The tax rate has nothing to do with building houses.
77 karma · joined October 12, 2019
The tax rate has nothing to do with building houses.
The voters matter less than you think, largely because in these huge districts there will be an incredibly diverse range of opinions. Short of ordering troops to come in and murder people in broad daylight, getting such a huge number of people to coalesce around any single anything almost never happens.
Presumably the mortgage on the first home is quite far below current market prices, but this is not enough to drive the landlord to offer a price that is necessarily in line with rents at the time the home was purchased.
The mortgage interest is no longer tax deductible, so effective cost of ownership is higher than when compared to someone paying a mortgage on a home they live in.
The profit from renting is compared against profit from selling. If the rental price is driven too low, the owner will prefer to sell and collect the profits (and the home will likely be taken off of the available rental inventory, which will further drive up rents).
This would mean the inheritance in many cases will be the cash left over from the property sale.
The re-election rate of incumbents in California state senate districts approaches 100%. Getting into office in a district of a million people is about money, nothing else.
> http://www.tax-rates.org/taxtables/property-tax-by-state
> And if you rank the states by percentage revenue from property tax, you'll see they are right in the middle
> https://www.urban.org/policy-centers/cross-center-initiative....
Since the California median home price is more than double the national average for median home prices, your two claims seem clearly to not tell the whole story.
What prop 13 does is keep tax rates from increasing beyond a very small percentage of the original purchase price. Thus, property values increase by a lot while taxes collected do not.
So the first sentence is sort of true. Anecdotal, but a guy on my street purchased his property with no house on it in the 70s and pays like $100 per year even though it is easily worth over a million, which will heavily skew the stats. The second sentence is completely true:
> People who have held property for a very long time are taxed very little relative to how they would be taxed in other states, and people who are new are taxed a lot.
> Once higher property taxes are out of the picture, higher property values are purely beneficial for homeowners, which means there's every incentive to vote for anti-housing policies to enrich themselves at the expense of transplants and immigrants.
I will agree that it will impact the absolute price of the housing.
When we talk about "housing prices", what we are really talking about is "monthly payments". Increasing the tax rate will just result in an exchange of dollars previously going to mortgages to dollars going to taxes. The monthly payment will remain the same, largely unaffordable, rate.
So, I disagree that it makes housing more affordable, because it has done nothing to change the supply or demand.
If you have some sort of refutation for the claim that supply and demand affect price, you should publish and collect your Nobel Memorial Prize in Economic Sciences.
Predictably, the municipalities behave as an oligopoly because they know that people can no longer move just outside city limits, which is what people used to do when cities were behaving badly.
This seems to always be stated as if stating it makes it true. Prop 13 has little to do with high housing prices and a lot to do with getting more revenue for governments.
Prices are influenced by supply and demand. The artificial limiting of supply by all of the governments in California is the biggest factor in why the prices are outrageously high.
Lithium batteries can explode when the lithium comes in contact for water. I'm not clear on what the waste stream is doing for all the non-cobalt chemistries (mostly manganese).
The lead acid battery industry is incredibly competitive and prices unbelievably low due to this vertical integration and mechanized production. Pretty much the only way to beat the U.S. car battery prices is to subsidize (Korea) or pollute like hell (Mexico).
The U.S. is a net importer of lead, largely because all of the SLA batteries coming in from Asia end up in the waste stream as scrap, so there isn't very high demand for virgin (smelted lead concentrate) when all that scrap is sitting around.
How would his techniques perform if he were writing about consumer goods such as quadcopters or coffee makers?
I really hope postmarketOS grows.
Today, yes. Two years ago?
Intangibles. Whenever you go to talk to management or even co-workers about this stuff, they look at you like you are crazy. I think it is just human nature to not even think that something could go wrong, let alone make decisions based on this.
Case in point.