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>The distinction between "biz" and "people" doesn't make sense The business doesn't necessarily need to be based out of California, which means that money does

>The distinction between "biz" and "people" doesn't make sense The business doesn't necessarily need to be based out of California, which means that money doesn't necessarily stay in California. Also, while that business can reinvest in the state, I just don't see how that can quickly reach the needs of citizens. A corporation saving millions might pay its employees more, who will pay income tax, which will eventually reach a state government only causing further centralization of state powers. >There is a reassessment on sale. Your right. That reassessment is exactly what drives away large new corporate jobs. Imagine company A has a warehouse since 1975. A pays taxes at (1975 level)*1.02^34. This increase is significantly less than actual property values have increased. So when its main competitor, company B, comes to town shopping for a huge tract of land, it's looking at paying reassessment taxes. If they both did the exact same job with the same income, company A stands at a huge advantage solely because it pays so little in property tax compared to B. Warren Buffet nearly destroyed Arnold Schwarzenegger's campaign when he stated that prop 13 was terrible, specifically targeting the reassessment clause. http://www.wealthandwant.com/docs/Buffett_Prop13.html http://www.wealthandwant.com/docs/Buffett_Prop13.html

anamax 18y ago
> The business doesn't necessarily need to be based out of California, which means that money doesn't necessarily stay in California. Biz taxes are paid by customers. So yes, some of the savings will go to out of state customers. If you want to argue that CA should have fewer biz that serve out of state customers, feel free. > Also, while that business can reinvest in the state, I just don't see how that can quickly reach the needs of citizens. Huh? > A corporation saving millions might pay its employees more, who will pay income tax, which will eventually reach a state government Now I understand. You don't count money paid to employees as "reaching citizens". You think that the only money that "reaches citizens" comes from govt. That's an interesting position. > Warren Buffet nearly destroyed Arnold Schwarzenegger's campaign when he stated that prop 13 was terrible, specifically targeting the reassessment clause. Yes, Warren Buffet. The guy who argues for the estate tax yet has arranged things so his wealth will never be taxed. Moreover, he sells insurance to folks whose estates can't be so arranged so they can pay the estate tax. (In other words, he profits from the estate tax.) Buffet is a great stock picker, but if you're looking to him for advice on good and evil....

anamax 18y ago

> The business doesn't necessarily need to be based out of California, which means that money doesn't necessarily stay in California. Biz taxes are paid by customers. So yes, some of the savings will go to out of state customers. If you want to argue that CA should have fewer biz that serve out of state customers, feel free. > Also, while that business can reinvest in the state, I just don't see how that can quickly reach the needs of citizens. Huh? > A corporation saving millions might pay its employees more, who will pay income tax, which will eventually reach a state government Now I understand. You don't count money paid to employees as "reaching citizens". You think that the only money that "reaches citizens" comes from govt. That's an interesting position. > Warren Buffet nearly destroyed Arnold Schwarzenegger's campaign when he stated that prop 13 was terrible, specifically targeting the reassessment clause. Yes, Warren Buffet. The guy who argues for the estate tax yet has arranged things so his wealth will never be taxed. Moreover, he sells insurance to folks whose estates can't be so arranged so they can pay the estate tax. (In other words, he profits from the estate tax.) Buffet is a great stock picker, but if you're looking to him for advice on good and evil....