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Of course prop 13 "seems" fair, that's how it got passed. But it has terrible consequences. Adjusted for inflation, it makes taxes drop to 0 in the limit, whic
by klipt 7y ago
Of course prop 13 "seems" fair, that's how it got passed. But it has terrible consequences.
Adjusted for inflation, it makes taxes drop to 0 in the limit, which means there's no incentive for rich people to ever sell. Which means real estate becomes hoarded across generations by the wealthy class, which recreates the main feature of feudalism.
- Merrill 7y agoOther disincentives to sell are fairly high realtor commissions and fees, as well as capital gains taxes on the amount over the exclusion, which isn't very high given CA prices. Think of Prop 13 as "rent control" for homeowners.