4 ms·
> If paper wealth takes a shit the people that will be impacted will be retirees and the wealthy, not your average joes. Also the elephant in the room is that
by mbesto 5y ago
> If paper wealth takes a shit the people that will be impacted will be retirees and the wealthy, not your average joes.
Also the elephant in the room is that property taxes are a derivative of your net worth, not your income. So if paper wealth (due largely to RE) continues to outpace income then we're in for a big hurting soonTM.
This is the hilarious part about critics against a wealth tax - we already have a wealth tax. I live Texas and people are about to have a brutal wake up call when they can't afford $10k/year in taxes because their $200k ranch they bought 5 years ago (and cost them $40k down) is now worth $500k.
Note - I have mixed feelings about the proposed wealth tax. The proposed implementation was misguided.
- JamesBarney 5y agoI think property taxes in Texas are one the biggest reason our house prices have remained somewhat sane.
- mbesto 5y agoYou clearly haven't been to Austin... there's nothing sane about property values here.
- JamesBarney 5y agoIt's also the fasting growing city in the nation, and I think it'd be worse if we didn't have a ~3% property tax. But probably better if they didn't have zoning.
- naasking 5y agoAustin is utopia of sanity compared to Toronto where I live.
- dnautics 5y agoAm I crazy? My friend owns a house in Sacramento. We (I'm in Texas) compared notes, and our property tax rates are comparable.
- mbesto 5y agoAnecdata: I lived in the bay area and moved to Austin, TX. My tax rate went from ~1.5% to ~2.2%
- carom 5y agoI believe property taxes in Texas can be reevaluated when the value changes while you own the home. In California it is only upon sale.
- dnautics 5y agoOh that makes sense, thank you. In Texas they drive around and reassess your house in the springtime. Which is why all of the improvements to my house will be on the backside! Meanwhile the both of us are very recent homeowners, so the reassessment hasn't happened yet. I do have a friend that has 100% service-connected disability... And Texas has a 0% property tax for veterans with that categorization. He's thinking about moving
- pedrosorio 5y agoNo such "problems" in California due to prop 13 (yay...)
- SilasX 5y agoYou don't seem to be taking into account wealth other than real estate there.