Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (205410)	5/31/2009 2:54:31 AM
From: Steve_C	Read Replies (2) \| Respond to of 306849

Grandpa, you're confused. I gave an example of a "tax break" that resulted in a lower home price. In direct contradiction to Jimmy's belief that "tax breaks" always result in higher home prices. It was a stylized example designed to jump start jimmy into thinking like an economist. But, stylized or no, the example mirrors the fact that prior to Prop 13, "wealthy" areas paid a higher percentage of property tax per home value than "poor" areas. While it's always difficult to hold other things constant, many studies found that higher taxed communities had higher home prices when all other factors were considered (largely because of perceived differences in educational services). This resulted eventually and very indirectly in the passing of Prop 13. Why am I bothering with you dregs?