One of the biggest reasons middle-class families leave California each year is the unaffordable cost of housing. The Democratic Party, which controls Los Angeles, tried to address this problem by passing a “mansion tax” that would fund “affordable housing” projects. But like everything else Democrats do in California, the plan backfired, causing residential building construction to plummet, thus raising housing prices even further.
Sold to voters as a tax on “mansions,” what the measure really does is impose an extra 4% levy on almost all properties sold between $5 million and $10 million and a 5.5% tax at properties sold for $10 million. These include not just large homes in Bel Air, but also gas stations, commercial real estate, condominiums, and apartment complexes.
