us-constitution constitutional-rights
In the US, isn&#39;t property tax for our house unconstitutional?
<p>We are usually taxed at 1.2%, and that means in 80 years, it is 96% of the house and it is devoured alive.</p>
<p>The Constitution said people have the Rights to Properties.  It does not says, &quot;People have the Rights to Properties ONLY WHEN THEY PAY UP.&quot;</p>
<p>For example, if Peter has the rights to property, and he doesn't have money, and now his house is taken away, or that his food money is taken away, now he doesn't have the rights to the property. (or he will have the &quot;rights&quot; to the property and without food he'd be dead.)  The Constitution never said you don't have the rights to the property when you CANNOT PAY UP.</p>

<blockquote>
<p>The Constitution said people have the Rights to Properties.</p>
</blockquote>
<p>No it doesn't. There is no such provision. The closest I am aware of is the so-called &quot;takings clause&quot; in the Fifth Amendment, which reads:</p>
<blockquote>
<p>Nor shall private property be taken for public use without just compensation.</p>
</blockquote>
<p>There has been a good deal of litigation over just when when a &quot;taking&quot; occurs under this provision. The classic and most obvious case is the use of eminent domain to aquire actual title to the property by a government (Federal, State, or local). This is always a takign, and compensation nis required. The more questionable cases have occurred when some law or regulation leaves the owner with title, but significantly restricts the uses to which the property may be put, particularly when the existing use becomes unlawful. Courts have ruled in different ways in such cases, but I think the current standard is that when a regulation removes all, or almost all, economic value from the property there has been a &quot;regulatory taking&quot; and compensation must be paid.</p>
<p>But as far as I know, a tax on the property has never been considered to be a taking inn this sense.</p>

<h2>Maybe, that’s why there isn’t one</h2>
<p>There are plenty of <em>state</em> property taxes administered by local government but the USA doesn’t have one.</p>

<p><a href="https://www.americanbar.org/groups/taxation/publications/abataxtimes_home/19aug/19aug-pp-johnson-a-wealth-tax-is-constitutional/" rel="nofollow noreferrer">This article</a> gives a good overview of constitutional tax power, even though it has a pro-tax bias. A distinction is made between direct and indirect taxes. The Constitution allows &quot;direct taxes&quot;, provided that they are given to the states in proportion to population, ergo Wyoming and Alaska would receive very little of the money, and California and Texas would get most of the money. This would be a politically unpopular outcome plus since you give the money to the states, so why not leave it to the states to do that which is unpopular (which is what they do now).</p>
<p>A special constitutional amendment, <a href="https://constitution.congress.gov/constitution/amendment-16/" rel="nofollow noreferrer">the 16th</a>, was passed which enabled a non-apportioned direct federal tax but only on income. Then the question arises, what happens if you don't pay your federal income taxes? As you know, one of the sticks that the government can wield is the power to seize property from people, in payment of lawful debts to the government (known as a &quot;levy&quot;). They can do this under <a href="https://www.law.cornell.edu/uscode/text/26/6331" rel="nofollow noreferrer">26 USC 6331</a> – Congress passed a law that is &quot;necessary and proper&quot; to enforce another law (imposing an income tax, which is constitutionally allowed). Seizure of property <em>is</em> allowed under the constitution under the Dur Process clauses (5th, 14th Amendments), which allows deprivation of property only according to the operation of law (as opposed to personal whim of the marshal). There is a law. There does <em>not</em> happen to be a federal property tax, so the IRS cannot seize your property for non-payment of non-existent federal property takes.</p>
