Tax reform impact on CA housing market (Nice: sales, 2015)

[CaliRestoration]

Originally Posted by majoun

Doubtful. California's changed a lot since 13. The people of the state nowadays never met a tax increase they don't like and the public unions are securely in control.

I do think 13 will be gone not long after Brown's gone but I don't think it'll be done the right way, i.e. cutting other taxes, or even putting a value cap on how much someone could benefit from 13.(I'd be fine with 13 only applying to properties under $400K, but I have a feeling it'll be all or nothing)

You think Democrat Politicians in CA would entertain off setting tax cuts to balance Prop 13's loss?

[Ultrarunner]

Originally Posted by majoun

Doubtful. California's changed a lot since 13. The people of the state nowadays never met a tax increase they don't like and the public unions are securely in control.

I do think 13 will be gone not long after Brown's gone but I don't think it'll be done the right way, i.e. cutting other taxes, or even putting a value cap on how much someone could benefit from 13.(I'd be fine with 13 only applying to properties under $400K, but I have a feeling it'll be all or nothing)

All Sacramento had to do was index the Home Owner Exemption but even this was too much to ask.

$7500 was very meaningful when a modest home could be bought for 12k

[expatCA]

Originally Posted by majoun

Doubtful. California's changed a lot since 13. The people of the state nowadays never met a tax increase they don't like and the public unions are securely in control.

I do think 13 will be gone not long after Brown's gone but I don't think it'll be done the right way, i.e. cutting other taxes, or even putting a value cap on how much someone could benefit from 13.(I'd be fine with 13 only applying to properties under $400K, but I have a feeling it'll be all or nothing)

Yep CA is more interested in money than people.

[majoun]

Originally Posted by CaliRestoration

You think Democrat Politicians in CA would entertain off setting tax cuts to balance Prop 13's loss?

Of course not.

Hence my comment about it not being done the right way.

The public sector unions have the state by the balls. Whatever they dictate is what goes in Sac these days. To the detriment of the state.

[CaliRestoration]

Originally Posted by majoun

Of course not.

Hence my comment about it not being done the right way.

The public sector unions have the state by the balls. Whatever they dictate is what goes in Sac these days. To the detriment of the state.

Yup.

Run away train to insolvency.

[SportyandMisty]

Originally Posted by majoun

Doubtful. California's changed a lot since 13. The people of the state nowadays never met a tax increase they don't like ...

Of course, because the federal government subsidizes the state tax increase.

Think of it this way: an extra dollar of state spending only costs the California taxpayer a bit over 60 cents because of the federal deductibility of state income taxes.

When this loophole is closed, an extra dollar of state spending will cost the California taxpayer one dollar. Presumably the State, faced with a large price increase for incremental services, will not raise expenditures as fast as they otherwise would.

[1AngryTaxPayer]

Originally Posted by SportyandMisty

Of course, because the federal government subsidizes the state tax increase.

Think of it this way: an extra dollar of state spending only costs the California taxpayer a bit over 60 cents because of the federal deductibility of state income taxes.

When this loophole is closed, an extra dollar of state spending will cost the California taxpayer one dollar. Presumably the State, faced with a large price increase for incremental services, will not raise expenditures as fast as they otherwise would.

Plus, Brown has kicked the can all through his gig, someone else's (OURS) problem now.

[eastcoastbias]

I think most of the real estate folks are making something out of nothing...


So under 500K the change with deduction doesn't matter. But the average home sale here is what 600-700K- I would assume these folks are putting something down, which should again gets you close to 500K and the deduction applies to everything.


Then you have to consider- If you are fishing in the 1M + home- why does a mortgage interest deduction matter- Is it truly enough to change your spending habit?

[ambient]

Originally Posted by TheFlats

This, the SALT deduction cap, and the increase of the 33% bracket to 35% will hit California and New York taxpayers harder than most other states. A little payback for the coastal elites I guess.

It's this exactly.

Let's call this tax bill what it is: an attempt by conservatives to stick it to blue states and benefit red states as payback for sanctuary cities, supporting Obamacare, not supporting Trump, etc.

[Finper]

Has anyone heard Browns position on this? Seems like he's laying low, as usual,. He's probably hoping it doesn't benefit Californians so he can rub it in Trumps face