PoliticalGround Kamala wants U to pay for CA rents!

7/23/18 2:39 AM
1/1/01
Posts: 56805

California have skyrocketed over the past decade, thanks to the innumerable restrictions, taxes, and fees that the state imposes on new housing development. Now Sen. Kamala Harris (D-Calif.) wants the rest of the country to pay to fix this problem.

On Thursday, Harris, along with Sens. Richard Blumenthal (D-Conn.), Maggie Hasan (D–N.H.), and Diane Feinstein (D-Calif.), introduced the Rent Relief Act, which would provide refundable tax credits for tenants who spend more than 30 percent of their income on rent.

While doing little to address the root of the housing crunch—namely restrictions on supply—Harris' bill is undoubtably good politics in a state where 58 percent of renters pay more than a third of their income in rent. The bill has gotten glowing reviews from local politicians who are only too happy to deflect any blame they might share for the Golden State's housing woes.

7/23/18 2:40 AM
1/1/01
Posts: 56806

With the billions in tax subsidies allotted to billionaires through last year's tax changes, this legislation provides a refreshing contrast for working families who struggle daily," says Mayor Sam Liccardo of San Jose, where it's illegal to build multi-family housing in some 75 percent of the city.

"Senator Harris' legislation would help protect millions of families from losing their homes, by expanding benefits and opportunities for people who pay rent every month," declaresLos Angeles Mayor Eric Garcetti, who wholeheartedly endorsed development fees in Los Angeles that add between $5,616 and $10,530 to the costs of building an average-sized one-bedroom apartment.

Yet both the fairness and the economics of the proposal leave a lot to be desired, says Lynn Fisher, a housing policy expert with the American Enterprise Institute.

"We would be asking the whole United States to subsidize the bad behavior of some locales that are artificially pushing up rents by not allowing more building to happen," says Fisher.

In contrast to the rhetoric about helping hard-pressed renters, Fisher notes, Harris' plan would shower benefits on a staggering number of tenants, including relatively high-income ones. The Rent Relief Act would give tax credits for people earning as much as $100,000 a year and renting out apartments that cost up to 150 percent of an area's median fair market rent.

Americans' earning $25,000 or less would give a tax credit worth 100 percent of the portion of their rent that exceeds 30 percent threshold of their income. Those staying in government-subsidized housing—where rents are capped at 30 percent of a tenant's income—would get a tax credit worth a whole month's rent.

The costs of utilities would be included in rent costs. Because the tax credit is refundable, even those with no tax liability would still get a check.

7/23/18 2:41 AM
1/1/01
Posts: 56807

Absent any reforms that would make housing easier to build, Fisher suggests that all this would serve only to inflate costs. "If [Harris' bill] increases market demand and the supply doesn't expand with this, if supply can't expand, then simply what've you've done is to raise rents in many of these areas," Fisher tells Reason.

Low-income tenants could be made worse off still if these newly-inflated rents spawn higher security deposits and other move-in fees that would not be subsidized by Harris' legislation.

Harris' bill has little chance of passing a Republican-controlled Congress loathe to spend billions on the rents of liberal voters in big, blue cities. But her bill, like so many other proposed housing initiatives, illustrates how willing Democratic policy makers are to ignore the true drivers of housing costs while pushing expensive interventions that will only make the problem worse.

Edited: 7/23/18 2:45 AM
10/18/14
Posts: 6322

that is my future president

 

http://www.latimes.com/opinion/la-ol-enter-the-fray-the-rent-is-too-damn-high-but-sen-1532124021-htmlstory.html

 

A tax-credit program also could be enormously expensive. Harris’ bill was influenced by a similar proposal by the Terner Center for Housing Innovation at UC Berkeley, according to the Washington Post. The Terner Center’s proposal for a tax credit for low-income rent-burdened households would cost about $76 billion a year.

For comparison, the federal government spends about $22 billion a year on Section 8 housing vouchers, in which low-income families contribute a third of their income toward rent and the government covers the rest of the cost each month. 

7/23/18 2:46 AM
10/27/05
Posts: 35377

I can't say I really want to see Trump get a second term...but if this is what the Dem's run...well it's not going to end well.

7/23/18 3:07 AM
4/13/12
Posts: 21218

Shes number 6 or 7 on the list at this point.  I doubt they go with her.

like daniel tosh said, if you cant afford California, move to middle america, thats what its for.

