Our View: Means Testing, By All Means!

Critics of the residential tax exemption approved by the Chatham Select Board last week say it is unfair because it would benefit property owners who are year-round residents, whether they need it or not, and penalize nonresident owners. They say a more equitable approach would be to impose a means test, so that only those who truly need financial help will receive it.

 By all means, bring on the means testing!

 Let’s also impose a property tax means test on nonresident owners. Those who need financial assistance should receive the residential tax exemption (RTE), but those who do not should have their property taxes increased commensurately. We can’t recall there being a means test on the tax cuts in Trump’s Big Beautiful Bill, which disproportionately benefited the wealthy and corporations. Big oil companies are reaping record-setting profits thanks to the Iran war, yet they still receive subsidies and tax breaks from the federal government. Do they need them? Let’s means test it! Many states from which local second homeowners have homestead exemptions which give resident property owners a break on their taxes. Most, if not all, are not means tested.

 Last week it was reported that retiring Apple CEO Tim Cook received a $47 million bonus to stay on as the chair of the company’s board of directors. According to Forbes, Cook is worth $2 billion. Perhaps a means test would convince Apple to take that bonus and instead invest it in their workers or perhaps lower the price of their over-priced products. In fact, means testing corporate bonuses is a great idea. 

 None of that will ever happen, because when it comes to means testing, it seems that it only applies to those at the lower rung of the economic ladder. The message is: we don’t believe you really need help. Prove it. Until RTE critics are willing to put up with means testing that applies to them as well, they should stop trying to stigmatize their year-round neighbors.