City of Los Angeles instantly confiscates 4% to 5.5% of the value of homes worth over 5 million dollars -- And it doesn't end there!

 

 

3/28/2023 -- Wealthy Westside Los Angeles liberals' unwaivering support of democrats has finally come home to roost! LA city's 'mansion tax' goes into effect on April 1, 2023. Homes selling for 5 to 10 million dollars get hit with an extra 4% tax. Homes selling for over 10 million dollars get hit with a 5.5% tax. Here are a few noteworthy victims...

 

Tom Hanks (Pacific Palisades) - Will instantly lose $1,430,000 and probably more.

Barbara Streisand (Malibu) - Will instantly lose $1,100,000 and probably more.

Demi Lovato (Studio City) - Will instantly lose $5,500,000 and probably more.

Jimmy Kimmel (Hollywood Hills) - Will instantly lose $376,000 and probably more.

 

Imagine if your local government decided that they want to seize 5.5% of the value of your bank account, calling it a 'tax', and your less-wealthy neighbors all ganged up and agreed at the polls when the city deceptively worded the ballot measure as "FUNDING FOR AFFORDABLE HOUSING AND TENANT ASSISTANCE." Who could say no to such a noble cause? Ha ha! Of course the voters agreed! That's exactly what has happened to homeowners within the vast Los Angeles city area with homes valued at over 5 million dollars. This 'tax' is no different than a lien being placed on 4% - 5.5% of the value of your home. You can sell your home today and the city will take your money now, or the city will gladly wait patiently as their stake in your property grows in value like an interest-earning savings account. Either way, the city wins and you lose!

 

But, it doesn't end there. Put yourself in the shoes of a home buyer considering buying your 10 million dollar home that resides within the 'mansion tax' city. Once they buy your home they will inherit a brand new 5.5% lien of their own, and one day when they sell, their buyer will be pondering the same tax. It's simple economics. This reduces the value of your home by yet another 5.5%! Why should anyone buy your home when there is no such 'mansion tax' in other cities like Beverly Hills, West Hollywood, Newport Beach, Calabasas, Santa Clarita, etc? In fairness, this will drive up prices in these other areas, and this will in turn drive up prices in Los Angeles city to some degree, to help ease buyers' cringe over at least some of that 5.5% tax. However, there will be those who get fed up and leave Los Angeles, as well as those who decide not to even bother moving to Los Angeles. This will drive prices down.

 

And so, from the perspective of 'mansion' sellers, this is certainly more than a 5.5% financial hit -- It's perhaps about an 8% to 10% reduction in the value of your home.

 

PROPERTIES UNDER $5 MILLION DO NOT LIVE IN AN ALTERNATE UNIVERSE: This mansion tax will also spill over to all other housing under 5 million. Put yourself in the shoes of someone considering buying just a 2 to 5 million dollar home. Unless this 5 million dollar line in the sand is raised, these homeowners will eventually be faced with this tax grab.

 

RENTERS DO NOT LIVE IN AN ALTERNATE UNIVERSE: You might erroneously think, I'll just rent instead. That won't work either. This new wealth grab is simply going to be baked into your rent. And again, it will spill over to all price ranges. Some renters will settle for living in cheaper, under 5 million dollar properties. This will drive up the prices of those homes. Even the cheapest rental property rates will go up to some degree, taking advantage of any inordinate rate disparity versus more expensive rental properties. Basic economics.

 

SUPPLY & DEMAND DISRUPTED: Making matters even worse, developers will shy away from building properties in or near the 5 million dollar price range. This reduces supply. This causes all property prices to go up.

 

HOW DID WE GET HERE? Democrats want to fundamentally change America into something resembling the Soviet Union, with people living in pillbox apartments and using public transportation. Single family homes must go. They haven't been implementing socialism all at once, but rather in increments so that you won't notice. It began by appointing left-wing judges who ruled that homeless people cannot be criminally punished for sleeping outside if no alternatives exist (free housing). Providing free housing to droves of homeless people presents a massive financial problem. Furthermore, local Los Angeles politicians have essentially neutralized the police so that they will not enforce other laws that would scare off the homeless -- using drugs in public, urinating in public, sleeping on the sidewalks during business hours, etc. Los Angeles police are so underfunded that they don't have time to arrest homeless people. Even if they had time and were allowed to enforce these laws, there is no room in the jails to hold any more people because democrats refuse to build new jails and prisons. And so, the homeless problem just gets worse and worse. The only solution to meet the aforementioned court requirement to take homeless off the streets is to give them a place to live (for free). How do you pay for that? Tax the wealthy! But, you need voter approval to do that. Fear not! The democrats planned this out years ago when they turned Los Angeles into a sanctuary for poor illegal immigrants and by driving the middle class out to Texas and Florida. The voter rolls are full of people who could care less about raising taxes on multi-million dollar homes. If they had basic knowlege about economics, maybe they would have voted differently.

 

In conclusion, the voters of Los Angeles will never repeal this wealth tax. Unless the courts (run by leftist judges) overturn it, this wealth grab is finalized. Socialism is here to stay. Your only solution is to move out of LA, preferably completely out of state.

 

 

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