That’s what syndicated columnist Thomas Elias suggests in today’s Pasadena Star-News. That’s not how Mr. Elias puts it; rather, he states that increasing property taxes on businesses is the “obvious solution” to California’s budget problems.
It’s not.
The obvious solution is to cut the size of the state budget, to decrease government programs across-the-board, and change the mentality from the government as welfare state to government is the last resort. Our money does much better in our pockets (the taxpayers) than in the government’s.
According to the Tax Foundation’s business climate survey, California ranks 38th of the 50 states. Another survey ranks California 46 of the 50 states and the District of Columbia for small businesses.
What happens if property taxes increase? Rents increase. Business profits decrease. Other tax collections (income tax, payroll tax) decrease. Eventually, fewer businesses are in California, and the cycle continues.
So let’s increase property taxes and improve Nevada’s (and Arizona’s, Oregon’s, etc.) business climates.