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Popular wisdom in California is that the budget problem is happening because it's too hard to raise taxes.

stretchwithme 16y ago
Bunk. Spending doubled in Cali between 1996 and 2006, up $100 billion. I read somewhere that when Prop 13 passed, revenue from property taxes was $5 billion and now its over $40 billion. The real problem is that our interests are not represented in Sacramento.
- jonhendry 16y ago
  "I read somewhere that when Prop 13 passed, revenue from property taxes was $5 billion and now its over $40 billion" So? Prop 13 passed in 1978. How much has the value of the property increased in that time? Have property tax revenues even kept up with inflation?
  - chc 16y ago
    There is also more property being taxed than in the '70s. My father loves to drive around California and point out all the homes and businesses that weren't around when he lived here in the mid-'70s.
  - stretchwithme 16y ago
    I mention that because it disproves that Prop 13 caused a decline in revenue. Instead, there was a 700% increase. Prop 13 actually made it more attractive to buy property, which caused its value to go up and more housing to be created and taxed. The same thing happened in Boston in the 1980's. Property taxes were slashed and then values doubled in within a decade. The same thing always happens when you stop taxing something to death. It recovers, grows, flourishes.
hga 16y ago
There is no amount of tax revenue that politicians can't spend (and if they can borrow, use as leverage for more borrowing). There's a thesis expressed in this recent book (look for discussions of it) http://www.amazon.com/Never-Enough-Americas-Limitless-Welfare/dp/1594033765/ http://www.amazon.com/Never-Enough-Americas-Limitless-Welfar... that a or the fatal flaw (my term) of liberalism is that it has no limiting principle. I find it very hard to look at California and not agree.
chc 16y ago
No, popular wisdom in California is that we have the most inept legislature in the country and the unions are actually running the place. California doesn't appear to have any problem raising taxes.

Bunk. Spending doubled in Cali between 1996 and 2006, up $100 billion. I read somewhere that when Prop 13 passed, revenue from property taxes was $5 billion and now its over $40 billion. The real problem is that our interests are not represented in Sacramento.

jonhendry 16y ago
"I read somewhere that when Prop 13 passed, revenue from property taxes was $5 billion and now its over $40 billion" So? Prop 13 passed in 1978. How much has the value of the property increased in that time? Have property tax revenues even kept up with inflation?
- chc 16y ago
  There is also more property being taxed than in the '70s. My father loves to drive around California and point out all the homes and businesses that weren't around when he lived here in the mid-'70s.
- stretchwithme 16y ago
  I mention that because it disproves that Prop 13 caused a decline in revenue. Instead, there was a 700% increase. Prop 13 actually made it more attractive to buy property, which caused its value to go up and more housing to be created and taxed. The same thing happened in Boston in the 1980's. Property taxes were slashed and then values doubled in within a decade. The same thing always happens when you stop taxing something to death. It recovers, grows, flourishes.

hga 16y ago

There is no amount of tax revenue that politicians can't spend (and if they can borrow, use as leverage for more borrowing). There's a thesis expressed in this recent book (look for discussions of it) http://www.amazon.com/Never-Enough-Americas-Limitless-Welfare/dp/1594033765/ http://www.amazon.com/Never-Enough-Americas-Limitless-Welfar... that a or the fatal flaw (my term) of liberalism is that it has no limiting principle. I find it very hard to look at California and not agree.

chc 16y ago

No, popular wisdom in California is that we have the most inept legislature in the country and the unions are actually running the place. California doesn't appear to have any problem raising taxes.