Pennell v. City of San Jose, 485 U.S. 1 (1988)
- Citation
- Pennell v. City of San Jose, 485 U.S. 1 (1988)
- Parent Document
- Pennell v. City of San Jose, 485 U.S. 1 (1988)
- Jurisdiction
- United States (federal)
- Effective Date
- 1988-02-24
Other Sections in This Document (112)
- Pennell v. City of San Jose, 485 U.S. 1 (1988)
- Pennell v. City of San Jose, 485 U.S. 1 (1988)
- Pennell v. City of San Jose, 485 U.S. 1 (1988)
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- Pennell v. City of San Jose, 485 U.S. 1 (1988)
Full Text
1,547 charsThe politically attractive feature of regulation is not that it permits wealth transfers to be achieved that could not be achieved otherwise; but rather that it permits them to be achieved “off budget,” with relative invisibility and thus relative immunity from normal democratic processes. San Jose might, for example, have accomplished something like the result here by simply raising the real estate tax upon rental properties and using the additional revenues thus acquired to pay part of the rents of “hardship” tenants. It seems to me doubtful, however, whether the citizens of San Jose would allow funds in the municipal treasury, from wherever derived, to be distributed to a family of four with income as *23high as $32,400 a year — the generous maximum necessary to qualify automatically as a “hardship” tenant under the rental Ordinance.* The voters might well see other, more pressing, social priorities. And of course what $32,400-a-year renters can acquire through spurious “regulation,” other groups can acquire as well. Once the door is opened it is not unreasonable to expect price regulations requiring private businesses to give special discounts to senior citizens (no matter how affluent), or to students, the handicapped, or war veterans. Subsidies for these groups may well be a good idea, but because of the operation of the Takings Clause our governmental system has required them to be applied, in general, through the process of taxing and spending, where both economic effects and competing priorities are more evident.