What is 'fair'?

This is one of my favorite stories. I was going to quote it here, in full because I don't know how much longer it will be available on its host site (https://www.theglobeandmail.com/globe-investor/personal-finance/taxes/how-splitting-the-dinner-bill-relates-to-tax-cuts/article24441644/) I read this long ago; I think the post I cite (by a Canadian author) is a later copy of the one I originally read (yes, it was *that* long ago). I just found another version, still getting comments (in 2020):  http://www.jonasmaxwell.com/pages/index.cfm?pg=234&cat=5  

So, the first four lunch mates are complaining because they got none of the discount (but 'forgot' they were paying none of the original cost) and the next few didn't get any but were no longer paying even the reduced amount they were paying, the next couple few didn't get as much in absolute rebate as the richest one. The same applies to say, primary home property taxes. We all pay the same rate. We'll call it 1./$100 assessed value, because it makes the math easier. My house assessed at $100,000 so my [simple] tax due would be $1,000. The tony neighborhood house assessed at $1,000,000 so that [simple] tax bill would be $10,000. Then the state raises the rate to 1.25/$100 -- now my tax bill would be $1,250 and my tony neighbor's would be $12,500 - I pay more but my neighbor pays 80% more. After a barrage of phone calls to representatives and letters to the editor and town hall meetings, the state lowers the rate to 1.10/100, giving a credit to every taxpayer household. My credit is $150 while my neighbor's credit is $1,500, 10 times mine! But he didn't pay *that* much more on his *million dollar house*! That's not fair! Then the renters (the 1st few people in the lunch story) realize they've received no credit at all, and they start whining. That's not fair!! We didn't get anything! The state must take action!

A renters' income tax credit is instituted (deductible amount that represents each renters' proportionate share of the property taxes paid by the property owner). A seniors' property tax credit is instituted. A homestead property tax allowance is implemented. A homeowners' (as opposed to investors or corporate ownership) property tax discount is implemented. The free-lunchers have their rents raised because the landlord (a/k/a property owner) still has the same fixed expenses... insurance, maintenance and repairs, improvements. The subsidized lunchers have more children and complain about overcrowded schools and poor public transportation. Real property tax rate gradually creeps up. Assessments gradually increase. The moderate to middle level lunchers put their second or third car in the garage because there's not enough room on the street. The more well-to-do must rent or buy marina space because the garage is full of cars, or the yacht won't fit in the garage anyway. The million dollar neighbor moves to The Outer Banks or Hyannis Port, or maybe Paris or the French Riviera. Or maybe they devote their lives to finding a cure for disease or trying to eliminate global poverty. 

State income drops and public services are cut. Taxes are raised to cover at least the minimum services (fire, police, trash, schools). No one wants to pay their share, but all want services provided. That is simply not possible. It is not 'fair' to think it is possible, You're a teacher, or coder, or police officer, or university dean -- will you work for free? At what point are you willing to recognize that the good of the many outweighs the good of the few?

Wear your mask if you go out. Support education reform. Support law enforcement reform. We are all responsible to each other.


Note - This post was partially inspired by receiving our property tax bill yesterday, due the end of this month to get small credit for paying early.