patrick.net

I'm puzzled as to why any Republicans would stay in CA.

SFace says

We'll see what the Dems have planned and what a fillibuster-less control will mean.

Oh I'm sorry you were out of town and must have missed 2009 - 2010 in Washington. Picture that, but it will be Swartz's fault.

The viable business model for California will become third world black market.

The official apparatus will be increasingly extorting visible soft business targets with identifiable addresses and assets who have tried to play by the rules, attacking them and sucking them dry.

The shifting black market elements below the tax and regulate radar will have more incentives to thrive. Get ready to change your address, swap out the cell phones, and turn over your part time cash only employees every two months and you might stand a chance.

Better not stand still for too long, you will wind up in the sights.

zzyzzx says

I'm puzzled as to why any Republicans would stay in CA.

The weather is great. Other than that waiting for the state collapse is entertaining.

I hadn't been following this at all. Good to hear!

However Prop 13 is untouchable IMO. Unfortunately.

zzyzzx says

I'm puzzled as to why any Republicans would stay in CA.

Republicans are not emotionally and mentally small children, they just find it useful to pretend they are sometimes.

will the Dems stop the Cal HSR train to nowhere? If not, who's gonna pay for it?
Just two simple questions.

no.. and it will cost 65 Billion .. up to 116 Billion billed to the tax payers.

http://en.wikipedia.org/wiki/California_High-Speed_Rail

SFace says

You're such a lame controller, any idiot would be able to figure out how to book something this simple.

not anymore.. cant accrue anything unless services have been billed.

in prior decades it was possible.. since the base (purchase price) stayed the same..
and inflation can be estimated its not a issue.

so now the base (market vale) will fluctuate wildly...

and given SOX and tight Auditors... for public companies.. Forget it.. Cant do it.

The auditors will assume your creating a reserve pulling down earnings in year one and inflating earnings in year 2.

SFace says

Where the f__K do you work as your qualifications are embarassing? Is this what you tell your auditor? No, can't, impossible?

you of all people should realize the risk of using reserve accounts to manipulate earnings between periods.

Prior to Prop 13, market values used to asses commercial properties swung wildly and it wasnt considered accurate. Up 10-15% in one year and down 10-15% the next.

with Prop 13, you have predictabe locked in values year over year which allows for reserving the tax bill. No issue.

Go back to pre-Prop 13, If the market values, used by the assessors office, on a leased building swings wildly, as we have seen it makes it difficult to drive any predictability in your business outlook and compliance. Its a mess !

Bap33 says

will the Dems stop the Cal HSR train to nowhere? If not, who's gonna pay for it?

The "wealthy" assuming the economic recovery continues.

If 10.3% - 13.3% aren't high enough state tax rates we'll just have another election and make them higher.

I wonder how many more taxes are on the way now...
We need more money for public safety right??? (aka unions - cops/fire)

thomaswong.1986 says

Property Tax is a pass through to tenant. If commercial property values skyrocket, so do prop tax... then the catch up billing and additional expenses incurred.

This is BS argument.

Original Prop 13 said if taxes kept low, that rents would obviously decrease. Since it's just a "pass through" as you say. "We save money, so do you, ne?"

However, rents tracked inflation. There was no "savings" to renters. Property holders simply pocketed the difference.

Since rents are dictated by inelastic REAL ability to pay, the only effect of Prop. 13 repeal should be trimming the profits of fatcat landlords and underpayers like Disney. Boohoo!

http://research.stlouisfed.org/fred2/graph/?g=cAX

Vicente says

Since rents are dictated by inelastic REAL ability to pay, the only effect of Prop. 13 repeal should be trimming the profits of fatcat landlords

You mean like:

CaptainShuddup says

SFace says

We'll see what the Dems have planned and what a fillibuster-less control will mean.

Oh I'm sorry you were out of town and must have missed 2009 - 2010 in Washington. Picture that, but it will be Swartz's fault.

To me this is frightening. They already made laws virtually guaranteeing no Republican opposition. They control how and who gets elected, who gets onto the ballots, and now they can do whatever they wish to give their special interests money out of our pockets.

These wealthy libs own this state, and they own it because they take our money constantly. So, I'm ready this time, they start taxing and I'll start protesting voting for a massive recall election.

FortWayne says

"throwing hard working people over board because they can't afford to pay the rising costs."

land owners are not hard working at all. Their land value comes from all the work everybody else is doing in their community.

Their land value literally rises in their sleep.

http://www.wealthandwant.com/themes/Wealth_from_Land_Appreciation.html

Bellingham Bill says

FortWayne says

"throwing hard working people over board because they can't afford to pay the rising costs."

land owners are not hard working at all. Their land value comes from all the work everybody else is doing in their community.

Their land value literally rises in their sleep.

http://www.wealthandwant.com/themes/Wealth_from_Land_Appreciation.html

That's wealthy land owners, what about everyone else who will get hit by taxes? Your average hard working families, small businesses, every single homeowner, every single business. What about retirees or simply poor who live on fixed income and cant afford a penny of increased taxes.

Doubling property taxes for everyone now would put a huge economic burden on everyone in this state.

zzyzzx says

Vicente says

Since rents are dictated by inelastic REAL ability to pay, the only effect of Prop. 13 repeal should be trimming the profits of fatcat landlords

You mean like:

Yes exactly!

FortWayne says

Doubling property taxes for everyone now would put a huge economic burden on everyone in this state.

yeah, let's not do that, actually. Just the commercial operators sucking money from the actually productive people of the state.

We could also throw in luxury taxes on premium real estate, stuff that goes for over five million an acre or whatever.

Bellingham Bill says

yeah, let's not do that, actually. Just the commercial operators sucking money from the actually productive people of the state.

Exactly why Prop 13 will NEVER be repealed. Too many entrenched businesses getting too much slop from that trough.

People talk about businesses fleeing the state over a little tax on their profits. They overlook however industries & RE groups have owned businesses for 20+ years are enjoying HUGE tax advantages due to Prop. 13 versus their younger competitors. Even if the original owners do decide to retire and move to Arizona, it can be structured so sale to new owners never changes the tax basis.