ctr (or is it “Almighty Financial Genius,” as you’ve implied to us “financially ignorant/illiterate” types in other threads?),
Here you go:
“The result of Proposition 13’s nearly 60 percent cut in California’s
local property taxes is illustrated in Figure One. In 1977-78, the last fiscal year before the imposition of
Proposition 13, nearly 28 percent of state and local general revenue generated in the state came from
property taxation. California’s property tax reliance was 26 percent greater than the reliance exhibited in
all states in 1977-78.
1
By 2005-06, the most recent fiscal year for which data is available, California’s
reliance on property taxation as a source of state and local general revenue had fallen to less than 13
percent. This was 24 percent below the property tax reliance occurring throughout the rest of the United
States in 2005-06.” [pg. 2]
…What this indicates, and what many observers have
repeatedly pointed out, is that the changes in California’s revenue structure that began with Proposition 13
has resulted in a persistent structural deficit in this century that, despite repeated calls to do otherwise,
was not dealt with during the economic recovery the state experienced between 2003 and mid 2007. [pg. 13]
…
[Because of Prop 13, California has had to shift revenue sources to personal income and corporate taxes, which leads to much more volatile swings in revenue, and this causes…]
California’s economic situation continued to decline in March and April of 2008. Given the
state’s heavy reliance on personal income taxes, analysts expected the two-year deficit value to rise. By
mid April, many said it was back to an amount similar to what it was before the one-time cuts made in the
special session of the legislature. In late April of 2008, Governor Schwarzenegger shocked many by
publicly stating that he believed the current two-year deficit figure to be over $20 billion. The exact
figure will not be known until after a May revise that accounts for the actual amount of personal and
corporate income taxes collected by the state. [pg. 15]
Also, you might try inform yourself, Mr. Financial Genius, about where California’s revenue goes. California’s pension costs comprise ~3-5% of the state’s budget. This is not what’s “sucking the lifeblood” out of this state or country.
The loss of revenues that resulted from Prop 13 (even if you only count second homes/investments, commercial properties, and corporate-owned land, leaving Prop 13 intact for a single primary residence) totally dwarfs the problems caused by those “awful union goons” and their pensions.
Stop regurgitating right-wing talking points and really inform yourself using actual facts and data.
