3 ms·
This seems to be a universal property of governments. Or of budgets, really. Within major corporations departments tend to spend up to the limit of their budg
by nostrademons 7y ago
This seems to be a universal property of governments. Or of budgets, really. Within major corporations departments tend to spend up to the limit of their budget (and then some, with debt) regardless of whether it's efficient, and then continue to do until the parent company goes bankrupt.
Eliminating Prop 13 would at least fix some of the misincentives in the housing market so that senior citizens living alone could afford to downsize to a 1BR condo and free up the empty 4BR house for a family with 3 kids.
- dantheman 7y agoNot all companies -- we're seeing many companies that have been able to stockpile massive amounts of cash, e.g. Apple.
- dantheman 7y agoWith the current limits on construction in CA eliminating Prop 13 would mean the fixed income senior citizens would have to sell their house to pay property taxes and then move out of state because they can't afford the rent on a 1BR.
- not_real_acct 7y agoYep. I think my Mom is typical: because of Prop 13, she can't move. Her property taxes on a new home would be 20X as much. Due to this, she's kinda 'stuck.' She lives in a house that's larger than what she needs, but she can't justify moving. I think she'd love to "cash out" some of that equity, but she can't. This is how we got reverse mortgages (which are horrible.)
- lern_too_spel 7y agoIf your mom is over age 55, she can't use that excuse due to Propositions 60 and 90.