Beautiful Ellen! Such an obvious solution, and the fact that legislators continue to shy away from it is testament to the stranglehold of big banks on people's consciousness. Thank you for keeping the drumbeat going!!
As University of California economics professor Mason Gaffney wrote on many occasions, the most destructive measure adopted by Californians was Proposition 13. This law created a generation and class war between those who owned property when Prop 13 was passed and those hoping to someday own a residential property. Land speculators in California were the major beneficiaries.
If the objective was to protect long-time owners of a residential property from being displaced once they retired and experienced reduced income, the solution was right there -- a "circuit breaker" policy that capped the annual property tax PAYMENT based on a formula that calculated affordability. The difference between what the owners paid and the total obligation treated as a lien on the property to be paid upon transfer of ownership via sale or inheritance.
Well, actually, property taxes need to be abolished. You are simply a lease holder with our current property tax policies. You never truly own your property as the state maintains what is in effect a lien.
It is both economically efficient and fair to eliminate the annual taxation of housing units (at least those not considered mansions, the taxation of which might be thought of as a luxury tax). Housing units are depreciating assets that require ongoing expenditure for maintenance; then every decade or so huge expenditures are required for systems replacement. So, yes, let's press our legislators for the elimination of the property tax on the depreciated value of housing units.
As almost every economist who ever wrote on the subject tells us, the value of the land underneath buildings is based on the quality of the public goods and services brought to that location. Compensating the community for these "benefits received" is appropriate.
As Thomas Paine would (and did) say, imposing a charge for the privilege of exclusive control of land is only "common sense."
Beautiful Ellen! Such an obvious solution, and the fact that legislators continue to shy away from it is testament to the stranglehold of big banks on people's consciousness. Thank you for keeping the drumbeat going!!
Thanks Marilyn!
As University of California economics professor Mason Gaffney wrote on many occasions, the most destructive measure adopted by Californians was Proposition 13. This law created a generation and class war between those who owned property when Prop 13 was passed and those hoping to someday own a residential property. Land speculators in California were the major beneficiaries.
If the objective was to protect long-time owners of a residential property from being displaced once they retired and experienced reduced income, the solution was right there -- a "circuit breaker" policy that capped the annual property tax PAYMENT based on a formula that calculated affordability. The difference between what the owners paid and the total obligation treated as a lien on the property to be paid upon transfer of ownership via sale or inheritance.
Well, actually, property taxes need to be abolished. You are simply a lease holder with our current property tax policies. You never truly own your property as the state maintains what is in effect a lien.
True, but we're trying to work within the politically feasible, and eliminating property taxes isn't likely any time soon.
Sadly.... altho a state legislator tried introducing it in UT last year so maybe in 50 yrs it will be a thing.
It is both economically efficient and fair to eliminate the annual taxation of housing units (at least those not considered mansions, the taxation of which might be thought of as a luxury tax). Housing units are depreciating assets that require ongoing expenditure for maintenance; then every decade or so huge expenditures are required for systems replacement. So, yes, let's press our legislators for the elimination of the property tax on the depreciated value of housing units.
As almost every economist who ever wrote on the subject tells us, the value of the land underneath buildings is based on the quality of the public goods and services brought to that location. Compensating the community for these "benefits received" is appropriate.
As Thomas Paine would (and did) say, imposing a charge for the privilege of exclusive control of land is only "common sense."
Agreed.