During his "My Take," Friday "Varney & Co." host Stuart Varney discussed the impact of California's "mansion tax" on property sales or transfers over $5 million, arguing the bill is triggering a "rush to sell" and is another way to bash the rich in a state incapable of getting almost anything done.
STUART VARNEY: It is Friday, March 24th.
In Los Angeles, if you have a $5 million home that you want to sell. Hurry up. Because on April 1st, just 8 days away, a so-called "mansion tax" will be imposed.
Not just on houses, but commercial property and multifamily housing. On sales over $5 million, it's a 4% tax, $10 million, 5.5%.
'MILLION DOLLAR LISTING' STAR WARNS MANSION TAX WILL DELIVER ‘HARDEST HIT’ TO MARKET SINCE 2007
Inevitably, there's a rush to sell now, to escape the tax. Star realtor, Josh Altman, who was on this program last week, is offering a million-dollar bonus to any agent who can bring in a sale for a $28 million Bel Air mansion by April 1st.
A rush to sell, yes, and a rush to buy at what may be bargain prices. Bash the rich. Way to go California.
Los Angeles will use whatever money is raised, to build affordable housing for the homeless. Dream on.
In 2016 the city brought in $1.6 billion with a bond issue. They thought that would build 12,000 units. They managed to finish around 4,000, but the price went straight up. Some of these "affordable" units now cost $800,000.
WEALTHY CALIFORNIANS COULD FACE BILLIONS IN NEW TAXES AFTER MIDTERM ELECTIONS
How on earth can you possibly expect to build anything affordable in California, when regulations add at least 40% to the cost of building anything?
California can't get out of its own way. A generation of one-party rule has left the state incapable of doing almost anything. Remember the $100 billion California bullet train? Where's that?
Wait there's more. The clown car rolls on. After a three-day school outage, 420,000 students (74% Hispanic, 20% Black) return to the classroom today. More loss of learning for kids who have already lost so much.
The Democrat Governor Gavin Newsom, will sign a "price gouging" bill. He says, "for decades oil companies have gotten away with ripping off California families while making record profits."
Roll your eyes folks, the governor of a failing state wants to be the President of the United States.