Sunny and beautiful LA, also known as LaLa land, is a place known for celebrities, Hollywood and a highly diverse population. However, over the past decade, California (as a whole) has gone through some rough times. There is no question that millions of people around the world would jump at the chance to live in beautiful California—if only they could afford it.
Viggare Oltre
The state is still home to some of the best universities in the world, some of the most renowned eateries and is often hailed as the globe’s newest hub for tech and innovation. As they say: “As California goes, so does the nation.” This has certainly been the case whether it refers to trends in fashion, food, healthy eating, exercise habits, vernacular, movies, television and conservation.
However, there is also another side to the story. LA is experiencing rapid rates of gentrification as there is a huge and rapidly-increasing divide in wages between “1-percenters” and/or upper middle class and the middle to lower classes. Furthermore, the unemployment rate has gone up to 21.1 percent in cities like El Centro, which is the highest in the nation. Why? California has everything it needs to operate an uber-successful economy like it once enjoyed not too long ago. In fact, studies show that three times as many people move from Los Angeles to Houston.
thefbgames
Also, according to the Tax Foundation, California’s total state and local tax burden in 2010 ranks 4th, at a rate of 11.2 percent of per capita income compared to the national average of 9.9 percent. In addition, the U.S. Census shows that Californians are more likely to live in poverty than people in other states. California’s 2011 poverty rate was 16.6 percent, which increased from the year before. In California, 22 percent of children are living in poverty, which is also an increase from the year prior.
So, what is at the heart of the issue? Is it taxes? Cost of living? Something else? Despite being the world’s 9th largest economy, it can and has done a lot better. Vacationing in California for a week can cost the equivalent of a budget trip to a country in Europe. Much of the television and movie industry continues moving filming elsewhere with better tax credits such as North Carolina, Canada, Georgia and Europe. That represents a loss of millions of dollars, including potential jobs.
So, now, LA wants Airbnb hosts to pay hotel-grade taxes. Of course, there are two sides to this equation. On the one hand, you certainly should pay taxes if you are running any type of business. On the other hand, many people love Airbnb for the wide variety of budget-friendly and homey-feeling options. Quite possibly many of these LA Airbnb operators hope to attract more visitors, thereby bringing in more revenue to the county by offering rooms at lower rates than three through 5-star hotels. Tourism does and can bring in a lot of potential revenue. Then again, there are landlords who have evicted all of their tenants to make it all Airbnb, which is unfortunate for the renters. Also, is Airbnb a boon to tourism revenues within the county? So, the question remains—what is the solution?
By
