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There where still state property (and later income) taxes, just no federal taxes. Americans are taxed twice now.
Also: Hail lord Ilpalazzo!
State of Arkansas has no property taxes but has an income state tax.
State of Texas has property taxes but no income state tax.
In my personal opinion, property taxes are kind of fucked. Taxes owed based on value of property as it is and not how much money you actually have or make.
I could understand such a tax being paid upon selling a home, but being taxed for the value of it regularly when it can fluctuate or the government just flat out lies about what the housing market is like are a real annoying problem. My neighborhood actually staged protest when the value of all homes increased by like 150% overnight. Even real estate agents called bullshit on the government estimates.
(The fact that people would get angry about their home value INCREASING is a sign that its a problem)