Dear Reader,

I always say your house is not an asset. It’s a liability.

Why? Because it takes money out of your pocket every single month.

  • Local governments are addicted to spending. When property values go up, they don't lower the tax rate to keep your bill the same.

  • Moving to a "pro-growth" red state won't save you if the local politicians are out of control. The success of these states is driving up property values

  • The only real solution is a "levy limit." This caps the total amount of money a local government can collect.

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And the biggest, most relentless expense of all? Property taxes.

You think you own your home. You don't. You are just renting it from the local government.

Stop paying your property taxes, and see how fast they take "your" house away.

Right now, that rent is going up. Fast.

The Windfall Scam

Here is how the scam works.

You live in a good state. A state with pro-growth policies. People are moving there. Demand goes up.

Your property value goes up.

On paper, you feel richer. But you aren't. Because you haven't sold the house. It’s phantom wealth.

But the local government doesn't care. They see your rising property value as a giant ATM.

When property values spike, honest politicians would lower the tax rate.

They would collect the same amount of money they needed to run the town, and let you keep the rest.

But politicians aren't honest. They are addicted to spending.

So, they keep the tax rate exactly the same. Or they only lower it a tiny bit.

The result? A massive, unearned windfall for the government. And a massive, unexpected bill for you.

It is a silent wealth confiscation scheme.

The Red State Trap

This isn't just happening in high-tax blue states. It’s happening in the places people are fleeing to.

Tennessee. Georgia. North Carolina. Texas.

These states have done a great job creating attractive tax and regulatory climates. They are magnets for new residents.

But that success is creating a crisis. The population growth drives up property values.

And local mayors and city councils are using those rising values to gorge themselves on your money.

You moved to escape high taxes. But the local politicians are bringing the high taxes right to your front door.

The Only Real Solution

People are getting angry. They are demanding relief.

But you have to be careful. Politicians love fake solutions.

They will offer to lower your property taxes, but only if they can raise your sales taxes. That’s not tax relief. That’s a tax shift.

They are just moving the shell game to a different table. Sales taxes are sneaky. You don't notice them as much. That’s why politicians love them.

There is only one real solution. It’s called a "levy limit."

A levy limit is simple. It puts a hard cap on the total amount of property tax revenue a local government can collect.

It usually ties the growth to inflation and population growth.

If property values skyrocket by 20%, the government can't just collect 20% more money. They are capped.

They are forced to lower the tax rate.

Forcing the Diet

Levy limits are being debated right now in Tennessee, Georgia, and North Carolina. In Texas,

Governor Greg Abbott is pushing for a strict cap on local government spending growth, requiring a two-thirds supermajority vote for any tax hikes.

The local politicians hate it. They scream that they won't be able to provide "basic services."

It’s a lie.

They have plenty of money for basic services. What they don't have is unlimited money for their pet projects, their bloated bureaucracies, and their endless spending addictions.

A levy limit forces them to go on a diet. It forces them to prioritize. It forces them to act like a real business.

You are not elected to fund the local government's wildest dreams. The government is elected to serve you.

It’s time to flip the script. It’s time to cap the levy. It’s time to stop the silent robbery and protect your wealth.

Robert Kiyosaki

Editor, Money Power and Profit

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