Brown for Governor, Poisner for Governor and Meg Whitman - can they say the unpopular truth?

 
This tractor is used to place rocks and sand to prevent cliff erosion.

I write this on March 4th 2010. 

Around the state (California) there are demonstrations asking "Restore the funds cut from education." I  feel the demonstrations neglect to speak to much larger public and political problem: 
The public dialogue will not contemplate enacting higher taxes.
How will the three candidates for governor engage with the following unpopular truths?
  • Revenue to the California state government needs to be substantially increased.
Revenue must be increased to fund a modern society that does provide public education, health support, social security and other services and benefits.  

The problem with raising the basic tax rate for all is how to do it fairly and evenly. I  favor raising the sales tax rate to 11%, and then doing adjustments and credits at the level of the state income tax.

  • Real estate in California over a 40 to 50 year period has become over valued by 40-50%. 

The entire state (indeed the entire nation) is caught in this unpleasant state of affairs.  Nobody enjoys the vanished "wealth effect" that ended when property price appreciation stalled out in 2007-2009. 


The over valuation of real estate (I refer mainly to homes) is the root of a cascade of problems. 



One of  these problems is the large amount of mortgage debt. The  nation hasn't  yet started to have a  dialogue about  how to get off of the hook of enormous mortgages that often require two working parent incomes.

From another point of view,  critics describe the mortagage  industry as about twice as big as it should be. 

Another aspect of the over valuation is: Young adults starting a family can't afford a home. See "The coming collapse of the middle class" below.
 


Resource:



Henry_George advocate of land value taxation

YouTube - The Coming Collapse of the Middle Class






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