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a major advantage Texas has over California is that its property taxes are higher and income taxes are lower
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Reihan Salam
@reihan
What seems on the surface to be a novel affordability initiative is a property tax regime that has helped make California incredibly inhospitable to the young, newcomers, aspiring homeowners, etc. x.com/judgeglock/sta…
David Watson 🥑
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You can imagine Texas’s property tax is a LVT on the land and a VAT on the improvement’s housing services. Given some assumptions, it’s 2% on the land and ~40% on the services which is arguably too high relative to the 8.25% sales tax and why people complain so much
That approach is actually incredibly anti-family and was a key factor in my departure from Dallas. Sales tax dependent state governments are a scourge.
CA property tax rates are lower but the property values are higher, much higher. You can't just compare tax rates unless you include property values.
And yet it has been causing some big shortfalls and issues as development slows. The Sales and Property taxes really need to be higher to be sustainable
Worth noting that this means the tax burden on the middle class is higher in TX than CA — which I’m fine with but I hope a lot of libertarian/conservative types understand what they’re arguing for
That’s mainly an advantage for wealthier people rather than poorer ones, because poorer people still have to pay implicitly pay high property taxes and relatively high sales taxes too.
Guess what’s higher in California… median household income… it’s about 25% higher in Cali… know what else is better… the weather and the quality of life. You can have Texas, Cali-fornie is the place for me…
Almost makes up for literally everything else in which CA has the advantage. Have fun paying low faxes in a state where either the heat or AC is always broken
There's an old saw about how Texas is only worth moving to if you make more than $120K a year if you only look at quality of life by amount of tax paid
It’s interesting how if you just look at those two examples you’d think that rent prices are extremely negatively correlated with property taxes
Are California's big edges only *perfect weather *interia with existing tech/vc networks + 0 non-competes? I mean that's not bad! But is there something else?