🚀 go-pugleaf

In <30kvb9$f8m@crl3.crl.com> dk@crl.com (David A. Kaye) writes:

>Steven M. Scharf (scharf@jedi.nsc.com) wrote:
>: Yesterday the creditors that dropped the bond rating put the fiscal mess
>: squarely on proposition 13. The reason is obvious. While in most states
>: the property tax revenue rose as property values rose, this did not
>: happen in CA.
>
>An article in today's SF Examiner confirms exactly what you say.  The bond
>raters in New York say that Prop 13 is ruining California's credit rating. 
>Stands to reason.  The corporations which normally would pay their fair
>share on their buildings are locked into low property taxes.  There was a
>big squawk when Bank of America was involved in a leveraging arrangement. 
>There was a question as to whether B of A's property had changed hands
>when their buildings were spun off into a separate company.  B of A has a 
>HUGE amount of property, something on the order of 3,000 separate 
>properties just in California alone.  I believe the court ruled it was 
>not sold and therefore would NOT be reassessed at market rates.  So, B of 
>A, like any other company which has held onto property is paying about 
>1/10th the property taxes they should be.  
>
>And in addition, local governments give tax credits on TOP of this?  No 
>wonder California is broke.
>


Lets see, the fact that the Defense Industry has been leaving California has
nothing to do with our fiscal problems. The fact that business in general is
leaving California, due to over regulation and no tax incentives to stay, has
nothing to do with it. The fact that California has one of the largest
welfare populations has nothing to do with it. The fact that more people are
leaving California then moving to California has nothing to do with our
fiscal problems. 
 Yes, I can see that Prop 13 is the only thing that has caused the states
fiscal problems.

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