I get you're argument Skeeter. It's not difficult - it's just not based on reality. You're saying taxes provide zero consumer benefit therefore any increase will necessarily increase the cost of owning a home.
You're so quick to want to prove you know something about economics (which i know you don't) that you haven't even bothered to understand the framework I'm presenting.
If prop 13 is repealed, so every homeowner pays based upon market value, how much does that really increase the overall tax collected? If housing turnover over rates in Ca are really only 8 months lower than the national average, then in actuality most people are already paying a tax commensurate with market price. Now we must consider what benefits are derived from the increase in tax revenues collected, as well as who pays the tax and who receives the benefits. Because, if the extra tax comes from individuals who were also a drain on the economy then it's possible for market values to go up - as now, presumably, there is an increase in services (possible just not likely). Somewhere in all that is the impact on house prices. Now when considering all factors, I wouldn't be surprised to see a drop in home prices with a repeal of Prop. 13, especially if overall tax levels were raised, just no where near 67%. That's just dumb.
Now, if you really knew anything about economics, besides never using the term "all else being equal" when taking about transitions in general equilibrium, you would never make absolute statements about market equilibrium. I'll give jimmy a pass though because he never claimed to know economics. But really, I don't care what you think - you're an idiot, really. I want to read Live2Sail's thoughts. |
