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Comment by carty76ers | Hacker News Reader

The counter argument is: If a widowed elderly woman lives in a 900 sqft home bought in 1963, how is it her fault that the world went crazy and values it at $1,200,000+ today? Have you seen a 1963 house? They’re a fire hazard not worth 1.2M.. And yet, you want her owe tax on that crazy value, yet she is stuck with a static retirement income? Where should she go? Idaho?

I’m for increasing tax on income earners, but not on retired elderly who just want to die in peace. The younger generation could move to other geographies much easier

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> The counter argument is: If a widowed elderly woman…

Proposition 13 does not target widowed elderly women; it only benefits property owners regardless of whether they are widowed elderly women. For example, widowed elderly renters are harmed instead of helped. If we wanted an entitlement for low-income and elderly people, we should have made one that targeted these groups instead of the one that only incidentally helps low-income people (https://www.law.cornell.edu/supct/html/90-1912.ZD.html)

The old lady made $1m in unearned value in her house. She can use a part of that value to pay taxes on the increase, live and die in the house, and her heirs still make free money.

It’s also unrealized. Maybe just tax on the sale or transfer.

Honestly the whole situation is a nightmare. I feel like whenever I think of a “solution” I just find problems with it.

> unrealized

She can borrow against it and easily afford property taxes for the rest of her life.

And then die me not pay back loans? Or what if there is a market downturn and now the lenders are stuck holding it? Maybe they don’t lend I’m the first place?

Lots of unknowns here.

Yes: Buy. Borrow. Die. It's how the wealthy skip taxes in the US.

Or, if she is seriously so destitute and financially illiterate that this is all too hard there are targeted programs in California for her: https://www.sco.ca.gov/ardtax_prop_tax_postponement.html

The fact is that Prop 13 is just a handout to successful land speculators at the expense of everyone else.

Unless she resorts to a reverse mortgage, it's surprisingly difficult to refi when you have no earned income. I have over 1M equity in my house but can't access it while unemployed (according to lenders I've contacted, including credit unions with whom I have 30+-year ties.)

Let's say property taxes are 2%. She's got a $1M house so thats $20k per year for the rest of her life. Is it really that hard to borrow $200k against a $1M house?

It sounds like keeping housing prices stable rather than expecting/encouraging housing prices to skyrocket indefinitely at everyone else's expense would solve both problems, no?

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