- Joined
- Aug 15, 2020
- Posts
- 8,439
I think #1 is a bigger issue than the Dems want it to be. Why does CA need to tax income at 13% (Top) and NY at 9% (Top) while FL and TX are at 0%? Granted FL has high property taxes, but a person can choose to some degree how much they want to pay by where they choose to live and the size house they choose to have regardless of income. But what does one get from the government in CA that they don't get in FL for their tax dollars, social issues aside.
In researching my taxes as a CA resident I found out something that I wasn’t aware of and doesn’t really impact me directly as a renter (probably why I wasn’t aware of it). There’s a decades old proposition where the state can’t raise property taxes past a certain amount (I think 2% per year) as long as you reside in the residence. So people who have lived in their house for decades have had very little increase in their property taxes. So they have to make up for the loss somehow with things like income tax.
I imagine that during sane times this might also keep people from selling their house and keeping the available inventory low. By sane times, I mean your house moderately increases in value…not near double in under a decade. That massive increase selling price might offset the tax increase on your next house, not so much with a moderate increase in value. Now also toss in high interest rates and people aren’t selling.