Property taxes work very well at the local level because you can’t move the property. Local taxes on machinery might encourage some firms to locate outside of the taxing area. Such taxes would be better applied at the county or state level.

During the past 20 years or so, the Federal Govt. has increasingly tried to mandate programs which must be carried out by local governments -- without providing any funds to carry out the mandates. (Usually referred to as “unfunded mandates.”) In some cases, the Federal Govt.’s failure to take actions or assume any responsibility shifts costs to state and local governments.

40 % of space in some schools is devoted to special education programs mandated by federal or state agencies but funded primarily with local property tax. California spends over a $100,000,000 annually in prison costs for illegal aliens, who are encouraged to enter the U.S. by federal government programs.