[ExI] lotta splainin to do

[spike at rainier66.com]

-----Original Message-----
From: extropy-chat <extropy-chat-bounces at lists.extropy.org> On Behalf Of BillK via extropy-chat
Sent: Wednesday, 16 November, 2022 2:35 AM
To: ExI chat list <extropy-chat at lists.extropy.org>
Cc: BillK <pharos at gmail.com>
Subject: Re: [ExI] lotta splainin to do

On Wed, 16 Nov 2022 at 05:25, spike jones via extropy-chat <extropy-chat at lists.extropy.org> wrote:
>
> Adrian the thought entertains me: we Californians, once considered so hip and mod, are likely to be the stodgy old dollar-clutchers, all because of how our state’s constitution is constructed.  They can’t easily change it, they can’t require a different currency for payment, property tax is set and perfectly predictable for the future, as inflation drives its real-value cost down even as the dollar-denominated price goes gradually up.
>
> Another entertaining aside, particularly for those of us who have owned a California home for a long time: the above tax-erosion feature makes California real estate an inherently inflation-resistant value-holder asset.  The already-absurd prices of these homes would rise ever higher because of the inflation-driven property-tax erosion feature.
>
> spike
> _______________________________________________


Stein's Law still applies. If California property tax can only be paid in rapidly devaluing dollars then California will have no 'real'
income to run the state. When faced with a situation that cannot continue, then it won't. Something will change. The Constitution will be changed or the state will cease to exist.

BillK

_______________________________________________


On the contrary BillK.  Reasoning: the California government still has revenue from three other main tax sources (sales, income and fuel) and would still have plenty of revenue from property tax, but that property tax burden would be disproportionately carried by newcomers to the state and those who move from one home to another.

In a fun twist, Prop 13 was originally designed to do exactly that: give a tax advantage to those who buy and stay in a house for many years.  Very common is the case where a Californian would like to move to another place in California and buy a similar home but cannot afford to reset their property tax.  We often hear (and I have said) can't move, prop thirteened.  I have been prop thirteened in place for many years.  I would like to move west in the valley, over toward Adrian's higher-end side, but can't swap straight across because of the tax bill.

But that too has its advantages, for people who are prop thirteened are more likely to stay and improve their homes and neighborhoods rather than move to nicer ones.  We see plenty of that right now as Tesla has created a lot of wealth in the area, which is plowed into home improvements rather than moving to nicer neighborhoods.  The gentrification is dramatic, and we don't even get accused of displacing minorities: it is mostly the same people here as before, just much more prosperous, assuming they bought into Tesla.  I didn't.  Damn.  But my neighbors did, and they are fat cats now.

Conclusion: this can continue and will.

spike