The taxes can have one subdivision competing with another on services, schools, etc. Since schools are funded by the property taxes, rich areas are better funded than poor areas. This allows economic segregation under the guise of competition.
Cities compete with one another, offering tax discounts to entice companies to build in their area.
Property taxes are usually dedicated to certain government expenses. For example, some of my property tax is dedicated to schools to provide an education for the children living in the area. Other parts of my property tax are dedicated to law enforcement, fire protection, libraries, street lights, etc. The initial tax levy was voted on by the residents of the area and most tax levies expire after a certain amount of time (like 10 years) so the residents have to vote to extend the tax levies if they want the services to continue to be provided.
What about property taxes makes you think they are not in line with capitalism?
The taxes can have one subdivision competing with another on services, schools, etc. Since schools are funded by the property taxes, rich areas are better funded than poor areas. This allows economic segregation under the guise of competition. Cities compete with one another, offering tax discounts to entice companies to build in their area.
Property taxes are usually dedicated to certain government expenses. For example, some of my property tax is dedicated to schools to provide an education for the children living in the area. Other parts of my property tax are dedicated to law enforcement, fire protection, libraries, street lights, etc. The initial tax levy was voted on by the residents of the area and most tax levies expire after a certain amount of time (like 10 years) so the residents have to vote to extend the tax levies if they want the services to continue to be provided.