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where do our current taxes go? CA as a state has one of the highest (or the highest?) tax burden in US. The schools are still awful and we have to rely on priso
by option 6y ago
where do our current taxes go? CA as a state has one of the highest (or the highest?) tax burden in US. The schools are still awful and we have to rely on prison populations for fire fighting? WTF?
- epistasis 6y agoProperty tax burden is super low for the longtime wealthy. If you were wealthy in CA > 25 years ago, you're likely not paying much at all in taxes. We instead rely on high sales tax and income tax.
- option 6y agoyou still are paying ungodly income and sale taxes. If you own property and don’t pay (or pay very few) income taxes that means you probably wouldn’t be able to keep your house if your property tax base is reset.
- jdietrich 6y agoSales tax (VAT) in most European countries is around 20%. The top rate of income tax is typically 50% or more. That's just what it costs to have decent public services. https://en.wikipedia.org/wiki/European_Union_value_added_tax#VAT_rates https://en.wikipedia.org/wiki/European_Union_value_added_tax...
- nsnick 6y agoWe pay 50% income tax in California and don’t have any decent public services.
- rconti 6y agoNo argument there! But 50% + 8.6% sales tax vs 50% + 20% VAT is definitely a difference. Of course, the area under the curve matters, too. I have no insight into what effective tax rates people are paying in 50% top-bracket tax countries in Europe. As a double-income no kids couple in Silicon Valley, I think we're still paying something like 18% effective tax rate federally.
- rcpt 6y agoBuy. Borrow. Die. Those successful property investors never have to lift a finger or pay a dime
- triceratops 6y agoIf your property is worth that much more, you can sell it and get a smaller place in the same area and pocket a nice profit. Prop 13 discourages new development in much the same way that rent control does.
- rconti 6y agoOur sales taxes are 8th in the nation, and, importantly very few states are much lower at all. Almost no states are 6% or below, to our 8.68% combined average.[1] We've already discussed income tax in this thread, but the parent to your post was talking about "if you were rich > 25 years ago" .. implying the person is probably retired, and isn't paying the highest income tax rates. House paid off, don't need to draw a lot from your retirement, low property taxes. 1. https://taxfoundation.org/state-and-local-sales-tax-rates-2020/ https://taxfoundation.org/state-and-local-sales-tax-rates-20...
- 01100011 6y agoThe roads are absolute shit and the electrical grid is falling apart. It was tempting to settle down and buy a house amidst the years crises, but I'm not signing up to be responsible for the problems in this state.
- alextheparrot 6y agoEducation, prisons, health and human services [0]. They actually cut schools by about 7 billion in the last budget. I’m also pretty impressed how we spend over 130B a year (And that’s just the state budget). [0] http://www.ebudget.ca.gov/budget/2020-21EN/#/BudgetSummary http://www.ebudget.ca.gov/budget/2020-21EN/#/BudgetSummary
- rcpt 6y agohttps://en.m.wikipedia.org/wiki/1978_California_Proposition_13 https://en.m.wikipedia.org/wiki/1978_California_Proposition_... But to be honest this is one of those things where ignorance is bliss
- option 6y agoI know about it and support it for personal residences.
- rconti 6y agoIf you know it so well, why do you still think we have the highest tax burden?
- option 6y agobecause we do
- ytpete 6y agoBut we don't: https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494/ https://wallethub.com/edu/states-with-highest-lowest-tax-bur... CA has a higher tax burden than average, but nowhere near the highest in the US. Illinois, Iowa, and Ohio all have a higher per capita tax burden than California - among others.
- triceratops 6y agoOther states are able to do without it. It's also responsible for California's homelessness problem. Why in the world do you support it?
- bcrosby95 6y agoCalifornia per capita budget is around the middle of all states in the USA - somewhere around 20th highest. The state has high income and sales tax to compensate for reduced property taxes due to prop 13. This is why many people think California has high taxes. Because they move here, get hit with a high income tax rate, then get hit with a standard property tax rate if they buy a home. Meanwhile, my parents pay around 1k/year in property taxes on their million dollar home.
- war1025 6y agoI wonder how much California nonsense would just go away if they repealed Prop13. It just seems like such a dumb law every time I hear it brought up.
- rrrrrrrrrrrryan 6y agoLandowners have held disproportionate political power for the entire history of American democracy, but if enough renters show up to the polls and vote their whole ballots, ridiculous policies like this can begin to slowly change.