LA’s mansion tax backfires (Oregon should learn)

By Taxpayers Association of Oregon Foundation,

This fascinating chart is from the Wall Street Journal about how housing permits fell after Los Angeles passed a big tax on property owners to fund housing programs.

Los Angeles passed a 4% gross value tax on properties over $5 million.  It was meant to soak mansion owners but also ended up hitting apartment buildings.   As a result, builders stopped building apartments.   The property tax to create more housing just created less housing.

This is te same with Oregon when the Metro area passed both a property tax to fund housing and an income/business tax to fund homeless and only served to increase home prices and homelessness since it passed.   A complete waste of a billion dollars in new taxes.