where do our current taxes go? CA as a state has one of the highest (or the highest?) tax burden in US. The schools are still awful and we have to rely on prison populations for fire fighting? WTF?
This is why many people think California has high taxes. Because they move here, get hit with a high income tax rate, then get hit with a standard property tax rate if they buy a home.
Meanwhile, my parents pay around 1k/year in property taxes on their million dollar home.
If you were wealthy in CA > 25 years ago, you're likely not paying much at all in taxes. We instead rely on high sales tax and income tax.
If you own property and don’t pay (or pay very few) income taxes that means you probably wouldn’t be able to keep your house if your property tax base is reset.
We've already discussed income tax in this thread, but the parent to your post was talking about "if you were rich > 25 years ago" .. implying the person is probably retired, and isn't paying the highest income tax rates. House paid off, don't need to draw a lot from your retirement, low property taxes.
1. https://taxfoundation.org/state-and-local-sales-tax-rates-20...
Those successful property investors never have to lift a finger or pay a dime
https://en.wikipedia.org/wiki/European_Union_value_added_tax...
Of course, the area under the curve matters, too. I have no insight into what effective tax rates people are paying in 50% top-bracket tax countries in Europe.
As a double-income no kids couple in Silicon Valley, I think we're still paying something like 18% effective tax rate federally.
But to be honest this is one of those things where ignorance is bliss
CA has a higher tax burden than average, but nowhere near the highest in the US. Illinois, Iowa, and Ohio all have a higher per capita tax burden than California - among others.
[0] http://www.ebudget.ca.gov/budget/2020-21EN/#/BudgetSummary