An Op-Ed piece in the Boston Herald on August 31st, 2010 written by James Sherk, senior policy analyst at The Heritage Foundation, points out that government salaries and benefits continue to out pace those of the private sector.

The implication of more and more generous pay and benefits for the public sector is that taxes are going up.  As the public sector grows at a rapid pace, the private sector continues to operate in economic conditions that have proven very difficult to improve.  With the combination of pay, benefits and funding retirement obligations, the private sector is going to find it more and more difficult to carry the public sector.

Another factor we at Taxforeclosures.com see is that the smaller the government entity the smaller its sources of revenue.  State, county and municipal governments are limited to generating revenue within their boarders.

Outright tax increases and revenue enhancements disguised as higher fees are the most obvious sources of additional income.  Property taxes will continue to be the mainstay of generating revenue to cover expenses.  Unlike fees, which are paid in advance, property owners can, and do, withhold or delay real estate tax payments for a number of reasons, to include just because they can.

When push comes to shove over unpaid property taxes, the governments really want the cash, not the property.

Given the current economy a wise investor can see the profit potential of investing in tax lien certificates and tax deed instruments.  People will pay to keep their property or, you end up with a valid lien and the worst possible option, you get the real estate.

As state, county and local governments need more and more money, tax lien certificate and tax deed investing just keeps getting better and better for them and the investor.