Helping poor retired old ladies keep their 10,000sf Mansions in Pacific Heights
http://www.redfin.com/CA/San-Francisco/2420-Pacific-Ave-94115/home/1958734
Property Tax
Taxable Value
Land $153,379
Additions $101,291
Total $254,670
Tax (2009) $3,114
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Berkeley, CA
Mortgage is only $44k /mo, and that's with 20% down and a 4% rate...
The property tax on this is roughly 0.5% of mortgage payment...
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First, I do have a home in the Bay Area and pay approximately the same taxes on my 1000sf home in a working class neighborhood. I appreciate having been shielded on the way up from insane property tax increases caused by morons overpaying for their homes.
That said, I still think prop 13 is a joke, since it applies to all property, including mansions in Pacific Heights owned by family trusts as well as commercial real estate owned by corporations and section 8 properties owned by slumlords alike.
That wealthy families are paying less in property taxes on their trophy properties than the average working class family living in a small ranch home in a working class neighborhood with poor schools is a joke.
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John Bailo says
Be careful for what you wish for - my property taxes are nearly 15% of the mortgage payment (originally 80% LTV). If I move out and rent it, the tax nearly triples. Reassessment is at the whim of the local tax office. I have to write a letter every few years protesting the increase and only had it changed one time. Most people don't bother and pay increasingly more to live in their house year after year. Years ago my neighbor was paying 1/4 of what I was paying according to the public records. I wrote a letter and mine wasn't lowered - but his was increased the next year to what mine was.
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46 male
Menlo Park, CA
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Tude says
Yup, that was the whole point of Prop 13: to quietly let the rich evade taxes while claiming it's to benefit the working class.
And it worked like a charm! No one noticed that most of the benefits went to people who didn't need it at all.
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Fairfax, VA
seaside says
Michigan has a simlar thing to this
http://www.michigan.gov/taxes/0,1607,7-238-43535-207881--,00.html
you get your taxed value and then it can never go up by more then 5% or inflation every year
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I don't want be a pessimist but I sure want to point this out. If you look at history from longer time perspective. Does anyone on this forum thinks excessive taxation(I don't see a way out this mess without tax increases) will be a problem for USA?
http://en.wikipedia.org/wiki/Decline_of_the_Roman_Empire#Theories_of_a_fall.2C_decline.2C_transition_and_continuity
.... the empire was forced to raise taxes frequently causing inflation to skyrocket. This in turn caused the major economic stress that others attribute as one of the causes for Rome's decline.
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47 male
Lafayette, CA
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shrekgrinch says
So you're against the free market then.
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shrekgrinch says
You know, I get so flippin sick of people saying this. My husband is employed by a working class person who runs the business because he loves it, and pays my husband a good wage because he appreciates his work. He probably has less money than we do, and often pays himself less than he pays my husband.
I know lots of people who don't work for rich people. Believe it or not there are people out there, lots of them, running small businesses not to get rich or even make a lot of money, many of them employ people.
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47 male
Lafayette, CA
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Tude says
I agree 100%. This is yet another lie created to defraud people into voting for their own destruction.
A company like WalMart couldn't POSSIBLY do business in a country like France with high taxes, strong unions, universal health care, and a guaranteed 5 weeks of vacation for every worker.
Right Shrek? Isn't that right Shrek?? Never gonna be any WalMarts in France is there Shrek..................
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Pasadena, CA
iwog says
Wait a minute, it's not fair to ask him about Walmart in France since the Faux News Channel pundits haven't schooled him on that.
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shrekgrinch says
The french do not consider a lack of walmarts a serious deficit in their culture.
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47 male
Lafayette, CA
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shrekgrinch says
You still don't get it.
Your entire premise is that a company can't possibly be profitable in our "socialist" environment. (high minimum wages, high taxes, etc) Therefore I gave you an example of a large corporation that is not only profitable in such an environment, but actually thriving and expanding and creating more jobs.
Therefore pretty much everything you believe and that you've asserted here is a lie because you can't even BEGIN to explain why WalMart is actually making money in France!!!!!
I can think of no other country that "punishes the rich" more than France does, and yet NOTHING you predict is happening. Care to explain why?
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Bellingham, WA
iwog says
I can, in 6 simple words:
All. Taxes. Come. Out. of. Rents.
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shrekgrinch says
You have a serious sense of humor deficit.
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shrekgrinch says
Have you ever been to France other than the "It's Tuesday, this is Paris" typical American with 2 weeks vacation a year stroke job? I've spent a lot of time there, have traveled extensively there, and had the great opportunity to live there almost a year.The French are very happy with their economy thank you very much. Unemployment has hovered around 10% since the 1950's. It is the expected norm. France has done such a shitty job with job creation that it is the fifth largest economy in the world for christ sake. You have absolutely no clue what you are talking about.
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San Francisco, CA
iwog says
This is no magic, Walmart operates in the same environment as its competitors in France.
