In the real world governed by the laws of physics the sentence would conclude “…must come down.”  All physical things must comply with Newton’s Third Law.

In the realm of state, county and local governments ruled by politicians, what goes up does not come down.

We’re talking about the taxes to run the governments.  Those taxes go to support unevenly delivered government services, generous payrolls (exceeding private sector jobs) and expanding benefits for active and retired government employees.

The only weapon taxpayers have to apply the “must come down” of the physical world is the referendum.  Only by getting enough voters to sign a petition, put tax cuts on a ballot and get a majority of the popular vote can these taxes be cut.

Not always a guarantee.  In Massachusetts a ballot question to eliminate the state’s sales tax was defeated in the general election of 2008.

What does all that have to do with the Tax Lien Certificate investor?

It means there will always be taxes and taxpayers in difficult straights not able to come up with the money to pay their real estate taxes.  Tax lien certificates with their valuable above market rates of interest, secured by real estate, can be seen as a renewable resource.

Now you can begin to understand why the biggest institutional and wealthiest individuals invest in tax lien certificates.  The normal rules don’t apply.