Governator, please repeal proposition 13
If you knew your neighbor's taxes, you'd repeal Prop 13
Let’s face it. California is going bankrupt. I don’t have to put some quote or a link to some article toback my statement. Just turn on TV and listen to California news. (And if you REALLY want third party validation, take a look at this article.) California can’t even issue more bonds because the credit rating for the state tanked. Declining property values and declining employment equals declining tax revenue. And what about expenses? You guessed it. Going up.
So why don’t we get with the times and change? What about proposition 13?
If you are unfamiliar with proposition 13, it’s basically the stupidest real estate taxation law. Ever. Not only that, it’s an outdated law written in 1978.
In essence, Prop 13 limited property taxes in California to no more than one percent of a home’s assessed value. Assessments of property values could not rise by more than two percent per year, unless a property was sold, in which case it could be assessed at a new value. Prop 13 also added a measure which would require a two thirds majority to increase any taxes in California, making it very difficult for the legislature to pass laws to raise the tax rate, even when the state struggled to balance the budget.
Now, let me give you an example.
I had a coworker who live in San Mateo county who inherited a house from his grandparents, who bought the house in the 40’s or something like that. Less than $20k for the house. Guess how much he pays in taxes? Once again, my blog readers are brilliant: 1.25% of something over $20k (there was some re-assessment event). Guess how much the next door neighbor was paying? 1.25% on $600k. Is the house newer? Nope. Exact same layout, same size, same yard. Sure, the appliances are new and there were some updates, but for the most part, same house.
Now, I’m no genius here but I’m certain my ex-coworkers’ kids and his next door’s kids attend schools in same school district. And I’m pretty certain teachers there want to be paid in today’s dollars, not 1940’s dollars. Does my ex-coworker’s kid cost less? Does he eat less? Does he require no books? Do they have gnomes that teach kids in the basement and work for nothing?
What a dumb law. So why wouldn’t politicians change this? Because politicians don’t want their careers to get “electrocuted” to death (according to Wikipedia article):
A large contributor to Proposition 13 was the sentiment that older Californians should not be priced out of their homes through high taxes. The proposition has been called the “third rail” (meaning “untouchable subject”) of California politics and it is not politically popular for Sacramento lawmakers to attempt to change it.
Yes, ladies and gentlemen. The so-called people’s representatives care more about being your representatives than actually representing you.
If the people are “priced” out of homes due to taxes, well, isn’t that what free market economy is supposed to be all about? We’re all subjected to same conditions. Some survive, some don’t. But government cannot incentivize people to not change and to be basically outdated. When I was in track team in high school and got out of shape, I got cut from the team. I didn’t have no proposition mandating that fat, out of shape students cannot be cut from athletic teams. Who cares about the team? The team wants to win as a collective. If the lagger is bringing down the team, not only the coach, but the entire team wants him/her out!
Here’s what I don’t get: politicians don’t mind jacking the taxes on the golden gooses of the economy that actually create jobs - i.e. companies. Yet they care so dearly about this old, outdated crap tax law that only hurts everyone. I’m for cutting taxes but as long as it’s fairly distributed. Prop 13. is an unfair taxation.
Costs go up. That’s a fact of life. The people who support prop 13 are the same people who bitch and complain about how school teachers don’t get paid enough, or how there’s not enough crossing guards near schools, etc. If they want more social services, fork up the dough.
Governator, if you’re gonna retire, take this proposition 13 with you.
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