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Caps on property tax, and tax deductions for mortgage interest payments, and not taxing appreciation on a home sale, are very simply, juicy tax breaks for rich
by listenallyall 4y ago
Caps on property tax, and tax deductions for mortgage interest payments, and not taxing appreciation on a home sale, are very simply, juicy tax breaks for rich people. Not saying everyone who owns a home is rich, but, as a group, they are far wealthier than the collective group of renters.
It is impossible to defend these programs, and also complain about inequality, rich not paying their "fair share", whatever. Anyone who does so -- Bernie, E. Warren -- is a hypocrite.
- anamax 4y agoProp 13 keeps California's property tax revenues stable. This is especially true/important when property values crash, as they do every 10 years or so. (It's starting now as people start to realize that mortgages are going up from 5%, not down.) Why? Because all of the people who bought more than a couple of years ago will see their regular 2% increase because the crash didn't hit their property's value. Meanwhile, newer homeowners will go to the assessor and get a reduction in value, which reduces their taxes. The former outweighs the latter.
- masonic 4y ago>not taxing appreciation on a home sale That's what capital gains taxation captures.
- sokoloff 4y agoThere is an exclusion amount for personal residence where capital gains are taxed at 0% federally. It’s $500K for married couples at the moment. That is likely what GP was commenting on with that clause. https://www.irs.gov/taxtopics/tc701 https://www.irs.gov/taxtopics/tc701
- listenallyall 4y agoNo, not really, as sokoloff stated, there is an exemption from capital gains tax on a primary residence up to a half-million in appreciation.
- bojangleslover 4y agoYeah well luckily those same folks are paying close to or sometimes beyond 50% in income tax