7/23/18 3:22 AM
9/24/07
Posts: 2749

Commiefornia stupidity is contagious and it's spreading. I'm hoping trump's idiotic wall will block Commiefornia off from the rest of the nation. Just as soon as get the fuck outta here.

7/23/18 3:24 AM
3/1/10
Posts: 6784

Fuck outta here.

There's only ONE Kamala I will ever recognize.

7/23/18 4:10 AM
4/22/07
Posts: 63640

Haha trying to drag the rest of you into the mess they created here. Fuckin A

7/23/18 4:30 AM
11/3/05
Posts: 2330

I just moved to the Nevada side of Lake Tahoe from the Sacramento Area.  I’m saving almost 20k that I would have to pay in taxes in California. My house is over 3 times larger than the one I had before and it’s the same fucking price.  I honestly never thought I’d say I hate California but god damn it’s a fucked up place to live. 

7/23/18 6:55 AM
4/24/07
Posts: 35830
What a fucking idiot. Why would the rest of us pay for other peoples choice and mistakes. Get fucked!
7/23/18 7:42 AM
6/1/07
Posts: 17727
As the article points out, if Californians REALLY want cheaper rents, all they have to do is elect local politicians who will slash and burn existing municipal zoning regulations. They don't need a subsidy from the federal government. They just need to tell the NIMBY homeowners in their area to go fuck themselves.
7/23/18 7:46 AM
12/22/10
Posts: 7058

Sounds like a great plan to make rent prices increase.  "Oh we get a subsidy on our rent?  Ok let's move into a more expensive place."

7/23/18 7:52 AM
10/15/13
Posts: 23876
EFM -

Shes number 6 or 7 on the list at this point.  I doubt they go with her.

like daniel tosh said, if you cant afford California, move to middle america, thats what its for.

You really think middle america wants that?

7/23/18 8:07 AM
8/29/09
Posts: 11421

The best part, guess what that would do to the rent.

 

It would skyrocket even further.  If you subsidize something, you get more of it.  

 

Do you even basic economics, bro?

7/23/18 8:18 AM
7/13/09
Posts: 20349

Well they always say that California is so rich so they can pay for it with state taxes imo.  

7/23/18 8:26 AM
3/3/03
Posts: 31819

I think we all should pay.  After all, everyone should pay their fair share. 

Edited: 7/23/18 8:31 AM
11/9/10
Posts: 62143
Bad Monkey -

The best part, guess what that would do to the rent.

 

It would skyrocket even further.  If you subsidize something, you get more of it.  

 

Do you even basic economics, bro?

This

7/23/18 8:49 AM
5/13/17
Posts: 569
David@accu - What a fucking idiot. Why would the rest of us pay for other peoples choice and mistakes. Get fucked!

We already do....

7/23/18 8:52 AM
1/1/01
Posts: 5133
VTCO -

Fuck outta here.

There's only ONE Kamala I will ever recognize.

Did we just become friends? 

7/23/18 8:53 AM
5/13/17
Posts: 570
Cookie Monster -

I think we all should pay.  After all, everyone should pay their fair share. 

That was an Obama saying...

Who gets to determine what someone’s “fair share” is?

7/23/18 8:54 AM
11/9/10
Posts: 62145

A coworker of mine is a software engineer had an offer from a silicon valley tech company and took it. I said dude good luck. I know what he made here and what it is like to live in the bay area. He'd have to make 3 times more minimum for the same lifestyle.

7/23/18 9:41 AM
6/3/03
Posts: 95003
Bad Monkey -

The best part, guess what that would do to the rent.

 

It would skyrocket even further.  If you subsidize something, you get more of it.  

 

Do you even basic economics, bro?

This. 

7/23/18 9:42 AM
2/2/12
Posts: 3735
VTCO -

Fuck outta here.

There's only ONE Kamala I will ever recognize.

This. Sad he lost his legs to the diabeetus.

7/23/18 9:51 AM
1/11/06
Posts: 6110
nickgjj -

I just moved to the Nevada side of Lake Tahoe from the Sacramento Area.  I’m saving almost 20k that I would have to pay in taxes in California. My house is over 3 times larger than the one I had before and it’s the same fucking price.  I honestly never thought I’d say I hate California but god damn it’s a fucked up place to live. 

California is a great place to live. Many politicians there are out-right dumb shits though.