California voters approved Proposition 13 to rein in property taxes that had doubled in 10 years. More than three decades later, that rebellion has mortgaged the state’s future, saddling it with the nation’s highest debt and lowest credit rating. The measure led to reductions that dropped per-student school spending from seventh to 29th nationally, prompted cities to pursue sprawling retail development to compensate for lost revenue and… cut support for its public universities by 18 percent to $4.5 billion this year… Proposition 13 created disparities in tax payments that amaze Larry Stone, the assessor in Santa Clara County, home to Silicon Valley and companies such as Apple Inc. and Intel Corp… The measure also created loopholes that businesses exploit to avoid paying their fair share.

Read full article [here].
by Christopher Palmeri, Bloomberg News.

Posted: October 18th, 2011, by: admin. Categories: . Awaiting Comments.