Why do we have to pay annual taxes on assets we "own"?

Question

How is it possible that the govt. is allowed to tax annually on assets individuals "own"? I don't consider that real ownership.

Answer 1

It depends which tax you are asking about.  Real estate property taxes are necessary for local gov't, police, roads, schools, etc. that residents use.  Vehicles use roads.

But something I have trouble grasping is why people put up with states charging annual personal property tax for stuff you simply own, that does not require any gov't resources.  If I lived in one of those states, I would be upset too (or maybe less polite wording).

Answer 2

They will take you out of your car at a stop sign too.  They have done it.....!

Answer 3

The type of property tax you are referring to is not income tax.  However, this type of tax predates the income tax.

If you want to, you can look at the tax assessments in the 19th century.  They are public record.  Tax assessors went around and inspected the assets of the public.  Taxes were assessed on livestock, carriages, tools, anything on which a value could be placed.  It was gruesome, in my opinion, to assess a cash payment from folks who may not have any cash but owned a few things.

Today, the type of tax you refer to is mainly on real estate.  This tax is imposed by states and local governments, to fund the operations of government and to support public schools.    You can avoid these taxes by not owning real estate.  Otherwise, you pay.

Answer 4

Because that's the law.  Pretty simple.  If you don't like it, bring it up with your local elected representatives.  Keep in mind that if one tax is dropped, another will have to take it's place.  Pick your poison, the government needs funds to operate.

Answer 5

Please watch this video the government has been lieing about the taxes we are suppose to pay.

Educate your self now why you have these questions.

I''m not some crazy person i', a 29 year old single mom of 4 and i own my own business......

http://video.google.com/videoplay?docid=...

Answer 6

They tax you on the earnings from that asset. Not the asset.

You pay taxes on all income earned from all sources.