The Tax Man Cometh... Poor Les

I spoke to Les the other day. He's pretty interesting. He's the guy who spent 50 years hunting for his sister. (it had a happy ending)

He grew up here, leaving only to serve his country in Vietnam. When he left the service he came back to the place he called home...Anne Arundel County, Maryland. He never caused any trouble. He became an active and productive member of his community. He never gave Maryland politics a thought. Sure Maryland is an expensive place to live but he didn't mind. He always rented so taxes didn't matter much to him.

Les and I used to argue about taxes in Maryland. I believe that there are too many and the rate too high. In semi-jest I proposed an air tax. He advised me to hold my breath for 20 minutes each month just like my detractors suggested.

The feedback I got was the usual nasty grams and a slam of the State of Mississippi. I suppose they meant that anyone who hates higher taxes is a stereotypical "redneck" who doesn't deserve to live in Maryland, and should slink away to Mississippi. (That must be the place liberals call hell.) Les agreed with them until he tried to buy a home in Anne Arundel County.

He recently cashed in his stocks and savings and tried to buy a home. To be sure he wouldn't have a problem he deposited 82% of the asking price.
That made his payment (P&I) around $630.00. Les said he thought he had the deal clenched. But low and behold the tax man cometh.

After county and state taxes were added to the P&I, his mortgage jumped from a little over $600.00 a month to over $1200.00 a month. When the bank looked at his income they flatly denied him the mortgage. He simply didn't make enough money on his pension to afford the home of his dreams, despite his huge down payment.

This wasn't a million dollar mansion. It was a dwelling for sale at around $390,000.00. Nothing fancy but a place he and his wife could enjoy in their retirement.

Now he wonders where to go. He would love to stay in Maryland. He grew up here. His children are here and he has made a decent life as much as he could considering the tax hikes. But, he simply can't afford a home in the community he supported all of his life.

Now he is asking questions. Why is there a rain tax? Why does Anne Arundel County host Maryland Live Casino and our taxes are still climbing?These are all good questions. But his biggest question is how can an 82% down payment, on a 30 year mortgage, be so expensive, and out of reach?

And, sadly, "Why should I stay?"