Your Share of the State Debt
posted by TTB at
8:51 AM
Tuesday, November 30, 2010
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2 Comments:
California has a cash flow problem, not a debt problem.
Also, "your share" is a bit misleading. The debt does not follow you if you move to another state, nor does is it subtracted from your estate if you die.
"The debt does not follow you if you move to another state, nor does is it subtracted from your estate if you die."
True enough, but the tax rate needed to service the debt can have a big impact on the value of ones' house or business which one sells in order to leave.
Taxes in general in a city like Milwaukee impact businesses and property taxes directly impact house values. Houses there tend to sell for about half replacement value, and have for at least half a century.
Most of those taxes are for operations, but part are for debt service, and as government debt rises, and interest rates go back up, so will the portion of taxes devoted to debt service.
That will reducethe value of businesses and houses, so leaving can cost a lot.
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