4 ms·
IMO it is best to view conflicts like this in terms of trying to provide a benefit to some people, and how to pay for it. Prop 13 is promoted as helping people
by lokar 6y ago
IMO it is best to view conflicts like this in terms of trying to provide a benefit to some people, and how to pay for it.
Prop 13 is promoted as helping people of modest means (lower income, or retired) who see the value of their property go way up, thus imposing an unaffordable tax burden and forcing them to sell and move.
The cost of this benefit is currently (AIUI), higher income taxes generally, and particularly on high earners, as well as higher sales tax. If you look at state and local revenue over time you will see a shift away from property tax and towards these other taxes.
The thing to focus on is that the total amount of state revenue is going to end up about the same, laws like this just shift who pays it.
- caturopath 6y agoEquity is not the only concern, though Prop 13 is certainly a transfer of wealth too established, richer people from poorer, less-established ones. Prop 13 also incentivizes people _not to move_. This adds friction to an already high-friction market: people are disincentivized to upsize/downsize, move closer to work, etc., which harms the market beyond just the fact that it's an inequitable wealth transfer.
- zepto 6y agoAnd yet California has a buoyant real estate market. It’s not an inequitable wealth transfer. Only people who own property pay these taxes, and all property owners benefit from Prop 13.