High minimum wages and high taxes apply to Walmart competitors as well. Therefore, as long as Walmart can obtain goods cheaper than its competition, they will be able to maintain lower prices in their stores, attract customers and grow business in France.
It would be interesting to compare Walmart's hiring policies in USA vs France. I think it is reasonable to assume that they hire more people in the USA.
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47 male
Lafayette, CA
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Shrek is speaking from pure ignorance.
First he asserts that high costs will drive business out of the country. When presented with an example of WalMart actually expanding INTO such a country, he has no explanation.
Shrek, I don't know how you missed the fact that my one example is a DIRECT contradiction of everything you're arguing here. HOW can WalMart possibly be expanding into France if ANYTHING you've said is true?
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iwog says
Are you comparing a retail vs non-retail business ? Of course high costs drive business into low cost regions. Every business leader will tell you so, and its everyday reality.
Symantec 10K filing, a common statement amoung many.
http://investor.symantec.com/phoenix.zhtml?c=89422&p=irol-sec&seccat01enhanced.1_rs=31&seccat01enhanced.1_rc=10&x=36,30&y=5,8
"We reduced our cost structure in order to improve operational efficiencies across our business. Some of the actions included: carefully managing our headcount costs; outsourcing certain back office functions; consolidating facilities; relocating certain research and development functions to lower cost locations; and reducing travel and entertainment expenses and other discretionary expenses."
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47 male
Lafayette, CA
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thomas.wong1986 says
LOL......I suggest you stop reading corporate excuses for shareholders and start reading books on economics.
If high costs drive business into low cost regions, then why isn't WalMart losing money expanding into one of the highest cost regions on the world?
Answer: The assertion is false. High minimum wages don't make WalMart unprofitable. Unions don't make WalMart unprofitable. 5 weeks mandatory vacation doesn't make Walmart unprofitable. High taxes don't make WalMart unmprofitable.
It's ALL CRAP! American corporations are driving down wages and outsourcing because they can. Period.
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Last I checked WalMart is in Bentonville, Arkansas. They have retail and distribution channels across many states and international, just like any other retail outfit. Reason Walmart can thirve is they have an automated distribution system, few if any can match globaly.
Your point is what ?
Now make the same argument with deflationary industries like the Semiconductor business.
Why did we lose our mfg to the Philippines and Tiger Nations when the Japanese cut their prices less than US mfg costs ? Or Autos, Steel, and many other now Japanese dominated industries.
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shrekgrinch says
So cut old people a break. We give them SS on our dime, why not a break on property taxes for a primary residence? Or at least let the taxes be a lien to be paid on sale or death.
Instead, now a huge percentage of long-held properties under prop 13 are commercial properties. And residential rentals. If I bought bought my place from my landlord I'd have to pay 10X the taxes. Or for that matter if I wanted to be landlord I am at an extreme disadvantage because of the preferential tax treatment long term landlords receive.
Please explain who is being protected here? These prop 13 parasites are no better that unions that try to stick it to junior members, and yet "conservatives" defend them tooth and nail.
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OK Lets do away with Prop 13 altogether! Now what ?
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Bellingham, WA
thomas.wong1986 says
To break Prop 13 we don't even have to repeal it.
The easiest way would be to tax rents. That's not ad valorem so Prop 13 doesn't apply.
A second way would be replace the existing ad valorem taxes with a land title tax -- charged on land area at a specified millage set by localities. Not ad valorem either even though it closely resembles the L V T : )
With the added revenues we could restore the two state programs that gave low-income seniors and disabled a break (outright subsidies and deferred taxes that are rolled into liens).
Win-win for everyone. Except rentiers.
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Atherton, CA
Rather than come up with more ways to get the profligate CA government to raise taxes "on the other guy"... have any of the geniuses here stopped to question why the fuck we don't ask the government to cut back on all the shit they spend the money on?
I don't raise my kids' allowance this week just because she blew most of last week's money on overpriced cotton candy that her school was peddling. I told her she needs to understand how to spend responsibly before she is given control over a bigger pile of money. Why do we not expect the government to display the same self-restraint before allowing it to shake us down for more?
It is not about prop 13 - you may think that it only affects the other guy. But it perpetuates and strengthens a government beast that will come after you on some other pretext next month.
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Oakland, CA
I raised my kid's allowance as he needed more books for school, as bus fares went up, as he joined after school sports activities and got move involved in his community. For example.
Geeze, what is with the whole "government beast" bit? Sounds a whole lot like a Timothy McVeigh rant. I don't know about you, but this is America for Gods sake. I'm proud of America, most of it anyway. I'm proud of the Social Security system, the National Highway System. National Parks. Howzabout the US Army? Or the National Guard? The CDC?
"Government beast" my ass. Just because it needs fixing, doesn't mean it Satan. I want to say "Go fuck yourself and move to Mexico", but this is America, and we are all in this together. Don't be so cray cray and go do something constructive. Volunteer somewhere or something.
native94027 says
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Atherton, CA
Landru3000 says
Perhaps you didn't understand what I said. I don't believe raising the allowance is a good thing if the person (or the CA government, in this case) has shown a tendency to spend its current allowance unwisely. Finding new revenue sources to suck from isn't really the answer.
