Posted on 09/11/2014 6:57:48 AM PDT by SeekAndFind
Edited on 09/11/2014 7:09:06 AM PDT by Admin Moderator. [history]
It's no secret. California is expensive. But is it a little more nuanced than that; coastal California is very expensive while inland California is just moderately expensive. Yet, despite being a well-known fact, Sacramento doesn't appear too concerned with California's growing price tag even though there is evidence it could be slowing the Golden State's economic growth.
(Excerpt) Read more at realclearmarkets.com ...
yeah, housing, that’s the ticket, the ruinous taxes are not the reason, yeah............./sarc
The bottom line of Agenda21 is propping up banks with the value of loans on the books. If California kills prop 13 and we go back to confiscatory taxes, home values as a tax shelter will plummet. People would be more ‘upside down’ than they are today, but so would the banks, in a reaction so massive that it could trigger a global crash.
RE: yeah, housing, that’s the ticket, the ruinous taxes are not the reason, yeah............./sarc
Don’t forget regulations, and illegal immigration ( California is practically a sanctuary state ), and of course PENSION liabilities.
Someone has to pay for those...
Taxes and burdensome regulations are the only reasons the CA economy is slowing.
When and if these mighty midgets in the Capital of California finally realize that it’s the TAXES and all their government rules and regulations that are destroying that state, then they’ll probably begin to get out of their blue funk. But the voters have to stop voting for these idiots also.
Wonder why there is no growth in CA? Here is the latest reason. Out A-hole governor signed into law yesterday a requirement that EVERY business in the state provide EVERY employee, both full and part time, with a minimum of 3 sick days a year.
Slight correction. California IS a sanctuary state.
Thats the only thing saving us for the time being - the employees won't exercise their new 'rights' if they have no idea what those rights are.
Flooding the state with illegal immigrants, onerous taxation of practically every facet of consumption, oppressive rules concerning “air quality” that have nothing to do with improving the breathability, failure to fully develop all the potential for resource extraction, setting unrealistic goals for “preservation” of non-indigenous species, and crumbling infrastructure probably have nothing at all to do with the limitations of California’s growth.
Some 95% of the personal woe in this world is self-induced.
If Prop 13 goes, each city or county would be able to set its own tax rate. That would allow cities and counties to compete by either lower tax rates to attract people who want lower taxes or raise tax rates for those people who want more government services.
The way it is now everything is run from Sacramento.
Prop 13 did put a break on some state tax increases because of the supermajority requirement for raising taxes, but now the Dems have a supermajority and the Pubbies can't stop anything.
The only thing good about Prop 13 is that it works like a tax incentive to corporations: they hold property for a long time so they are paying very low tax rates compared to companies in other states.
...and compared to the homeowners who gave them this bonanza at the voting booths. It doesn't help that the same voters undermine the good effects of Prop 13 by voting in Dem majorities who increase other fees, taxes, and regulations on these same corporations.
It’s no secret. California is expensive.
Guess who has to pay for all the illegals for life.
I take it you don't have much of a memory for how high those rates got. In my county, they reached 8.5%. I want you to imagine paying a local tax bill of $75,000 every year. That's what we would face at current valuations... except that our house is paid for. We are approaching retirement. We would have to sell. That is what was happening when Prop. 13 was passed.
So, I don't buy your case.
maybe but how about high taxes, crazy politics, rules and regs that make it impossible (or nearly so) to build a new business, some of the most anti-business legislation in all of the country
other than that yeah sure housing costs
wages in California are some of the highest in the nation
The vast majority of states don't have anything like Prop 13. When you see ads for homes in other states they tell you the price of the home and the local tax rates. If you can't afford the price or the taxes, then you look elsewhere.
In Boulder County, in order to keep seniors from fleeing as taxes increased, they allowed the seniors to pay less than what they owed while in their homes. When they passed on, their children could either pay what was owed and keep the home, or sell the home and use some of the proceeds to pay back what was owed. This was a good compromise in my mind.
How would you like to pay a Mello-Roos fee? A fee that is not deductible from Federal Income Tax? That is what I have to do because the Dems who were unable to increase taxes were able to pass legislation that allowed cities to impose fees on new owners.
Now the situation is even more unfair. Someone who purchased a home in my neighborhood a year before the imposition of the Mello-Roos fee pays a lower tax AND pays no Mello-Roos fee. I have to pay a higher tax (based on a higher appraised value for a similar home) and I get to pay Mello-Roos.
How fair is it that corporations can sell their properties to other corporations in such a way that the property doesn't have to be reappraised, but individual citizens like you and me can't? There is corporate owned property that has passed through various owners that is still being taxed at the rates when Prop 13 first went into effect.
My feeling is that if corporations weren't getting the benefits they do from Prop 13 they would fight harder against all of the other nonsense that Sacramento sends their way.
In any case, the vast majority of the benefits of Prop 13 go to corporations. The largest chunk of the small remainder of benefits goes to those homeowners who purchased their homes before or soon after its implementation.
Hardly a model for free market incentives that are supposed to apply equally to all market participants.
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