☆ Local leaders comment on Mahan's housing plan
San Jose Mayor Matt Mahan has released a multi-point housing plan as part of his campaign for governor. Local taxpayer advocate Tobin Gilman and FlashReport newsletter editor Jon Fleischman wonder if the plan illustrates the limits of California’s self-described “moderate” Democrat wing, or if it offers some interesting new ideas. An Opp Now exclusive.
John Fleischman, FlashReport editor:
“It is difficult to imagine any Democrat solving CA’s problems without first acknowledging how many of them were created by government itself.
"Unfortunately, it does not take long to read Mr. Mahan’s housing proposal to see that he is not prepared to take that step.
"While the plan contains a handful of novel ideas aimed at easing some of the symptoms of California’s housing crisis, it avoids confronting the deeper policy framework that produced the problem. Mr. Mahan shows little willingness to challenge the collectivist assumptions that have dominated California governance for decades — the belief that planners in Sacramento should decide where housing is built, how communities grow, and what economic tradeoffs Californians should accept.
"Instead, the proposal largely operates within that existing framework — offering what might best be described as conditional deregulation. This is not merely an omission; it is a choice to leave intact the policy framework that produced the crisis in the first place."--Jon Fleischman, FlashReport editor
Read more here.
Tobin gilman, taxpayer advocate; :
"There’s an interesting idea in the Mayor’s housing plan that I believe merits serious consideration. He’s proposing a two year holiday or moratorium on taxes that impede new infill housing construction and make homeownership less affordable. The Los Angeles Measure ULA property transfer tax (aka “mansion tax”) is cited in the plan as an example of the type of taxes that could be suspended.
“A holiday, or better yet permanent repeal of property transfer taxes such as the LA ordinance and San Jose’s Measure E could have a significant positive impact on increasing the supply of housing inventory on the market, and reducing the cost of home ownership. Lifting transfer taxes should not be limited to infill projects. Housing is expensive everywhere in the state.
“The timing of the mayor’s idea coincides with the two related issues on the city and state’s political agenda. The City of San Jose is in the early stages of its annual budget cycle. Regardless of whether or not the mayor’s tax holiday idea gains traction, the council will need to address the very real possibility that Measure E will be scaled back or repealed in the near future. Signature gathering for the “Save Prop 13” ballot initiative which restricts transfer taxes is approaching the finish line and it appears the measure will be going before California voters in November."--Tobin Gilman, Taxpayer Advocate
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