It has nothing to do with being proud of america, or fucking oneself or moving to Mexico or volunteering, since none of those things have anything to do with the matter.
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47 male
Lafayette, CA
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Your hatred for government is well documented, but it is totally without justification. You've simply been brainwashed to believe that government is bad without actually being able to make an argument why government is bad.
This is why such an analysis is totally absent from all of your posts.
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Pasadena, CA
I just hit the Ignore button on Shrek, ah...now I can breathe without hearing a Tea Bagger rant in every thread.
It feels as good as when I programmed my "Favorites" button on my TV remote to no longer have to flip through the Faux Republican News Channel pundits and all their yelling, slant, and rants.
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Kent, WA
John Bailo's website
native94027 says
That would be a good question to ask...once Property Taxes are normalized and made equitable again.
At that point, people will be taxed in accordance with what they own...which is the only fair way.
It is at that point that those with the biggest stake -- the largest asset holders -- will start to scream about government spending.
Right now, Government is used to tax the poor and middle classes and funnel it up to the large asset holders.
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Kent, WA
John Bailo's website
shrekgrinch says
You call yourself a "conservative" but you're afraid of the Free Market.
Not possible.
If someone owns something that should be valued at "Fair Use" and taxed as such, then that's the way it is.
People have to make adjustments accordingly.
Quite frankly, I think fair and value based Property Taxes is one of the few sane and fair ways of normalizing the economy.
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Davis, CA
shrekgrinch says
Yes, this is the actualilty of "starve the beast". It's not "I want a minimal government", that's just the cover story for the real operation. SABOTAGE ALL GOVERNMENT ending in Mad Max is the goal, because conservatives want to live out their Randist fantasies of being all bootstrappy and able to come out on top in a caveman world.
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Pasadena, CA
John Bailo says
That's how silly the Tea Baggers are, since they want to do the following:
1. Slash the Deficit
2. Make the George Bush Tax Cuts Permanent (thereby increasing the deficit by billions that they just "slashed" in #1 above)
Not Possible (except to a Tea Bagger).
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Mark_LA says
Sure.
And democrats want to:
1. Increase or at least keep the existing spending
2. Not increase taxes, or at least by nowhere near to close the gap with spending
Continue borrowing to make ends meet, I guess forever.
Not possible, expect to O'babies.
Which is why I am not voting in this election, again.
I will when there is a serious candidate (D, R, and likely neither) who, like Churchill, offers us only "sweat, blood, and tears".
Because taxes (or other means of govt. revenue collection) have to go WAY up or spending on NEARLY EVERYTHING (incl. all three "sacred cows" of SS, Med., and DoD) has to be slashed WAY down,
and likely both.
Pretty soon, I'm afraid.
Perhaps that is impossible in a true democracy over the long term, which is why all mature democracies
(US, Europe, Japan) end up in the same debt trap, regardless of all the major political and social differences.
Then democracy would have to go.
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Yes--by all means don't vote. That's definitely the adult way to handle it.
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Poway, CA
middleman's website
edited: I promised myself I'd be a nicer person.
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Atherton, CA
Many are voting anti-incumbent in this election. And some people may vote with their money on Dec 07.
http://pogoprinciple.wordpress.com/2010/11/01/bank-run-being-organized-across-europe-on-december-7-2010/
Not advocating this, just making an observation.
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shrekgrinch says
Absolutely, you don't even know how much.
I myself have, joining the All-Union Leninist Communist Youth Organization of USSR at age 15,
raised my hand and solemnly swore in the presence of my friends and classmates to fight for the great ideals of communism to the last drop of my blood and last minute of my live.
And I did it so well that, by age 17, I already was a deputy secretary of the class cell of the same for ideology. Hope you didn't get a heart attack, did you?
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Bellingham, WA
shrekgrinch says
I mostly agree with this. It was living in Japan and seeing my city taxes be 15%, national tax at 5%, and national pension at 10% that opened my eyes. That seemed about right.
We expend so much energy at the national level and almost nothing at the state level. This is stupid, especially for a state like California which has the GDP of Canada, Russia, or India.
I do think we need to "spread the wealth around" which means state-first and local second. Otherwise you just get favelas and enclaves eventually.
Speaking of which, I think Norway does a pretty good job running their economy, much better than your desired minarchy will ever be able to achieve. But this comes from having a rational and industrious people perhaps and not the economic system itself. I think there's validity to the argument that people living Up North have to be more conscientious and socialistic communitarians, given their winter climate.
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Bellingham, WA
Or was that tolerant part just a bunch of bullshit as well?
Being tolerant of passive-aggressive butthurtedness is difficult, but I'm trying.
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Bellingham, WA
I play the ball, not the man.