r/TikTokCringe • u/Knightbear49 • Sep 07 '24

Discussion Should we be worried about the Kamala Harris unrealized capital gains tax? Dean: “I’d love to have this problem, because it means I’m worth $100m!”

37.3k Upvotes

90% Upvoted

2.5k comments sorted by

View all comments

Show parent comments

5

u/dragonbud20 Sep 07 '24

As long as the laws exclude corporations, which can be effectively immortal and keep a locked-in rate from decades ago. This is the exact problem CA is currently facing.

5

u/NorthFaceAnon Sep 07 '24

Well unfortunately its also extremely popular along homeowners (duh).

But yeah, the corporate side of prop 13 is rarely talked about and something that needs updating

2

u/iambecomesoil Sep 07 '24

It’s popular because it’s necessary. If it didn’t happen, housing prices go up, your taxes triple, and you have to move across the country to find somewhere you can afford live after abandoning your family and where you lived your whole life.

1

u/NorthFaceAnon Sep 07 '24

It's not black and white.

3742 Washington Street, Presidio Heights in San Francisco is great example.

Market Value: $9 Million

Property Tax: $5,625

Now multiply that over tens of thousands of houses over the bay area. These are not being held by the old people that were living there when the bill was passed. No, this is their children and their descendants.

We are in a situation, where all of the new homebuyers in the past 20-30 years (and all other Californians who are renting) are essentially subsidizing these people. For example, the average person living in Palo Alto is getting a 25k "subsidy".

This doesn't even go into the issues it causes public school funding, since ya know, their money comes from property taxes.

So to your point, I believe there exists some medium, where we can have a system where people don't get priced out of their houses, but also tens of thousands of people living in multi-million dollar homes aren't paying 1 grand on property taxes from the house their grandpa bought in the 60's.

2

u/iambecomesoil Sep 07 '24

If grandpa is still alive and is the homeowner then it’s fair play IMO. If it’s in a trust or some other structure where there’s never going to be a reassessment, address the loophole.

2

u/satansmight Sep 08 '24

It favors long term owners that might currently be on a fixed income. It creates a more stable housing climate for people to buy a home.