Whats wild is the commercial side didn’t get closed. I understand the argument for individuals or households (I don’t love it - I’m on the wrong side of it, but at least it’s somewhat defensible), but if you’re running a business and your income isn’t keeping up with inflation, that’s called failing.
replyIf the SEIU healthcare workers union is going to amend the state constitution, they should chip away at Proposition 13 instead of amending the constitution to make a bad tax that encourages capital flight.
replyAnd it will never be repealed.
replyOld voters like the house they brought 20 years ago for 100k being worth 1.5 million today. They also like not paying taxes on that 1.4m in wealth accumulation.
Is it not that the gains are unrealized? If they sold the house they would pay capital gains tax?
replyI'm not a finance person but I think capital gains kicks in if you sell early. Otherwise, just regular taxes?
replyopposite, income taxes take place first. after a waiting period, its just capital gains. capital gains taxes are typically lower than income taxes so this encourage long term holding
replyProperty taxes are unrelated to income tax
replyI think not wanting to pay some yearly tax on that $1.4 million because the government pretends that the same as having $1.4M cash in the bank, or making $1.4M in a year, is fine.
replyNot wanting to pay the property taxes associated with a $1.5M home is the problem.
Which is why we also have things like a deferred property tax program! The way to "solve" the problems Prop 13 addresses would be to expand programs like that, but homeowners—disproportionately active middle- and upper-middle-class voters—want to have their cake and eat it too.
replywhat reasonable persons wants to pay taxes? Just because you like to pay extra doesn't me we should.
replyI mean, I do too. Mine just happens to have been bought before the last inflationary cycle.
replyBut let's be clear: Prop 13 is bad and is holding down property taxes on both commercial and residential land.
replyBut neglects to consider why it won a majority of votes. Why did it? And how does Prop 13 relate to the more recent Prop 19, which substantially weakened it?
reply> News at 9.
replyThe idiom is "film at 11."