[quote=no_such_reality][quote=CA renter][quote=The-Shoveler]There may be a small short term one or so year blip on the inventory and price as CAR suggests, but I think in the long run it would not make much difference.
Also I think the adverse affects on rents and the economy ect.. would be greater than expected.[/quote]
Or not. Again, why in the world are we subsidizing the profits of RE investors?[/quote]
Because frankly, that’s just spin BS. Not taxing more isn’t subsidizing.[/quote]
Giving a tax break to “investors” is subsidizing them, period. They are NOT paying market tax rates. Other people are paying higher taxes in order to give this subsidy to RE investors; that’s why so many taxes and fees have increased since Prop 13 passed. PROP 13 IS A SUBSIDY.
Let me spell it out for you:
“Definition of ‘Subsidy’
A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy is usually given to remove some type of burden and is often considered to be in the interest of the public.”
“The effect of Proposition 13 on mobility varies widely depending on the size of the subsidy, with the largest effects occurring in coastal California cities where the increase in property values has been greatest.”
