The Fair Tax Act has stirred debate around the Kenai Peninsula, and I would like to clarify a misconception; the money saved under this act doesn’t vanish — it stays within our community, circulating locally and contributing to the economy through every taxable transaction. Compare that to the recent expenditure by our city council: $650,000 of taxpayer money went to Agnew::Beck, an Anchorage-based firm, to “update” our comprehensive plan. Not only did those funds leave our community, but they now benefit Anchorage instead of our local economy. Mayor Ken Castner attempted to trim $400,000 from that expense, but the council overrode his decision.
An assemblyperson offered an intriguing historical perspective in defense of the current property tax system, noting that “Property taxes have been collected since 3,000 BC in Egypt.” Yet, this comparison raises troubling questions. Ancient Egypt also embraced practices such as slavery, forced child labor, and the systemic denial of basic human rights, especially for women. Do we really want to model any modern system on such an archaic framework?
Taxation on unrealized gains — assessing taxes on income or value you could have earned but didn’t — is equally troubling. Imagine paying income tax on hypothetical earnings or estimated returns on a stock portfolio. Such a system would spark riots in the streets. Yet, under our current property tax system, fluctuations in the real estate market determine what we pay, even if those values are temporary or unrealized.
The Fair Tax Act doesn’t eliminate property taxes; it simply establishes a fair baseline, removing market volatility from the equation. This stability allows homeowners to plan without fearing arbitrary increases based on the whims of the housing market.
If we’re ever to achieve true ownership of our homes, we must go further. Senior citizens, in particular, should no longer live under the threat of losing their homes due to unpaid taxes; or be compelled to sell their home due to a rising tax burden. After a lifetime of contributing to society, they deserve the sanctuary and security of their own homes, free from the looming specter of government seizure.
Communities thrive when individuals come together. As a collective, we circle our wagons, pooling resources for the common good. However, fairness must remain at the core of any system. We should pay our share — no more, no less.
Consider Parkinson’s Law, which states that tasks expand to fill the time allotted for their completion. Similarly, the cost of government will inevitably grow to match the amount of taxes collected to fund it. Without accountability and limits, government spending will always find a way to expand.
It’s time to take action. Contact your assembly member and share this perspective. Change doesn’t happen without grassroots involvement. Together, we can ensure a fairer, more equitable tax system — one that works for everyone. If change is to be, it’s up to you and me.
Chris Story is the owner and broker of Story Real Estate and the host of On Top of the World radio and podcast. He is also the author of “The Backyard Millionaire: How to Create Wealth Where You Are with What You’ve Got.”