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    Property Tax Law and the Passion for Equality

    February 7, 2018 by Will Morrisey

    2018 Note: Mr. Geraldo Rivera has enjoyed a long career as a television journalist, initially in the New York City area and eventually on nationally-broadcast news programs. He quickly established a reputation for impassioned ‘advocacy journalism’ in the longstanding ‘muckraking’ tradition. By the 1990s, he had amassed a personal fortune sufficient to purchase a substantial residence in Locust, New Jersey, overlooking the Navesink River. He purchased controlling interest in a struggling local weekly newspaper, The Two River Times, founded by Claudia Ansorge, saving it from bankruptcy. He also contributed a column to the paper, and in September 1993 he published an article condemning New Jersey’s Farmland Assessment Act of 1964, which provided a property tax reduction to farmers. In the nearly three decades since the enactment of the law, clever accountants had discovered that landowners could qualify as ‘farmers’ if they could show they produced a small crop of some sort—for example, an annual harvest of timber from several acres of woodland.

    Mr. Rivera was not amused, and I was amused by his failure to be amused. The following article was published under a pseudonym in the paper on October 20, 1993.

     

    Mr. Geraldo Rivera’s condemnation of the Farmland Assessment Act must be admired on at least one point. Behind Mr. Rivera’s indignation—seen in his exclamation that “a law designed to help one of our most disadvantaged classes of citizens, the family farmer, has instead been twisted, misused, and corrupted over the years, until now it bears no resemblance to the original”—looms the benevolent face of Judge Robert Bork. Although Mr. Rivera did not number among Bork’s conspicuous defenders at the time of the judge’s nomination to the United States Supreme Court, it is refreshing to see such an energetic brief filed on behalf of the doctrine of “original intent,” scorned by Bork’s enemies. As Mr. Rivera clearly sees, to abandon the original intent of the framers of any law is to open all our laws to manipulation, whether by the self-interested or by the self-proclaimedly ‘idealistic.’

    I fear, however, that Mr. Rivera may now be attacked with all the venom once aimed at his soul-mate in Constitutional probity, Robert Bork. Moral reductionists who inflate ad hominem vindictiveness into pseudo-principles will say: ‘Rivera is cynical and self-interested. In complaining that his neighbor, who enjoys a farmland assessment, pays “perhaps 1/10 as much” in taxes “for the same size property,” Rivera merely betrays his envy for those whose accountants and tax lawyers are more expert than his own. Rivera could solve his problem by buying a couple of beehives, but no—he has to make a federal case of it.’

    Such critics may continue their vituperative assault along these lines; ‘Rivera is not only cynical, he is sophistical. He demonstrates that residential and farmland assessments are indeed unequal. But “unequal” hardly means unfair. By conflating inequality and unfairness, Rivera deliberately subverts the rules of logic for his own advantage, a shocking travesty of the fair-mindedness he pretends to espouse.’

    And yet, we all know that such charges must be calumnies. Mr. Rivera’s justice and wisdom are widely acclaimed, nowhere more often than in The Two River Times. All of his readers must jump to his defense against those who would blacken his reputation. It is an honor for me to go first.

    Let us begin by consulting the principles of the United States Constitution with respect to property. As it happens, the issue is addressed by James Madison in a famous passage from the tenth number of The Federalist. As you will recall, Madison here discusses the need “to break and control the violence of faction”—the tendency of all governments, even popular ones, to be divided conquered by those who, in their blind ambition, declaim against the rich or oppress the poor. In order to avoid the self-destruction of republican government and to arrest the slide toward anarchy and despotism, Madison recommends the encouragement of many different kinds of property. “The diversity in the faculties of men [Madison writes], from which the rights of property originate, is… an insuperable obstacle to a uniformity of interests. The protection of those faculties is the first object of government. From the protection of different and unequal faculties of acquiring property, the possession of different degrees and kinds of property immediately results; and from the influence of these on the sentiments and views of the respective proprietors ensues a division of the society into different interests and parties…. The regulation of these various and interfering interests forms the principal task of modern legislation and involves the spirit of party and faction in the necessary and ordinary operations of government…. The apportionment of taxes on the various descriptions of property is an act which seems to require the most exact impartiality; yet there is, perhaps, no legislative act in which greater opportunity and temptation are given to a predominant party to trample on the rules of justice.”

    There is, for example, a temptation for the majority party to boost its power by decrying certain tax deductions as constituting a “welfare program for the rich,” in Mr. Rivera’s uncharacteristically ill-considered and factitious phrase. (After all, a tax break means you keep your own money; a welfare check means you’re getting somebody else’s.) Famously, Madison argues that the Constitution will lessen the dangers of political demagoguery by enlarging the territory and population governed by republican institutions. The United States will be a large country whose citizens will exhibit diverse interests and virtues—a country whose citizens, on account of the very diversity of their property, will not easily combine to enable “any one party to outnumber and oppress the rest.” The “rage” for any “improper and wicked project” such as “an equal division of property” would require, for its satisfaction, a despotic government that would at once enforce economic equality while destroying the political equality that could continue to enforce economic equality. This rage can be frustrated only by the deliberate encouragement of diverse property.

    The Farmland Assessment Act evidently was intended to foster such diversity. It has succeeded rather too well, in Mr. Rivera’s opinion. He wants the law amended to restrict eligible property owners to “family farmers,” a category he leaves tantalizingly undefined. He assumes that such restriction will lower his own property taxes, and generally conduce to liberty and justice for all.

    It is more likely that the effects of the Rivera amendment will be mixed. Some property owners will take the hit, or sell to others who will, thereby lowering taxes on the Rivera estate. Others will deed their land to a non-profit conservation trust, or to a government, or engage in some other tax-reducing scheme, removing property from the tax rolls altogether and raising taxes on the Rivera estate. Still others will sell their property to developers who, depending upon the density of the development, may or may not incur government expenses greater than the tax revenues generated. The net result will be increases in developed lands privately owned and in undeveloped lands publicly owned or owned by non-profits. The class of property most endangered—undeveloped or lightly developed large parcels privately owned by individuals—will continue to decline. And this may or may not result in any increase in property tax revenues. It cannot result in increased equality of taxation, unless owners passively accept the higher assessments. This they have already proven themselves disinclined to do.

    The TRT editorial printed next to Mr. Rivera’s essay observes, “the general public would be better served by careful deliberation and thoughtfully crafted legislation than hasty, election-year patchwork and posturing.” Such caution contrasts favorably to expression of moral indignation, especially since these so often leave the polemicist open to charges of tu cocque. As a reward to his staff for its superior prudence, and as a happy solution to his property tax woes, Mr. Rivera might consider moving his newspaper operations to his Locust property. After all, judging from Mrs. Ansorge’s recent description of your operations, TRT offices are a veritable beehive of activity; if beehives are an accepted agricultural activity deserving of farmland assessment status, the move would satisfy tax authorities. Better still, the move would elevate TRT staff to the quality of life to which they deserve to become accustomed. Mr. Rivera’s neighbors will remain free to cut their timber in peace, and sell it to their relatives, or any other willing buyer. The purposes of the U. S. Constitution will be served, the judgment of its Framers vindicated once more. All will be well.

    Admittedly, in vindicating Mr. Rivera’s justice and wisdom, I am compelled to call upon him to sacrifice his opinion, and to douse the coruscant flame of his passion for equality, a passion which, paradoxically, has raised his reputation so far above the common herd. It is a small sacrifice, one that will only burnish the bright escutcheon of his fame—which, as Madison’s colleague, Alexander Hamilton, wrote, is “the ruling passion of the noblest minds.”

    Filed Under: American Politics