distorted the tax code in ways that make it more difficult for people to buy homes in California. New buyers have to pay the annual property tax for not just their fair share of taxes, but also a portion of the taxes of the long timers.

This also affects in liquidity of the California housing market. The tax code incentivizes owners to hold properties longer. They can't sell and buy something else without drastically increasing their tax burden. Instead, they refinance the old place, rent it out, and then use the tax savings to help pay the taxes on their new place.

It's a ponzi scheme built into the tax code.