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I agree this is the main take-away from the piece. The tax base has just collapsed. Surely there was some mismanagement, but even without that they would stil
by muzz 13y ago
I agree this is the main take-away from the piece. The tax base has just collapsed. Surely there was some mismanagement, but even without that they would still be in trouble.
- comrade_ogilvy 13y agoBut the tax base did not collapse. It drifted downs to ~60% of peak, while the populace drifted down to ~40% of peak. Shrinking is always going to be a painful and not easy process, but the raw numbers suggest that it was doable.
- muzz 13y agoProperty Tax did collapse, and from 1960 to 1980. http://www.freep.com/graphics/financial-history/detroit-bankruptcy-four-taxes-3.gif http://www.freep.com/graphics/financial-history/detroit-bank... This begets the downward circle the article refers to, i.e., that because of lower property tax revenue, they have to raise other taxes which in turn cause further decline, etc.