Funding municipalities: income tax vs. property tax

Fundamentally, "gentrification" or displacement of people of lesser means is forced through by the property tax aspects of public finance. Property taxes are based on the value of a house, and this value is disconnected from income, or the ability to pay. Over time, all things being equal, people on limited incomes won't be able to pay property taxes in a rising market.

John Brady, in an op-ed in the New York Times Connecticut Weekly, "Retire the Property Tax," suggests another way. From the article:

What we need to do is phase out the property tax and replace it with a municipal income tax. This tax would be set as a small percent of a person’s state (or federal) tax or adjusted gross income. A municipal income tax has a number of advantages: everyone with a taxable income would contribute to the budget according to their true means. The tax base would be higher than it would be under property values. The system would be fairer, cheaper, easier to administer and less acrimonious. Most important, it could generate enough revenue to meet our town’s growing needs.

This makes more sense than trying to limit new investment and restrict the possibility of new residents.