Radio Commentary
An editorial in the Sacramento
Bee some time ago provided a very provocative analysis of Proposition 13. It
is appropriate to raise those points again as our state finances continue to
present challenges.
Some 35 years ago Prop. 13 was
passed to curb runaway property taxes. But, the editorial stated, voters didn’t
know they also were weakening their ability to understand and control
government.
The
Bee’s editorial pointed out that as a control on property taxes, Prop. 13
has been a popular success. Voters stopped the inflation-driven rise in
property taxes that caused taxes on homes to double and redouble.
“But that success was obtained at a big price — in tax fairness, in
lost services and declining schools, in distortions in land use,” it said.
The Bee then asked a provocative
question: “If California set out to design its tax system anew, would even
Prop. 13’s most avid defenders choose to recreate what we have now?”
As a result of Prop. 13, The Bee said, big houses in some of the
wealthiest neighborhoods get tax bills lower than starter homes bought last
week by young families.
It showed that established firms pay lower taxes than upstart
competitors down the block. And more importantly, the law moved power away from
local communities to the state Capitol, which now controls how money is divided
among schools, counties, and cities.
It claimed this adds to cynicism
and discontent because communities no longer have input on funding for schools
or roads.
It’s an interesting perspective.
