Why California loves taxes, stock bubbles, and housing bubbles: State and county assessed property values up to $4.918 trillion, up 6 percent from last year.
ByThe state of California has a tax structure that is inherently in favor of stock and asset bubbles. The biggest sources of income tax for the state include personal income tax, corporate tax, and sales tax. These sources are completely dependent on the health of the overall economy and can turn on a dime. Compare this to a state like Texas that relies much more heavily on property taxes that tend to remain more stable even in recessionary times. But when times are good, the state of course manages a way to spend the money that is coming in. The current housing market is pushing out the middle class but money is flowing into central coffers so all is good. The Board of Equalization shows the big jump in real estate values across the state. Total state and county assessed property values are up to $4.918 trillion, up 6 percent from last year. By the time it all implodes, “I’ll be gone and you’ll be gone.” How stable are the tax sources for California?…
