Layoffs cause home owners to default, to pay no property taxes

[demtenjeep]

or any other taxes.

Teachers
Manufacturers
Auto workers
Aircraft workers

many others




The economy will never rebound as long as layoffs continue.


These groups are home owners, tax payers and spenders. When they are laid off, they stop spending, stop paying their share of taxes and the spiral continues.

It is that simple.

[demtenjeep]

1. This is also the reason most states are in such dire straits

as well

[demtenjeep]

2. here is a study

Mass layoffs cause foreclosures to soar
By Kris Hamel

The home foreclosure crisis in the United States continues to grow in scope and size. Workers are losing their homes at record rates as mass layoffs and plant closings affect millions.

A new twist has been added to the foreclosure disaster, one that accelerates the overall capitalist economic crisis even further.

What started out as a racist, sexist ploy by bankers and lenders to lure poor and working people into usurious subprime loans has now grown into an avalanche of foreclosures on homeowners with prime mortgage loans, mostly workers who have lost their jobs.

On May 25 the New York Times sounded the alarm with the headline: “Job Losses Push Safer Mortgages to Foreclosure.” Analysts predict that up to 60 percent of mortgage defaults in 2009 will be primarily due to unemployment, up from 29 percent in 2008.

http://www.workers.org/2009/us/foreclosures_0611/

[melm00se]

3. with foreclosures

the taxes become the responsibility of the lender

[demtenjeep]

4. like that will happen

many of my friends fear they will lose their jobs and their homes. They are already downsizing so that they will be ready for an apartment when the time comes. Many are also getting others to take their pets.

It is very sad to watch the demoralizing of Americans

[melm00se]

6. lenders will pay the taxes

because property tax liens trump mortgages and they are unwilling to lose the property for a couple of years back taxes.

Also, do you think that a monthly rental payment contains the property taxes divided by 12?

[SoCalDem]

8. They often just add them back into the eventual price of the house..if they ever sell it..

and until then, they do nothing...they pay nothing.. The unpaid taxes will end up being paid by the next "owner"..in the form of higher price and higher new tax base (which is based on the cost of the house when you buy it..) There will be a huge push to re-evaluate/appraise homes to reflect their "new" value, so look for tax revenues to keep going down.. People will not allow the taxes to keep being based on an over-inflated "value"..

States WILL be getting less and less..

[demtenjeep]

9. Exactly

states are suffering because of the foreclosures and that results in more layoffs which results in less spending and less taxes collected.

[demtenjeep]

5. SC wants to propose legislation that would give workers 2 weeks. Really what would that do?

petition overview | letter
Provide workers two weeks notice before layoffsTarget:Elected officialsSponsored by: Citizens of South CarolinaRevelations about the health of the South Carolina Employment Security Commission (ESC) and the Unemployment Insurance Fund have prompted the SC legislature to draft new legislation to reform the states ESC.

Legislation that would require companies to provide two weeks notice to employees prior to layoffs would:

- Reduce the burden on states unemployment insurance budgets by giving workers the opportunity to look for other employment before their current tenure expires.

- Reduce states dependence on federal assistance, thereby preventing further increases of the burgeoning national debt and states debt to the federal government.

- Lower the unemployment rate.

- Lower the rates of home foreclosures.

- Maintain consumer spending levels.

- Save companies money when laid-off employees are able to find work elsewhere.

- Lower occurrences of unemployment insurance fraud.

- Lower the numbers of laid-off workers that choose to milk the system by encouraging them to get back to work.

- Increase consumer confidence.

- Reduce stress on families and their children.

- Reduce rates of depression among unemployed workers.

- Lower the crime rate.

Americans want to work and most face the prospect of applying for unemployment benefits with reluctance and often shame. Unemployment leads to high rates of depression especially among men. It places immense strain on marriages and families who despair over the inability to meet the needs of their children.

Any legislation that encourages citizens to continue working helps to maintain consumer spending levels and the overall health of our economy.

Mass layoffs injure not only workers of the company directly involved but all businesses in the local economy. Businesses such as restaurants, retail clothing, electronics and furniture stores, grocery stores and automobile dealerships suffer greatly from unexpected layoffs. In turn those companies can be forced to implement hiring freezes, pay cuts and/or layoffs themselves.

This proposed legislation should be viewed less as worker rights legislation and more as insurance for local economies and state budgets to attenuate the shock of mass layoffs and reduce the states dependence on the federal government.

Thank you for your time and consideration.

http://www.thepetitionsite.com/1/two-weeks-notice-for-workers

[demtenjeep]

7. This is important to me as I have many friends and relatives facing layoffs

and many have said they won't be able to afford their homes when that happens.

These are people who pay their fair share, spend what they can and tried to save for a rainy day. It seems that no matter how hard they tried, it was one step forward, two steps back.