A cautionary tale about tax cuts

“Quality of services in many cases declined. It’s clear, for example, that there was a shift in fire protection away from professional fire departments and toward volunteer fire departments in some parts of the state.

It hurt the schools. School finance has continued to, of course, increase in California as it has elsewhere in the US, but California used to be at the top in terms of quality of education in primary and secondary education and in terms of school spending. And now it’s definitely not.

It has hurt the quality of infrastructure — potholes in the roads, response times of first responders. It has shifted the state tax structure onto income taxes, which means that the tax system in California is really swingy — in a boom, a lot of money might flow into the state’s coffers, and in a recession, the state budget really suffers. During the financial crisis, this meant that local governments that could no longer rely on a lot of property tax revenue were especially vulnerable to bankruptcy.

It has also created all kinds of unfairness — new unfairness, rather unlike the old system. Now you might actually pay a lot more tax than somebody else in your neighborhood who has an identical home worth the same amount of money, just because they bought their home earlier than you did. And they might agree that that’s unfair, but they might not vote to change it because it’s an unfairness that allows them to stay in their home.”

https://www.vox.com/podcasts/485716/tax-cuts-history-california-prop-13-property-tax?utm_campaign=dhfacebook&utm_content=%3Cmedia_url%3E&utm_medium=social&utm_source=facebook&fbclid=IwY2xjawRMbrNleHRuA2FlbQIxMQBzcnRjBmFwcF9pZBAyMjIwMzkxNzg4MjAwODkyAAEenSnmg0Uqf6qGxDIVlnpo3E6LM94egO9GzsntxcHxzIWtcz-9HVePNYBgPRE_aem_dbXl8hV9j1M29lc4E8Pqpg

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