Dan Walter’s Anti-Prop 13 theory baseless article response

October 27, 2011

Dan Walters:
Subject: “California’s below-average property tax rate is more than offset by its above average property values”. Your Anti-Prop 13 theory baseless.
Good article. However, a ‘hold on’ attitude is going to get worse as baby boomers as well as seniors are not going to sell.
Our ‘Prop 13’ piece that appeared in the Mercury News Aug 13, 2008 explains the ‘hold problem’ that is getting worse in the neighborhoods with a large elderly population. The elimination of capital gains might yield a boom. When it comes to taxes, the 1970 takeaway is that taxes on capital should always be leveraged and dramatically cutting elderly people’s capital gains tax could serve the lowliest citizens. It would certainly help schools.
Our efforts turned into SJR-20 resolution 57, which we felt was inadequate tying it to moving to a rest home: http://www.leginfo.ca.gov/cgi-bin/postquery?bill_number=sjr_20&sess=PREV&house=B&author=alquist. Elaine Alquist thought our proposals were good but changed it due to apparent political pressure. We could not support it.
Your articles are always worth reading. Any suggestions would be helpful.

James Hall