Who Pays in the City of Los Angeles

CITY HALL HUSTLE-The special treatment afforded by the City of Los Angeles to the rich and powerful has become outrageous. These ongoing practices effectively constitute welfare for the rich that is paid for by the poor - a trend which cannot be sustained. 

For example, the City continually subsidizes the billionaire real estate developers who seek to make large profits with the development of major commercial properties. If the development of these properties is justified there is no need for tax subsidies to encourage such development. In essence the taxpayers subsidize either poor decisions or excessive development.  Socialized risk and privatized profits. 

The fact that the recipients of these tax benefits are large political contributors to government officials is not a coincidence.  Politicians are bought for pennies on the dollar; contributions exchanged for tax credits and grants; gifts to wealthy patrons courtesy of City Hall.  

The City of Los Angeles had asked for an increase in the sales tax in order to generate approximately $4.5 billion for the repair of potholes in the street. Such tax would be disproportionately borne by the low and middle-income taxpayers within the city.  Many of those asked to pay for road repairs do not even drive. Those who increase the traffic, large developers, should bear the cost of road repair. This form of regressive taxation, that forces those with smaller incomes to pay a higher percentage of those taxes than those with higher incomes, is an insult and a travesty. 

The City of Los Angeles recently withdrew its plan for a ballot initiative to increase the sales tax. It was clear from the public outcry that such proposed sales tax increase had little chance of actually passing. Don't be worried; your elected officials will attempt to find another way to tax the poor for the benefit of the rich. 

The foreclosure crisis of 2008 and 2009 has created thousands of homes, which are now owned by large banks. These homes are not maintained and are prime factors in keeping property values low in the areas where foreclosures have been highest. This exacerbates the inability to refinance underwater mortgages because property values do not increase at the same rate as other parts of the City. According to the police, the failure to maintain these homes creates a haven for crime. 

These homes are owned by the big banks that provide large contributions to the political campaigns of those who are supposed be protecting the public. Although there are numerous laws that require these homes be properly maintained who is going to enforce the laws? The city has turned a blind eye.

 

The City maintains a large workforce of meter maids to protect against your dangerous failure to put quarters in the parking meter.   What sort of workforce is provided to protect the communities from unmaintained homes that are owned by large banks that stole them from the mortgage holders that they had duped into bad mortgages. Forget to put fifty cents in the meter and it costs you $65. The penalty is more than 100 times the cost of the infraction.  This is more than a full day’s pay for a person earning minimum wage. 

Refuse to maintain the homes that you have repossessed and you're not even fined  $65. If it costs $500 to clean and maintain a home, would the City fine a bank $50,000 (100 times the cost)?  We all know the answer is no.  There is much rhetoric by the City but little action when it comes to the big bank’s indiscretions. You pay and the banks don't.  This is injustice at its finest and speaks volumes about the government of the City of Los Angeles. 

Failure to pay three parking tickets could result in your car being towed and the expense of those tickets continues to increase until they are doubled. While you could lose your car for failing to put enough quarters in the parking meter, not one bank has lost a house for failing to properly maintain it as required by law. 

This is an example of the concept of reverse "Robin Hood". The concept is a simple one. You steal from the poor to give to the rich. What sort of perverse mind comes up with these ideas? Your local elected official in the City of Los Angeles. The depths to which they will sink for political contributions know no limit. 

(Clinton Galloway is the author of fascinating book “Anatomy of a Hustle: Cable Comes to South Central LA”. This is the second of a series on power, influence and corruption in government. He is also a CityWatch contributor and can be  reached here. Mr. Galloway’s views are his own.) 

 -cw

 

 

 

 

 

CityWatch

Vol 12 Issue 49

Pub: June 17, 2014