Schwarzenegger Adviser Buffett Suggests California Property Taxes Are Too Low

The Wall Street Journal ^ | August 15, 2003 | JOSEPH T. HALLINAN

[I still care]

That sounds right. We have the same thing in FL, where it is limited how much your taxes can climb when you live in your house.

[Reeses]

I wonder why Democrats like property taxes. Like sales taxes they are not progressive and tax lower income people at a much higher percentage of their discretionary income. Real estate is in a valuation bubble that is about to burst as interest rates go higher. That's a double whammy if the socialists raise property taxes as property value goes down.

[John Lenin]

Strike one for Arnie !

[evolved_rage]

More than likely he bought a 600 square foot shack back in the 70's, and has upgraded the hell out of it.

[Callahan]

Buffet a doofus? I don't agree with his liberal leanings, but the guy knows how to make money.

[Lijahsbubbe]

So what. C'mon, vote for Arnold. He's cool! It'll be fun, we can be a cool party! ;^)

[Chesterbelloc]

That is correct. Property taxes are set at roughly 1% of the price that you pay for your home. When a house changes ownership the tax amount is reset to the new level.

[Callahan]

That's what I'm saying. Republicans should be for sales taxes and property taxes--as a way to reduce the income tax.
They hit you for what you consume, not what you produce--big difference.

[BlessedByLiberty]

Dear Mr. Buffet:

Please feel free to donate millions, or billions to the coffers of the federal government or any state government you chose.

Just keep your hand out of the pockets of mine.

Why trade Gray for another pick pocket Mr. Schwarztnegger?

[cogitator]

Interesting. In neighboring Virginia (I live in Maryland), the maximum tax bracket starts at $17,000 family annual income, which is below the official U.S. poverty level. Virginia has had some trouble in the past couple of years balancing its budget (partly because they repealed a hated car-tax when the budget surplus during the boom 90's could pay for it), and they're still trying to figure out if they can change the tax code without ticking off too many citizens.

[truth_seeker]

This analyst concludes that property taxes are out of control in Nebraska. Voters in Nebraska need to obtain the equivalent, of Prop. 13.

The reason California voters enacted Prop. 13 was so property taxes wouldn't reach the levels of Nebraska. Does Nebraska have income and sales taxes, as high as California?

I think Buffetis a bad idea, for Arnold. George Schultz is a good guy. He has government experience credentials. Buffet is stirring up a bunch of crap.

[Ronaldus Magnus Reagan]

In the Philadelphia, Pa. suburbs, you can assume that property taxes will be approx. 1.5% to 2% of the assessed value of the house PER YEAR. So, a $500,000 house will have about $8,000 in property taxes per year. Pa. state income tax rate is 3.1% (it's a flat tax rate). Compared to other states, that sounds like a pretty good deal.

[Burlem]

Mr. Buffett said his preliminary assessment of California showed that the state's budget had depended on billions of dollars collected in capital gains taxes, much of it generated by the bull market of the late 1990s. "In effect," he said, "they set their financial planning based on a financial bubble." Now that those gains are gone, California's budget must be balanced by money from elsewhere.


******Sure wouldn't want to cut anything would you?
These folks scare the shi- out of me.
If Arnold is elected we are in deep trouble, charisma, be damned. Clinton had charisma too, didn't he?

[Dane]

Buffet a doofus? I don't agree with his liberal leanings, but the guy knows how to make money

Yes Buffet does know how to make money and is a Wall Street darling, but it seems he lives in his own bubble, IMO.

Why Buffet's opposition to end of the estate/death tax? Because of his own personal opinion. Buffet does not believe in leaving his progeny his estate. That is fine, in his will let him leave his whole estate to the Federal government, nothing wrong with that, but a person shouldn't mandate that by government fiat. Tell that to small business people or family farmers, who get killed by the death tax.

Again JMO, but Buffett is a very selfish and meglomanianic person. Now wonder he likes Hillary.

[William McKinley]

Two reasons:

1) They can be raised without passing laws. Once in place, you just 'reappraise' the properties, and voila, you have a tax increase without having to tell the voters you are raising their rates.

2) They turn property ownership into property rental. You don't own your land- you rent it from the government. Perhaps not legally, but if you don't pay your property tax they will take the land so in effect it is the case. Democrats HATE private property.

[Bob]

Strike one for Arnie !

Strike one??

I guess you must have missed his 1) pro-abortion, 2) pro-gay-rights, 3) pro-gun-control, and 4) pro-big-government-programs positions.

[johnb838]

But in general, the limitations on property taxes have forced state government to rely on other taxes, such as the personal income tax, and to engage in complicated maneuvers to reallocate the state's revenue and help entities that faced funding gaps, especially schools

And they say this like its a good thing. If all Ahnold is planning to do is to raise taxes to cover the deficit, why not just leave Davis in there? He can raise taxes and spending just as well as Ahnuld can.

OTOH -- if Davis is in there the pubbies will fight. If Ahnold is in there they'll roll over and surrender, just like the pubs in Washington. I might just be about to throw my support to Davis.

[ElkGroveDan]

That's what I'm saying. Republicans should be for sales taxes and property taxes--as a way to reduce the income tax. They hit you for what you consume, not what you produce--big difference.

You have to understand the origins of Prop 13. Property values were soaring in the 70s but income wasn't. The tax assesors were going around a couple times a year re-assesing homes and jacking up property taxes. Porperty taxes soared out of control as government's insatiable appetite gobbled up everything these people owned. Retired people on fixed incomes found themselves thrown out on the streets because of assesments on the potential value of homes that they never planned on selling.

[SupplySider]

Please feel free to donate millions, or billions to the coffers of the federal government or any state government you chose.

That hits the nail on the head. His pious schemes for other people's money are fine and dandy, it's just too bad he wants to enforce them at government gun point.

[coloradan]

Is the job of a governor's advisor to tell the governor how to make money? (Is the purpose of a government to extract as much wealth out of its subjects as possible?)