Skip to comments.Prepare for Demise of California; Liberals Will Get All the Government (and Tax Hikes) They Want
Posted on 11/11/2012 8:27:52 AM PST by Kaslin
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Some fifteen years or so ago I read an article that claimed that 2/3rds of the tax benefits from Prop 13 are being accrued by businesses. It is probably even more now. This makes sense as businesses sell property less often than individuals.
However, some businesses have gotten more clever at avoiding taxes. They have come up with ways by which a property can be transferred from one company to another without it counting as a sale, thus avoiding a reassessment and property tax jump. I wouldn't doubt if 75-80% of the tax benefits from Prop 13 are now being accrued directly by businesses.
If Prop 13 went away, there is nothing that says that businesses will have to have their property taxes increased. When I was living in Colorado my property was reassessed every year. Even though my house value more than doubled over the time I owned it, my property taxes didn't. This is because I lived in a relatively conservative city. The board lowered the mill levy each year so that taxes went up at a rate far lower than my house's value.
I used to be a big supporter of Prop 13. Politicians, however, have completely undermined it. Money that is collected locally is now sent to the state. Money collected by state organizations is funneled back to cities and counties. Some people have to pay Mello-Roos fees which unlike property taxes are not deductible. Everyone has a hand in everyone else's pocket.
If Prop 13 were completely eliminated then each city could still set property taxes as it wished. Those cities that wanted to retain businesses could lower property taxes across the board or just on businesses in general, or on a case-by-case basis as is done throughout the country to attract companies.
For a long time the Democrats didn't have enough votes to increase taxes, but they had more than enough votes to pass hundreds and thousands of inane laws that increased the cost of California government without properly funding it.
I believe that the voters by-and-large were OK with this. I think that's why the Democrats never got the 2/3rds majority they needed: the voters wanted their cake without having to pay for it. Redistricting confused people and now we have enough Democrats to vote for taxing and spending. If they go too far out of line I believe that liberal voters in a few key districts will hold their noses and vote for just enough progressive "republicans" to keep the goodies flowing and the taxes from growing.
With or without Prop 13 we're going over the cliff.
If you've driven along Hwy 1 up near Monterey you know we can't have picked a more beautiful cliff to drive off of...
'Temporarily' = FOREVER....
For example, I believe that every conservative living in a solid blue state like California should support their local Green Party. If the Green Party becomes a truly viable party then leftist Democrats would feel more comfortable leaving their party to join the Greens. The Republicans could then retain a plurality for a bit longer.
Then conservatives could start a fourth conservative party to keep the Republicans honest without necessarily throwing the election to a weakened Democrat Party.
I also like the idea of trying to recruit Asians. I believe that Republicans won't have to cave on too many things to get Asians to join the party. Certainly far fewer caves than would be necessary to woo the Hispanic vote.
if you haven’t already got a plan ready to go, get one soon to move the FR operations out of Calif.
You better get while the getting is good.
Watch the same thing sweep the country as the Socialist Utopia is pursued to the ultimate end.
California is a banana republic it went in the s**t hole years ago can’t be saved it’s more like Mexico.
12-16 bill a year in services to,illegals and then we wonder why we have a deficit.
First thing they will do is gut Prop 13.
They will eliminate the 1% Property Tax ceiling on businesses.
Then they will eliminate the 1% Property Tax ceiling on Rental Property. After all, that is a business too.
Finally they will get around to Homeowners and that will be that.
In order to insure that the Evil Landlords won’t up the Rent to pay for the increased Property Tax Bill, they will institute Rent Control.
Bank on it.
Nice thought. Mexicans already refer to California as Northern Mexico. They are not joking. We lost CA decades ago, now even the last red districts are becoming blue.
I’m in CA too and I completely agree with you. Just let it collapse. The sooner the better. Do you live anywhere near San Bernardino? The downtown is a crumbling ghost town. Entitlements and union pensions. The rest of the state will follow.
That was my point... fine... let it happen... can they still blame Bush?!
I am saying that spending by California will be federalized. Tax payers in the other states will make up short falls in California, Illinois, New York and any other state that cannot balance its budget. DumBO will use the Fed to monetize any debt that cannot be made up by taxes.
The best we can do it give California to the Chinese as payment for our debt they hold.
As we speak I am engaging a real-estate agent to sell and another agent in a red state to buy. I will be out of here before the end of the first qtr 2013. I am a bit depressed about it. I never imagined that something could drive me out of the state of my birth, my fathers birth and his fathers birth.
with a super majority they will
come for your money
come for your guns
come for your sanity...
Thank God I’m over 1800 miles from that 5th column hell hole.
What we’re very likely to wind up with, is a pro nationalist party. God knows what that will result in, because history has shown us where that leads all too often.
Sound economic policy, and reasoned pro-U. S. policies are called for, but the pendulum once swing too far in the wrong direction, generally goes too far when swinging back in the other direction.
We are messing with fire folks. A lot of people are going to get burned. He’ll, a lot already have.
California has 38 million residents. Only ten million of them just voted.
I don’t know what the population demographics are for the state, but I’d be surprised if there weren’t ten million people out there who didn’t vote, but could have.
If only 2.15 million of them had voted with us on the 6th, Romney would be our president.
If folks would quit writing this state off, and devise a plan to get it’s decent citizens to vote, we could turn not only this state, but the entire nation around.
This is our number one job.
“When California becomes a complete hellhole Mexico can have it back”
Not my part!!
Yeah, couldn't be we took it in the shorts when real estate collapsed and we're so underwater we can't get out yet. That's how it is with me. I can't afford to take a $40K hit selling short.
And no, Arizona is NOT bluer than California. West Tucson is very blue, but the rest of the state is far from being like California.
You're right...I was looking at an early county map, it's since been updated. Sorry.
Just to let you know...we're not all bad. My county (Shasta) went 63%-33% Romney with about 53000 total votes cast.
I actually understand. I was stationed at Tehachapi, CA. That county has no effect on how California goes. It suffers because of the fools in SF & LA. Happily, as a military guy, I was able to move in 2004.
There are actually many good people in California who stay for a variety of reasons. I just get frustrated with those who come to Arizona and immediately try to infect Arizona with the same policies that have made a mess of California - which was once an incredible, fantastic state.
Just wait till they start construction on high speed rail. Then you will really see the California economy boom.
Republicans should simply vote as Obama did as a Senator: “Present”.
Thank you. Sounding more tempting every day....
12-16 bill a year in services to,illegals
CA dems operates the same as other dems don’t make the poor rich but make the rich poor,it’s all about control.
“Just wait till they start construction on high speed rail. Then you will really see the California economy boom.”
Yeah, it will be ( that is if it’s ever completed) the “illegal alien commuter.” Just think, non-citlzens will have the best commuter train in the country, and they will probably get to ride it for free!