Quote:
Originally Posted by Rathji
If suddenly income was reduced by a large percentage (10-17%?), I don't think not being able to afford your home any further means that it bought on the "absolute edge of affordability". Keep in mind I am not talking about people being instantly tossed on the street here but putting them into a situation where they are pretty much house poor and might need to sell their homes (at a sizable cost) to maintain their normal buying power - which is what the economy needs, not a drastically decreased buying power.
The property tax claim is just plain ridiculous. When would property taxes ever go up $3000 in a single year (a 10% increase on 30k, because I don't know where the line for 'no tax' is)
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I get that, but you're not going to go from paying 0% taxes to 10-17% instantly. Its all marginal as taxable income increases. Much like small increases in Property Taxes.
The only way a person's tax rate would jump by that much is by a large increase in income. So if you're talking about slow and steady increases then the taxes will do the same.
Purchasing a house on the assumption that you're never going to have to pay income taxes is fairly shortsighted.