Comments on: How home prices helped kill the first tech boom http://blogs.reuters.com/great-debate/2011/09/13/how-home-prices-helped-kill-the-first-tech-boom/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: aligatorhardt http://blogs.reuters.com/great-debate/2011/09/13/how-home-prices-helped-kill-the-first-tech-boom/#comment-37642 Sat, 17 Sep 2011 13:01:08 +0000 http://blogs.reuters.com/great-debate/?p=10412#comment-37642 I do not see the sense in high property tax as a deterrent to speculation. Only a speculation tax can affect speculation, otherwise, the rest of homeowners would be subsidizing speculative activities. My complain with property tax is that it is too high, and gets annual increases even though home prices are falling. A person is required to individually sue for adjustment and bear the burden to prove that home value is less, which of course requires new appraisals and also money wasted on legal fees. The price fluctuations are widespread, not individual, so across the board adjustments would be appropriate. The property owners are being victimized by the greed of local government in the present system.

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By: aligatorhardt http://blogs.reuters.com/great-debate/2011/09/13/how-home-prices-helped-kill-the-first-tech-boom/#comment-37641 Sat, 17 Sep 2011 12:52:13 +0000 http://blogs.reuters.com/great-debate/?p=10412#comment-37641 As a person who worked in construction and a homeowner and seller, I could see that the home prices were artificially inflated. The annual inflation of home value had been fairly consistent for years, but then prices were going up so fast that one could hardly get a quote on a new house for more than a few months period. The cost of construction materials did not show a reason for the higher home prices, and earnings for construction workers were also flat. It seemed to me that speculation and large investor groups doing land grabs was the main force behind the home price inflation and property value inflation. The bursting of the bubble was inevitable, the only question was when.

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By: thebigchicken http://blogs.reuters.com/great-debate/2011/09/13/how-home-prices-helped-kill-the-first-tech-boom/#comment-37600 Thu, 15 Sep 2011 18:17:59 +0000 http://blogs.reuters.com/great-debate/?p=10412#comment-37600 robb, property taxes act as a brake on house price inflation. Property taxes should be higher and income taxes lower to encourage productive work and discourage speculation on real estate.

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By: robb1 http://blogs.reuters.com/great-debate/2011/09/13/how-home-prices-helped-kill-the-first-tech-boom/#comment-37491 Tue, 13 Sep 2011 20:21:23 +0000 http://blogs.reuters.com/great-debate/?p=10412#comment-37491 Indeed, the focus shifted from productive work to real estate speculation.

The hi-tech jobs were exported to Asia and the mirage of an unstoppable real estate appreciation is vanishing and represents a burden for our ability to compete globally.

California property taxes alone represent a deterrent for new engineers to immigrate in the state eroding his capacity to compete.

A corporate tax threshold of 15% +10% in California is stuck at $ 50K for over 25years. Inflation adjusted should be $ 100K.

For how many more reasons is too expensive to do business in California now?

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