Schwarzenegger's Failure in California

In a letter to the Wall Street Journal, the financier Warren Buffett spoke of three houses he owns, two in Laguna Beach in southern California and one in Omaha, Nebraska. He bought his first Laguna Beach property in the early 1970s. In 2003, it had a market value of about $4 million, and because of the limitation of Proposition 13, carried taxes of only $2,264. The second Laguna house, located just in back of the first one, was purchased in the mid-1990s and its market value in 2003 was approximately $2 million. The second house, Buffett wrote, "simply because I bought it later than the first, carried taxes of $12,002 in 2003 ... these figures mean that the tax rate on the second house — same neighborhood, same owner, same ability to pay — is roughly 10 times the rate on the first house." The famed financer said his Omaha... [read full story]                    

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