What happens when a government takes control over so much property that there aren't enough tax-paying producers left to pay the bills?
Look no further than Hartford, Connecticut for a real life example:
"Hartford, Connecticut’s capital city and hub of the state’s insurance industry, is edging closer to joining a small club of American municipalities: those that have sought bankruptcy protection.
The city’s $49.6 million budget hole and the impending departure of one of its biggest employers, Aetna Inc.,have shined a light on its unusual predicament: Half of the city’s properties are excluded from paying tax because they are government entities, hospitals and universities."
https://www.wsj.com/articles/hartfords-finances-spotlight-property-tax-quandary-1496750405
Look no further than Hartford, Connecticut for a real life example:
"Hartford, Connecticut’s capital city and hub of the state’s insurance industry, is edging closer to joining a small club of American municipalities: those that have sought bankruptcy protection.
The city’s $49.6 million budget hole and the impending departure of one of its biggest employers, Aetna Inc.,have shined a light on its unusual predicament: Half of the city’s properties are excluded from paying tax because they are government entities, hospitals and universities."
https://www.wsj.com/articles/hartfords-finances-spotlight-property-tax-quandary-1496750405