Post the filling, the box tribe took a trip to see kidinbox in a town farther North. The day went pleasantly, though much shorter than previously planned. On the return trip I discovered the crew examining the backs of their eyelids. This allowed time to let the imagination roam. We have been interested in some property and a couple ideas came from the idea of looking at this house. For the first, let’s say the purchase price is 120k. With the low interest rate, it is possible to pay about 300 dollars a month interest and 200 dollars a month taxes. Well, add that 300 dollars a month interest which is money the company gets for providing the principle initially, to the purchase price and if the house is paid off in five years, the amount of the purchase is 135K. So the next morning I asked spouseinbox if the house was worth 135K. What are you talking about? was the reply. If we had the 120K handy, then the purchase price would be that amount. The fact that we have less cash handy means the only way to obtain this lot and house is with a loan making the price of the house once purchased – higher. Run out the numbers for a slightly higher interest rate and 30 years, and the house would be roughly 250K to purchase. That means I would be paying the same price as some rich dude for a 250,000 dollar house, and only have a 120K house to show for the efforts. This is one way wealthy individuals maintain their wealth. They don’t give it to finance companies. That’s the price of a house that could be used on something for us instead of going into the coffers of Henry Potter.
Next, there is the concept of taxation. At the present day, it is considered there and always existing, so why fuss? Just pay it and move on. However, taxes were not what they are today even twenty years ago let alone 100 years ago, and there was no income tax at the founding of this nation. People were responsible to care for themselves – what a concept! Well, I chewed on the concept of the property tax and specifically the idea of ownership. If someone can walk on to your property, look in your car, pat down your person, etc and remove anything you have there, did you own it? If the government can remove you from your house and the land on which it sits, did you own it? I am speaking here of the consequences of not paying taxes. The government would seize the property, and sell it on auction to pay the back taxes. That translates, to me, the idea that ownership is not a real property when taxes are involved. The government looks at everything as theirs lent out for our usage. The purchase price is the amount given to purchase protection from the government against any other person trying to claim the property. The property taxes are rent paid to the government to allow continued use. There is no true ownership when taxes can be applied. Politicians feel the same way about your paycheck, though that’s a discussion for another day.