Readers suggested a topic on taxes. "Could we have a discussion about the ticking property tax bomb? I rent in Newton, MA. Essentially all of my colleagues have had their property taxes double over the last 10 years, despite city taxes limited by law to 2.5% increases. Even with a few tax-increase overrides, the real increases far outpaced the Prop 2 1/2 restrictions."

"No-one cared that much when their house values were skyrocketing (it was a kind of brokerage fee). But now with a collapsing market and looming foreclosures, I predict tax wars will soon break out all over the map. (Local towns have become addicted to very agressive spending.) As a potential buyer, even if prices fall dramatically, property taxes and assesments may very well still make it too costly to buy."

One added, "In California, due to prop 13, there is little worry about taxes. In States 'Marked to the Market' property taxes are a nightmare. I know several couples that are selling houses they have owned for 9+ years as a result of property tax increases. Their incomes did not keep up with tax and insurance increases."

"This is an untalked of consequence of this bubble. And as you point out 'Local towns have become addicted to very aggressive spending.' I can visualize everything from complacency to assessors getting shot."

Another said, "A lot of the condo boom in Center City Philadelphia was encouraged by a recent law granting 10 year tax abatements to new construction. When those ten years are up . . . whammo! I’m assuming the new owners expect to sell out before then? I’m wondering to whom? I doubt the city will reset the abatement."

"Philadelphia itself redid the method it used to assess property taxes just after we sold and got the heck out of dodge, it had been based on land/age/improvements, and they changed to a 'comp-based' model - I heard tax assessments in our old neighborhood (manayunk) went up a LOT (thanks in part to comps like ours, we sold for 3x what we’d paid four years earlier, with no improvements. I still feel a little guilty)."

"So people there were very grumbly about the fact that they were paying a mint (in property taxes) for 60-100 year old rowhomes while the kiddoes buying in the rapidly built new construction condos (with parking!) didn’t have to pay anything."

"Of course as the Inquirer pointed out, the high valuations on the new condos more than made up for any property tax savings! Naturally."

"Could get very ugly in Greater Philadelphia - there is a pretty high amount of residential inventory when you count the neighborhoods. And the business tax environment is notably poor."

"Honestly I hope things aren’t as bad as I anticipate, since I’ve been really happy to see the positive changes the boom has wrought in Philadelphia (most of them at least). So maybe it really is 'different' there."

One from Colorado. "I posted this morning about Larimer County, Colorado voting down a property tax increase for prisons. When home values were going up that was easy. No so much now. Not only will tax increases become more difficult to swing, lower property values mean less revenue to the cities/counties. Will gov have to learn to live with less or will they go the route of Larimer County and try to tack on more 'user' fees?"