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> If Prop 13 were to disappear overnight, rich people whould whine but they can absorb the increase and keep living in their house so they'll be fine. I disagr

by scoofy 3y ago

> If Prop 13 were to disappear overnight, rich people whould whine but they can absorb the increase and keep living in their house so they'll be fine. I disagree with you on many points, but this one the most. I don’t think you realize how much wealth is hoarded in CA via property, especially property tied up in corporations. Los Angeles Country Club, for example, sits on some of the most valuable real estate in the world. They pay a pittance every year in taxes mostly because of prop 13. It would likely be infeasible to exist without its tax breaks. I would be fine with prop 13 if it only applied to retirees. It doesn’t. It mostly effects commercial properties and inherited properties. The reason someone would have to move to another town (which pretty much would happen anywhere else in the country) is that the only way you can be priced out of an entire region is if you completely detach value from the tax rate for decades. In an area with normal property taxes, you’d really only have to move to a different neighborhood.

jjav 3y ago
Los Angeles Country Club is not a rich person living in their home though. It's not a person and the property is not a home. Sounds like we agree that Prop 13 must not apply to corporations. That never made any sense and should not be. The idea of Prop 13 is to protect poor people from being pushed out of their lifelong home by taxes. It's insane to allow corporations to benefit from Prop 13. > I would be fine with prop 13 if it only applied to retirees. In the realm of actual humans (not corporations), in practice the main beneficiary is only retirees. Sure, applies to everyone, but it takes a very very long time for the tax delta to become meaningful. I've owned my home for ~25 years and the delta between property taxes under prop 13 and if I bought the property today is less than 2K so basically nothing so I don't much care. But give it 30 more years of growth and I suspect the delta will be substantial and by then I'll be scraping along trying to survive on a fixed social security income, so the delta will, I suspect, be absolutely key in being able to stay home instead of trying to scramble at that age to find some cheap property in some faraway place I've never been to.

by scoofy 3y ago

jjav 3y ago

Los Angeles Country Club is not a rich person living in their home though. It's not a person and the property is not a home. Sounds like we agree that Prop 13 must not apply to corporations. That never made any sense and should not be. The idea of Prop 13 is to protect poor people from being pushed out of their lifelong home by taxes. It's insane to allow corporations to benefit from Prop 13. > I would be fine with prop 13 if it only applied to retirees. In the realm of actual humans (not corporations), in practice the main beneficiary is only retirees. Sure, applies to everyone, but it takes a very very long time for the tax delta to become meaningful. I've owned my home for ~25 years and the delta between property taxes under prop 13 and if I bought the property today is less than 2K so basically nothing so I don't much care. But give it 30 more years of growth and I suspect the delta will be substantial and by then I'll be scraping along trying to survive on a fixed social security income, so the delta will, I suspect, be absolutely key in being able to stay home instead of trying to scramble at that age to find some cheap property in some faraway place I've never been to.