The idea that higher taxation adds higher costs to any transaction thus making less transactions possible is lost on our legislatures. That seems to be the case in Connecticut where the legislature is planning on making a temporary real estate transaction tax permanent.
All the legislators see is 43 million dollars of tax revenue on the table. They do not see the added cost that buyers and sellers must absorb. Neither do they see the tax that is added to the end of a transaction when money is tight that ends up coming out of commissions that could be earned. Nor do they see deals that fall apart because costs are just too high with the tax.
Nope, all these bloodsuckers in the legislature see is todays money for themselves.
Killing the Golden Goose seems to be governments favorite game these days…
Wednesday marks “Realtors’ Day” at the Capitol. Also, the General Assembly’s tax-writing committee was scheduled to vote on the legislation that makes the tax rate permanent, but postponed the meeting until Thursday.
The Realtors say the higher tax, which is supposed to expire on June 30, is an added burden on homeowners trying to sell their properties in a fragile housing market.
But the Connecticut Conference of Municipalities says the tax could bring in more than $43 million for cities and towns, who would be forced to raise local property taxes and cut municipal services if the bill is defeated. via the Hartford Courant
No related posts.
{ 2 comments… read them below or add one }
Buyers already have to bring so much at the table at closing. Adding one more thing is a terrible idea. They’re obviously just trying to produce more revenue with little regard for the fact that the producing part of the population can no longer keep pace with the government’s gluttony.
This is just more red tape to hold up the sale of these homes …..