Committee to unleash prosperity
In the last fifty years, California has done ONE thing right. In 1978, against the advice of almost all the politicians in BOTH parties, almost two-thirds of CA voters approved Howard Jarvis’s Proposition 13 – which constitutionally capped runaway property rate increases. This tax revolt launched the big California Miracle of the 1980s and 1990s. Of course, thanks to the highest income and sales taxes in the country, California’s economy has stalled out, and now there are renewed calls from Democrats to repeal Prop. 13.
A new study by Laffer Associates and CTUP shows the damage of property taxes. When property taxes rise, home values fall because the higher taxes get capitalized into the value of the house.