Saturday, July 30, 2011

Dills Act causes sticky wages


Calaveras's shrinking property taxes have resulted in cuts to the sheriff's department and public-health services, as well as an effort to cut 10% of the county's budget for the coming year. The tax drop also has pitted the county assessor, who has lowered taxes by re-evaluating home prices, against the head of the county board of supervisors, who said the reassessments have been too aggressive.

"We're getting cremated" by the decline in property taxes, said Tom Tryon, chairman of the board of supervisors. WSJ

The problem is not flexible market pricing of houses, the problem is the past and present sticky wage problem caused by Jerry Brown the younger when he signed the Dills Act. The solutions are either repeal the act, outsource, or default.

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