3 ms·

On account of Proposition 13, existing property owners in fact do not form the main tax base. Personal income taxes are in total greater than property taxes in

On account of Proposition 13, existing property owners in fact do not form the main tax base. Personal income taxes are in total greater than property taxes in California. If you earn more wages your income taxes increase, but if your property appreciates your property taxes do not increase. Property owners get to vote and they stand to realize 100% of their capital gains, but they aren't really subject to taxation.

hkmurakami 10y ago
And hence we have the boom-bust cycles of the California tax base, with alternating waves of budget surpluses and steep shortfalls.
- zaroth 10y ago
  This is due mainly to CA's very progressive tax rate, it makes the lions share of income based on capital gains and therefore the tax revenue much more variable than in other states. This is unrelated to property taxes, which go to the city/town not the state.
WildUtah 10y ago
Property owners do not get to vote in the USA, not even in the Bay Area. Citizens get to vote. Citizens that own property are very motivated to vote against construction and so far have shown extreme solidarity against allowing dense construction even in small zones. Meanwhile renters, who appear to be a slim majority of citizens in the area, are not organized and do not vote reliably. How much any one group may or may not contribute in taxes has very little to do with political outcomes since taxes don't vote. At most there is an indirect effect as city budgets drive strategies to collect more revenue by officials. Those officials still answer only to voting citizens.
- Zach_the_Lizard 10y ago
  >Meanwhile renters, who appear to be a slim majority of citizens in the area, are not organized and do not vote reliably. Rent control / stabilization gives them an incentive to not allow construction as perhaps they, like all humans, oppose change but now don't have to face the negative consequences of opposing it. 50% of apartments in NYC are under some form of rent control / stabilization.
- Decade 10y ago
  Even worse, renters groups and community organizations are divided. I never joined the San Francisco Renters Federation because of its devotion to rent control and its hostility to landlords. Similarly, the Council of Community Housing Organizations is focused on raising money to the detriment of making housing. When the Bay Area Renters Federation and Grow San Francisco started, I felt some joy. Finally, after all these years, here is a housing movement that I can support. http://www.sfyimby.org/ http://www.sfyimby.org/
  - Decade 10y ago
    Oh. I meant, I never joined the San Francisco Tenants Union.

hkmurakami 10y ago

And hence we have the boom-bust cycles of the California tax base, with alternating waves of budget surpluses and steep shortfalls.

zaroth 10y ago
This is due mainly to CA's very progressive tax rate, it makes the lions share of income based on capital gains and therefore the tax revenue much more variable than in other states. This is unrelated to property taxes, which go to the city/town not the state.

WildUtah 10y ago

Property owners do not get to vote in the USA, not even in the Bay Area. Citizens get to vote. Citizens that own property are very motivated to vote against construction and so far have shown extreme solidarity against allowing dense construction even in small zones. Meanwhile renters, who appear to be a slim majority of citizens in the area, are not organized and do not vote reliably. How much any one group may or may not contribute in taxes has very little to do with political outcomes since taxes don't vote. At most there is an indirect effect as city budgets drive strategies to collect more revenue by officials. Those officials still answer only to voting citizens.

Zach_the_Lizard 10y ago
>Meanwhile renters, who appear to be a slim majority of citizens in the area, are not organized and do not vote reliably. Rent control / stabilization gives them an incentive to not allow construction as perhaps they, like all humans, oppose change but now don't have to face the negative consequences of opposing it. 50% of apartments in NYC are under some form of rent control / stabilization.
Decade 10y ago
Even worse, renters groups and community organizations are divided. I never joined the San Francisco Renters Federation because of its devotion to rent control and its hostility to landlords. Similarly, the Council of Community Housing Organizations is focused on raising money to the detriment of making housing. When the Bay Area Renters Federation and Grow San Francisco started, I felt some joy. Finally, after all these years, here is a housing movement that I can support. http://www.sfyimby.org/ http://www.sfyimby.org/
- Decade 10y ago
  Oh. I meant, I never joined the San Francisco Tenants Union.