Not only are your property taxes subsidized (assuming prices have risen more than 2% per year since you’ve bought it), but the interest rate on your mortgage is also subsidized if it’s a govt-backed mortgage.
[/quote]
the subsidy argument is hogwash. If there was a subsidy, it would already have been reflected in the net present value of the house at time of purchase.
with my property taxes, I feel like I’m subsidizing the breeders and their kids. Not that I mind… but the subsidy point can be taken to a circular argument.
The law is what it is… there is no subsidy unless one is specifically designed to a provide a subsidy to a group. government backed mortgages is a subsidy to the housing industry or finance industry, yes. But it’s not a subsidy to homebuyers.[/quote]
Once again…
[quote=CA renter]
As for the subsidy:
“Definition of ‘Subsidy’
A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction.”
tax subsidy
noun [C or U] TAX, GOVERNMENT, ECONOMICS
› a reduction in tax in order to reduce the cost of producing food, a product, etc. and to help to keep its price low:
[Which Prop 13 largely fails to do, BTW, since most LLs charge market rent, irrespective of the subsidies they receive.]
Prop 13 is absolutely the very essence of a tax subsidy to those who least need it (people who own more property than they can use for themselves). It is unconscionable that we are providing these subsidies when the state and local governments are so strapped.[/quote]
