What is wrong with California?
California’s ballot measures have received a lot of media attention in the last few months. Some want to blame the state’s problems on the initiative and referendum process. Paul Jacob disagrees.
In his Common Sense commentary, Prop 13 Declared Innocent, he explains why.
Prop 13 Declared Innocent.
You hear it all the time: California’s in such a mess “because of Proposition 13.”
You probably wonder how that initiative, passed way back in the ‘70s, could be so key.
Well, it was the first of a long line of voter-instigated tax limitation measures, and it made politicians ache with frustration. Politicians LIKE spending money; Proposition 13 limited, somewhat, their greedy quest for ever more money to spend.
But did it really unbalance California fiscal policy?
Chris Reed, writing in the San Diego Union-Tribune, explains how nutty this charge really is:
[S]ince shortly after Prop. 13’s adoption, property tax revenue increased by 579 percent. That is not a typo. It went up 579 percent.
During the same span, population went from 24 million to 38 million — an increase of 58 percent.
Reed checked his numbers against the inflation rate, and found that “property tax revenue has increased by more than triple the combined rate of inflation and population growth.”
Read the full article at Common Sense.
What do you think?
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