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.

Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: Bread Upon The Water who wrote (114155)	5/24/2012 12:12:30 PM
From: tejek	Read Replies (1) \| Respond to of 149317

I go with the other responses here. Prop 13 may have contributed to restricted supply by encouraging people to hold on to their property longer than normal to tax advantage of the low tax rate. Both happened simultaneously........some people held on to their properties while others were touting how much more house they could get with their taxes artificially low. When I got to CA in the late 80s, the media was making a big thing of it. They claimed Prop 13 was the best of all worlds........taxes were low while housing prices were rising and in turn leading to rising assessments...thereby neutralizing the loss of revenue........except that never really happened. Parents were taking out equity from their homes and giving it to their children so they could buy a house and keep the upward spiral going. Housing became a commodity and a casino game all in one. That all ended in 2008 because the whole thing was a lot of BS. In the late 80s, CA was continuing to experience high job and population growth. It masked all the ills Prop 13 was creating. However, when the growth slowed in the early 90s, the problems created by Prop 13 began to surface. Inadequate tax revenues to pay for state and local services. Many rich, white people had cashed in and left the state because they were fearful of the growing Latino population. Social services began to get cut and there was more homelessness. Fighting between Rs and Dems in Sacramento increased. Prop 13 is the major reason I left CA........and now I am having to fight Rs here over the very same issue.