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And the suppressed supply leads to further price increase. And that feedback loop only further increases the tax penalty for moving. On top of that, when you
by ghouse 6y ago
And the suppressed supply leads to further price increase. And that feedback loop only further increases the tax penalty for moving. On top of that, when you die, if your children inherit the property, they keep the Prop 13 tax basis (and then the federal government increases the investment basis to the fair market value at the time of death). Best of both worlds! (but horrible public policy)
- njarboe 6y agoProp 13 is slowly recreating a feudal land-holding aristocracy in California. In feudal Europe the aristocracy did not pay taxes on land in exchange for fighting and providing other knights in times of war(a bit of simplification). Other land holders had to pay tax on land. Give California a few more generations or a period of high inflation/hyper-inflation and the situation in California will be similar without the fight for the King occasionally obligation.