Last month the Bloomberg “news service” distributed what purported to be a news story, trashing Prop 13. It was both intellectually dishonest, factually wrong and, well, pathetic.
Bloomberg “Editor” Mark Tannenbaum
California Diminished by Tax Revolt of 1978 Shows How U.S. Invites Decline
RIDER COMMENT: Remarkable. You publish a 2,000 word anti-Prop 13 “news” story without a single quote from a supporter of Prop 13. Not one! Apparently your reporter called the usual liberal California suspects to get the requisite quotes desired to validate your deeply flawed thesis.
I will be circulating this story via my blog and on Facebook as a classic example of the bias of your “news” service. People need to be clear that Billionaire Bloomberg has simply set up a Big Government propaganda mill pretending to be a news organization.
The only thing I liked about your article was that it didn’t make the slightest pretense at impartiality or objectivity. Such clumsy writing deters even the apologists for the liberal media from defending such blatantly biased “journalism.” Obviously it’s not a commentary, as the author is listed as a “reporter.”
BTW (not that you care), here’s a piece I put together last year that destroys your core hypothesis that Prop 13 starved CA governments for revenue. To see how our taxes compare with other states, visit my blog:
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A Defense of Proposition 13 Property Tax Revenues
by Richard Rider, Chairman, San Diego Tax Fighters
10 July, 2010
Blog: www.RiderBlog.Not.Long.com
When it comes to gathering sufficient property taxes, Prop 13 is no problem at all – except for profligate spenders. Look at the history of my San Diego County – a history which pretty much reflects the history of property taxes in the urban/suburban counties that hold over 90% of California’s population.
According to the SD County Tax Assessor, in 1977 – the year BEFORE Prop 13 took effect – our countywide property tax revenue was about $639 million. For this past 30 June concluding 2009-2010 fiscal year, our county assessor reports revenues of $4.596 BILLION. For every property tax dollar collected in 1977, the county this last year collected $7.20.
During that time frame, our county population has grown about 85%, and inflation has gone up about 260%. Hence property tax revenues today aresubstantially higher than the bloated PRE-Prop 13 year, even after adjusting for inflation and population growth.
For 2008, California was ranked 14th highest in per capita property taxes (including commercial) – the only major tax where we are not in the worst ten states. But CA property taxes per home were the 10th highest in the nation that year.
http://www.taxfoundation.org/taxdata/show/251.html and http://www.taxfoundation.org/taxdata/show/1913.html
To see how CA ranks against the other states on various taxes and other economic factors, go to: www.RiderBlog.NotLong.com and read the latest updated version of my fact sheet “Breaking Bad – CA vs. the other states.”
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It turns out that, under Prop 13, property tax revenue is FAR more stable than our other forms of tax revenue. Income tax revenue is plunging, and sales tax revenue is dropping.
But property tax revenue seldom goes down AT ALL. Since the year Prop 13 passed, San Diego County property tax revenue has ALWAYS gone up – everyyear – until this 2009-10 fiscal year.
The SD County Assessor reports that real estate property tax revenue for the fiscal year ending June 30, 2010 is down – but only 1.0%. This in the 4th year of California’s real estate meltdown. The year before, real estate property tax revenue was actually up 4.1%. Not one person in a thousand knows this – the press has not (yet) covered these amazing facts.
Revenue is up because Prop 13 has the little-known added benefit of smoothing out real estate property tax revenue from year to year. Most properties this year (generally those purchased prior to 2003) had their property tax go up 2%. Add to that the resales, property improvements and new structures (which establish new tax assessment levels), and the revenue stayed rather constant in the teeth of our economic downturn.
Consider what happens without Prop 13 protection: In the real estate boom years from 1998 through 2005, property taxes would have SOARED. (Even WITH the Prop 13 limitations, San Diego County property tax revenue collection during this period STILL rose 111%.) But then in the last four years, dropping property values would have caused a dramatic plummet in property tax revenues – revenues that governments would now be hooked on – just like we see with our volatile sales taxes, and especially with our erratic income tax revenues.
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November 20th, 2011 at 5:06 pm
Duckeee!
The mega rich propose scrapping Prop. 13 and adding sales taxes to services….ala….dentists, accountants, doctors, dog groomers, finger nail technicians, gardeners, car mechanics and any thing that moves, breathes….etc.
And all for the “children”.
So called conservative radio and tv preach …if you tax the rich they will not hire you!!!! You will be rich one day….you will not want to be taxed. It is a spending problem….have faith our side will get our country in order….
15 trillion dollar debt later……….hello!!!!
November 20th, 2011 at 6:39 pm
CA already has the highest state sales tax rate in the nation. 7.25% (as of 1 July – does not include local sales taxes).
http://www.taxfoundation.org/files/bp60.pdf Table #15
Big spenders would LOVE to extend that tax to services.
It’s not like we’re undertaxed in CA. Consider:
California has the 3rd worst state income tax in the nation. 9.3% tax bracket starts at $46,766 for people filing as individuals. 10.3% tax starts at $1,000,000. http://www.taxfoundation.org/files/bp59_es.pdf
California corporate income tax rate (8.84%) is the highest west of the Mississippi (our economic competitors) except for Alaska.
http://www.taxfoundation.org/files/bp59.pdf Table #8 – we are 8th highest nationwide.
California’s 2011 Business Tax Climate ranks 2nd worst in the nation – close behind New York state.
http://www.taxfoundation.org/news/show/26806.html
Fourth highest capital gains tax 9.3% http://www.thereibrain.com/realestate-blog/capital-gains-tax-rates-state-by-state/109/
CA has the 2nd highest gas tax (averaging 67.5 cents/gallon) in the nation (October, 2011). Nat’l average 48.8 cents.
http://www.api.org/statistics/fueltaxes/
(also CA has the highest diesel tax – 76.5 cents/gallon. Nat’l average 53.9 cents)
For a more complete list of such comparisons of CA with other states, go to the CA fact sheet on my blog — updated twice a month.
http://open.salon.com/blog/richard_rider/2011/11/20/breaking_bad_ca_vs_the_other_states_rev_111811
November 20th, 2011 at 7:40 pm
The rich through media and psuedo philantrophy have disguised their true intentions…
Three rich guys are about to spend ten million dollars to convince over taxed productive Californians that society is decaying and only through more spending will Utopia be a reality….
Have we been had!