposed taxes/fees with this standard response : "Those who benefit the most in using infrastructure and essential services, should pay the most." User Fees based on financial benefit and wealth is the best focus for minimizing revenue fluctuations due to inevitable economic cycles...
https://www.treasury.gov/resource-center/faqs/Taxes/Pages/economics.aspx
http://taxinsights.ey.com/archive/archive-articles/five-trends-reshape-indirect-tax-landscape.aspx
https://www.debt.org/tax/type/
http://www.taxpolicycenter.org/briefing-book/how-do-taxes-affect-economy-long-run
http://www.taxpolicycenter.org/briefing-book/how-do-taxes-affect-economy-short-run
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