The focus of many of the contests for the US Senate was approval of President Bush's judicial nominees. The judiciary will play a determining role with regard to land and natural resources, real estate and private property. In recent years, the judiciary has partially revived the takings clause of the Fifth Amendment to the US Constitution. Today, regulatory takings that substantially diminish the value of private property are supposed to involve compensation for the building owner and landowner.
Yet, much of the panoply of government in our country is reluctant to embrace this ruling. Property owners must still deal with hordes of bureaucrats, many of whom seem to have nothing better to do than devise new ways around this ruling. With expedited consideration of judicial nominees, the takings clause can become truly invigorated.
With regard to urban real estate, many of our center cities feature both high taxes and poor municipal services. With increasing numbers of middle-class blacks now fleeing to the suburbs, it is clear the problems of the center city go beyond the residue of racism in our country. Failing public schools, lax law enforcement, corruption and a culture of suspicion of those who work, own property and start businesses, make many of our center cities unviable. These are matters that cannot be adequately addressed from afar, nor from the bench, but must be addressed in the state and local governments.
The Republican agenda includes broadening access to home-ownership not through subsidies and quotas, but by making home-ownership affordable by, for example, eliminating regulations that increase the costs of construction. Every American who works should have a reasonable opportunity to own a piece of this country. And, every American who works should have a portion of his or her payroll tax invested in securities representing ownership shares in our economy. We can do this without jeopardizing the promises that have already been made.
Tax reform is absolutely necessary. Our 20th tax code is now so complex nobody can be sure of its effects on the economy. It is costly to administer and problems with compliance, both legal and otherwise, make it a poor source of revenue. We need a 21st Century tax code that encourages or at least does not discourage work, saving and risk-taking. The liberalizing of the capital-gains exclusion for owner-occupied housing has noticeably strengthened residential real estate values in our country. It is time we do the same thing for commercial real estate and the stock market.
F. Patricia Callahan ([email protected]) is president and founder of the American Association of Small Property Owners in Washington DC, a public-policy advocacy and litigation group.
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