How do people in California deal with the high taxes? (Los Angeles: home, buyers)

[EdJS]

Originally Posted by yeahthatguy

Your parents didn't pay 1/2 million for a shack either and their property taxes aren't locked into such valuations.. neither did your parents graduate w/ mountains of debt (like a lot of people from my generation do).. Things change like i keep telling people but that provides no answer to those still viewing things in the past.. I don't know what to say to such commentary.

I'll have a paid off home before i hit 30 ... I dunno... I don't know about your parent's circumstances nor do I feel the way people from the past got along in California has anything to do w/ how people presently do or will in the future (the future being my major concern given that I am young and looking to start a family.. unlike your parents).

Well, I'm in my 40s and I managed to pay off my home mortgage in the Bay Area also. Just following from the example set by my parents.

[smdensbcs]

Originally Posted by user_id

huh? California has low property taxes, they are lower than Colorado.

Not in my experience. I pay @ $1,600/yr property taxes on a home assessed at $340K. When I lived in CA, I paid $3,500/yr property tax on a condo purchased for $350K.

I'm not a math major, but I'm thinking property tax is higher in CA, specifically for those who couldn't buy their homes back in the 1970's. For those on the "good end" of Prop 13 who pay next to no property tax on the million dollar homes, property taxes are indeed lower. For the "next generation" of home buyers, property taxes are much much higher. Its like a teeter-totter - Generation Prop 13 gave themselves low taxes by shifting the tax burden to the next generation of California buyers. So ... you either pay up or you move out of state.

[user_id]

Originally Posted by TVC15

Wow you among many others who think like you do and vote the way that you do is the reason California is sinking fast!

Really? Here I was thinking it was due to the fallout from the housing bubble and associated financial crisis.

[user_id]

Originally Posted by smdensbcs

Its like a teeter-totter - Generation Prop 13 gave themselves low taxes by shifting the tax burden to the next generation of California buyers. So ... you either pay up or you move out of state.

Yes, the burden is lower for residents that purchased years ago, but the property tax rate in California is one of the lowest in the country.

In terms of Colorado, when I was looking at the area I found rates of around 1.5% but that was just for a particular area, I assumed the whole state had similar rates. Colorado has a flat income tax of almost 5% though, that is more than what the vast majority of Californians pay (as a percentage of income) in income tax.

Anyhow, the taxes in California are pretty low (often lower than some "low tax states") for low/mid income folks. Everyone likes to focus on aggregate tax burdens, but this ignores how the taxes are distributed.

[sjnative]

What a bunch of suckers you guys are. The OP put exactly zero brain power into loaded-question his post and you guys fall all over yourselves to give rational, well-thought-out answers.

The OP probably hasn't even read any responses. No presence of mind to do so.

[yeahthatguy]

Originally Posted by sjnative

What a bunch of suckers you guys are. The OP put exactly zero brain power into loaded-question his post and you guys fall all over yourselves to give rational, well-thought-out answers.

The OP probably hasn't even read any responses. No presence of mind to do so.

I take every post seriously... Just like I do my trips to whole foods ..
Shiiiiiiii.....



http://www.stormmovie.net/blog/wp-content/uploads/2010/01/Success-Kid-INTERNET-SERIOUS-BUSINESS-300x300.jpg (broken link)

[mysticaltyger]

Originally Posted by JohnPaul

The Tax Foundation - Tax Research Areas > California

Thank you for the chart! It shows that the % of income paid toward tax in CA was lower in 2009 than it was in 1977. Although it's a high tax state, it ranks 6th of the 50 states, so it's not the highest.

That said, the state really wastes its tax money and has made way too many long term promises to state employees and to other programs (especially in the area of health care costs) that it can not afford to keep.

The biggest problem here isn't taxes but overly strict land use regulations that limit the housing supply and drive up housing costs for all.

[mysticaltyger]

Originally Posted by user_id

Deal with what? Taxes on lower and middle income folks (80+% of the state) are relatively low, it is only the top 10~20% that gets hit harder than most other states.

The sales & gasoline taxes are pretty high here, though. My county's sales tax is 9.25%. Other Bay Area counties are even higher.

Gas taxes are higher than in most other states, although this is one of the few taxes I think should be higher.

[mysticaltyger]

Originally Posted by yeahthatguy

I am not even going to waste my time pulling up facts and data to correct your false post... You're wrong. and that's that

Since you don't want to, I'll try to answer this. Socialism works well in small countries with low corruption. Norway & Sweden both fit this description. Greeces is small but has always been corrupt. Germany is somewhere in between the 2 extremes. Their biggest problem is the very low birth rate they've had for the last 20 or 30 years. They won't have enough young people to support all the old people in coming years.

The US is both too big and too corrupt for a full scale welfare state to work. We can't handle the programs we already have.

I'm sure this argument won't convince those who are ideologically committed to a Sweden style welfare state, but there it is. Political ideologies are a lot like religion. People believe in both regardless of the facts.

[mysticaltyger]

Originally Posted by yeahthatguy

Keeping w/ my animated gif theme.. and keeping things comical.. To answer your question :


The only thing I do in California is save and shelter my money... You're punished for 'enjoying' your money here...
Why do it? I do the free stuff.. it tides me over...
this is inline w/ your #3 .. :



I am just not stupid enough to spend here.. that's where one would make a big mistake...


First purchase when I get out of California :
> 2008/2009 BMW e90 M3 (cash)

--- Sorry California.. No $600-700 annual Car registration fee

> A nice 3/2.5 home built in year 2008+ (cash) to raise my family in...

($120-$145k)
--- Sorry California.. No 1/2 million dollars for some shack apartment ... and $5-6k in property taxes...
Me = money enjoyed .. shelter and security for my family .. still have money in the bank.


Will you throw a send away party for me user_id?

I get your point but that house is tacky.