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I think this has the problem of trapping people into houses on declining property values. You've got some elements to mitigate that somewhat, but prop 13 really
by dv_dt 9y ago
I think this has the problem of trapping people into houses on declining property values. You've got some elements to mitigate that somewhat, but prop 13 really seems like a cleaner simpler way to do the accounting because there is no hysteresis effects. Anything else, and you really provide a disincentive for many people to sell just for the added headache.
- erikpukinskis 9y agoHow would people get trapped? If the property value is declining they can just get it reappraised and pay an even lower tax rate than what they were expecting when they bought it. From a tax perspective that should be a windfall for them.