Zigg

Stagflation and the Limits of Growth

+ governments (local,state,and federal) will likely be facing (worse) deficits... i'm not expecting capital gains/estate tax cuts to be renewed.
+ local governments will be in the unique position of increasing home valuations for tax purposes despite drops in real market pricing. certain local governments can only borrow to the extent of a % of real property valuations, so less valuation means less ability to borrow. if local government valuations drop, then the tax rate must proportionally increase to create the same stream of revenues, let alone increase to meet increased program/services costs.