California is a particularly perplexing example of this. The state, through ballot initiatives and legislative action, has stripped most taxing authority away from cities, leaving only a couple of coarse and nonadaptive approaches in the municipal toolbox. Cities respond by doing the one thing that brings in significant new revenue – more horizontal expansion – and the state supports that directly through massive levels of transportation subsidy. Then, given the environmental and social disaster of converting the open landscape to shoddy housing and, even worse, commercial development, as well
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