The property tax essentially represents a direct debit of ownership and reserves. Unlike current income taxes, it does not affect income, but rather the assets saved: bank balances, securities, real estate and other tangible assets are declared taxable. Her essence is characterized by political ambivalence – it should create social justice, but alsoRedefining the boundaries between wealth and possessions. However, reality often looks different: The narrower the legal definition and the allowances are set, the more the smaller assets are targeted by tax policy. The risk is growing that even small credit balances will be subject to the tax authorities’ access in the future.
Problematic estimates and administrative arbitrariness
In the everyday life of the tax authorities, it is hardly practicable to precisely evaluate each individual asset. The consequence is general valuation rules that reflect neither the real situation nor the economic risks of the affected persons. Especially in the case of missing documents or a lack of participation by the taxpayer, the tax office uses estimates – a practice,which easily leads to burdens that are above the actual assets. Many of those affected then face the problem of contesting the values proposed by the Office in court and of wielding the complex proof of the opposite. Without transparent complaint mechanisms, arbitrariness often remains uncorrected, which undermines social trust and the meaning of fair tax legislation is in questionputs.
Dangers of growing tax burdens on small credit balances
Political reality shows how quickly the logic of design can be expanded in difficult economic times. What is still considered today as a protection rule for small reserves can be changed tomorrow in favor of higher tax revenues. There is a risk that low allowances and flat-rate estimation methods will result in small credit balances becoming a burden in everyday life – pensioners,Savings or heirs are then faced with a tax trap, the extent of which they only find out when they have access to the administrative act. The feeling that the state can change the assessment basis at will, creates uncertainty and calls for resources-consuming protest.
uncertainty and loss of trust
The nature of a wealth tax is therefore not only fiscal, but deeply social and emotional. Anyone who has saved for years, invested or built up small assets is faced with the risk of being overwhelmed by blanket estimates. The practice of the high-ranking values, which often go beyond the actual circumstances, allows taxpayers tocycle of uncertainty and litigation. The burden of small credits not only reflects administrative arbitrariness, but also threatens confidence in fair and understandable tax policy. Open evaluation mechanisms and real rights of lawsuit are therefore indispensable in order to slow down this development and to ensure the principle of proportionality.
Screenshot youtube.com
