States Battle Property Tax Pressure Points to Aid Homeowners: Jonathan Williams on The Hugh Hewitt Show

Appearing on The Hugh Hewitt Show, ALEC President and Chief Economist Jonathan Williams sounded the alarm on runaway property taxes.

“This is where the rubber hits the road,” said Williams. “Some people have [property taxes] in their escrow. Others are cutting a check every year for the price of big government. And that’s, by the way, who’s driving these property tax burdens—it’s local governments that are spending too much.”

Hewitt pointed to a report in The Wall Street Journal showing that Boston plans to shift a billion-dollar commercial property tax shortfall onto residential homeowners.

“That’s extreme,” Williams said. “And you have to ask yourself: why did that happen? It’s big government problems creating more big government problems.”

He pointed to the bigger picture: businesses have fled Boston and other high-tax states for years.

“Why is there not commercial activity in downtown Boston? It’s their high regulation and high tax burdens that drive people out.”

It’s a pattern Williams says he sees everywhere—and one that Rich States, Poor States tracks closely. The annual ALEC report ranks all 50 states by how friendly they are to taxpayers, businesses, and growth.

“You better believe it,” he said. “Americans continue to vote with their feet away from high-tax states like California, New York, and Illinois. They go to places that value economic opportunity and give people a better quality of life at a lower cost of life.”

Hewitt asked whether Rich States, Poor States factors in property taxes when calculating state rankings.

Williams was clear: “You can see how your state’s property tax burden stacks up against the other 49 states and what we’re hearing from legislators across the country is that this is the number one issue—huge assessment increases.”

Williams highlighted Utah—ALEC’s #1-ranked state—as a model for how to tackle the crisis.

“One of the reasons why Utah is number one again is they’ve actually addressed the property tax problem,” he said.

Contrast that with California. “They tried to solve this in 1978 with Prop 13,” Hewitt said. “But ever since then, the legislature has been trying to work its way around it.”

Meanwhile, states like Massachusetts are going in the opposite direction. “Now they’re just shifting the commercial shortfall onto homeowners,” he said. “I don’t know how people can afford that.”

Hewitt then pointed to New Hampshire as a bright spot in the region. “They always usually do pretty well in Rich States, Poor States,” he said.

Williams agreed in jest: “It’s not saying a whole lot to say you’re the best in New England,” he laughed. “But New Hampshire is obviously ‘Live Free or Die.’ No income tax. No state sales tax. and is an incredible economic opportunity model.”

Still, even New Hampshire has to fight off high-tax neighbors.

“Massachusetts and other states try to get their greedy hands on that money,” Williams warned. “They say, ‘Hey, you earned it in our state—we’re going to tax you,’ even if you live in New Hampshire.”

That includes Massachusetts’s new “millionaires’ tax,” which Williams says could backfire as businesses and high earners shift to tax-friendlier places.

Hewitt closed the segment by asking about another pressure point: skyrocketing homeowners’ insurance in states like Florida. “Does that figure into Rich States, Poor States yet?”

“Not yet,” Williams said, “but I think it’s really hard to ignore the insurance costs these days. It’s something we’re looking at as we continue to build out what it means to be a competitive state.”

For now, Williams relays the economic trends that are crystal clear: states that embrace low taxes, education freedom, and labor reform are attracting people and investment, and those that don’t are falling behind.