I'm very sensitive to this at the moment, because "wealthy" is used as a term when people talk about CA income taxes, which can be frustrating since in reality, much of the wealth in California is enormously under taxed (thanks to Prop 13), which basically amounts to the continuing siphoning of wealth from the young to the old.
Just got my tax bill and I see I'm paying a percentage of my home value for things like school districts, etc.
Why I as a relatively new resident who has not benefited from these services yet is paying a disproportionate percentage of the taxes by a massive amount compared to people who have benefited from these services for decades while paying a pittance due to their locked prop 13 tax rates is beyond infuriating.
Doubly so when those long time owners have captured absolutely massive value through collecting rents and massive asset appreciation.
I'm all for paying my fair share for services in my community. This is not my fair share. At the very least it should be equal if not based on how long people have lived there.
http://www.taxpolicycenter.org/model-estimates/individual-in...
For someone earning $500,000 a year, a $5,000 tax break is a $5,000 tax break, it isn't going to do much of anything to their behavior.
Considering that mortgages usually require a down payment, you could also make the argument that the benefit overwhelmingly accrues to the financially stable. People that can't get the down payment together aren't going to be stabilized by a benefit they can't access.