Skip to comments.A “Third Income Tax” To Fund Public Education?
Posted on 05/08/2011 7:24:54 AM PDT by Kaslin
Unemployment is rising, the federal government is broke, and so are many of the states. Now more than ever America needs its various governments to exercise restraint, and to scale-back on spending.
And in the midst of this environment a stunning proposal has emerged in the nearly insolvent state of California: a third income tax.
The proposal is actually worse than a mere additional income tax and Ill explain this in a moment. First lets look at the other two income taxes.
For the record, if youre an American and you work and you earn personal income, your U.S. federal government imposes a tax on that income (most of us are well acquainted with this). And workers in forty-three of our fifty states also have their personal income taxed even further by their state government (the states of Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming do not impose a state income tax on their residents).
But now California, with an average statewide unemployment rate of over 12% (in some regions the rate is over 20%) and a budget deficit of somewhere between $10 and $15 billion, is considering the imposition of a third income tax. The additional income tax rate would vary, according to which region of the state one lives in, and would be imposed directly by school districts and county governments.
Many of Californias public school districts (there are over 1000 of them) are themselves broke, just like the state government. And because of a California law that was brought about by passage of a ballot initiative back in 1978 (it was famously known as Proposition 13), California school districts cannot simply do what most public school districts in America do, and continually raise property taxes higher and higher.
So in the absence of additional state tax dollars, and without the option of raising local property taxes, California school districts are searching for additional revenue streams to feed their never-ending spending addictions. In response, the California legislature is contemplating a new law that would literally grant local school districts broad new authorities to tax personal income a third income tax for California residents according to the needs of the individual school districts themselves.
Along with the ability to impose a third income tax on residents income, this newly proposed power would also grant school districts the authority to impose additional sales taxes on alcohol, cigarettes, oil drilling (believe it or not there is some of this still going on in California), sugary beverages, and medicinal marijuana. Teachers unions in California are elated with the idea of all the additional tax revenue that school districts would theoretically have to spend on unionized teacher contracts, and Governor Jerry Brown, who is indebted to government employee unions, would theoretically stand to gain politically from the idea.
But while Jerry Brown and his government employee union friends are seeing dollar signs, California business owners already saddled with undue taxes, regulations, healthcare and workers compensation insurance requirements are seeing chaos. In what has been described as a confusing patchwork of tax rates for both businesses and individuals, business advocacy groups are reacting to the legislation with horror, realizing the disparity it could create among businesses operated on opposite sides of a school district boundary.
Given that each of Californias 1000-plus school districts would have the authority to set their own rates on the additional income and sales taxes, both businesses and individuals would be faced with the chaos and inequality of paying different income and sales tax rates depending on what public school district they found themselves in. As Gina Rodriquez, vice president of the California Taxpayers Association noted, this would pit school district against school district.
In addition to the chaos and confusion that the school district taxes would create, there is the disturbing fact that some people indeed several people in the California legislature actually think it is a good idea to levy a third income tax on a citizenry that is already living with double-digit unemployment. This is perhaps the greatest injustice entailed in Californias new scheme.
The very fact that Californias legislators would propose such an idea underscores the perverse, incestuous relationship between government employee unions, and the Democrat Party. Nobody can argue from the standpoint of sound economics that a third income tax will do anything but harm the overall California economy, but that seemingly doesnt matter to Governor Brown and his fellow Democrats.
As long as Democrat politicians can continue to re-distribute increasing amounts of wealth into the hands of unionized government employees, the unionized government employees will continue to do the grassroots political work to keep Democrat politicians in office. The government employees gratify the politicians, and the politicians gratify the government employees and the person who works and creates wealth in the private sector pays for it all.
Noble statesmen and women across the country have recently begun to say no to this kind of destructive public policy. But the perversion rages on for now in California.
WHenwe are spending upwards of $13,000 per pupil per year in the public schools, there should be no discussion about additional taxation to fund schools, there needs to be serious education reform starting with the Department of Education. I am not even going to reference school performance and indoctrination....don’t need to because it speaks for itself...
In the middle of a great recession/depression, raise taxes to ensure all business leaves the state.
In 2012 STOP THE INSANITY!
Isn't freedom grand?
This is exactly why my mother and father sold their farm in California and moved to Nevada ten years ago. They got tired of this nonsense...
47% of the people in Detroit and New Orleans cannot read or write...
Why continue to waste my money on such nonsense?
Could this third tax be the final straw for the idiots who vote for every school bond that comes down the pike?
I don’t think I can afford to live there anymore if this happens... it’ll be time to short sell the house.
California is insane if it tolerates this proposal. But then, California is insane ...
Over 50% of California’s state budget already goes to education. Like my tag line says, it is not a money problem it is a spending problem.
Socialist live in another world where there is no limit to that amount of money they can spend. Of course that world really does not exist except in their minds.
There is a limit to how much people are willing to pay in taxes. Bad things happen when states exceed that limit.
Of course the main stream media will be the cheerleaders for this, as you know it is for “the children”, or it is for “public safety”.
People are not buying that argument anymore. Fraud and lies may get another layer of taxes imposed but I can almost guarantee you that no additional money will be raised.
People will find away around paying more even if it means leaving the state. Sooner or later if California does not change its ways there will be more takers then there are producers and the financial house of cards will collapse.
$13,000 per pupil per year, and what are the results? The spending is at the high end in the inner city schools, which are little more than day care centers. There is still the overwhelming doctrine in the educrat culture that children in the inner cities are to be written off - which is in itself evidence of liberal racism. The University of Minnestoopid school of education had issued a doctrinal statement that any student who believes that pupils in inner city schools can achieve if motivation will not graduate from U of M.
The very idea that the same minds that created the problem are capable of a solution is of itself an insanity.
If it’s true that California spends $13,000 a year for every student, where is the money being spent? Show the people.
With all the people being layed off across the country, how many teachers have been layed off? How many have had their pay cut? How many have had their benefits cut off? It’s time they feel the pinch like everyone else. Check you schools and see how many employees there are vs students. How many illegals are in the schools? How many free food is handed out in the schools? It’s all out of control. By the way, how much lottery money goes to the schools?
The big question is, again, where is the money being spent? Show the people.
That is the Obama Base.
The Dems believe that the ideal world would be a Euro-socialist state, with high taxes and lots of bennies for everyone.
They are trying to condition people to expect lots of services from the gov’t and hope that once people are so used those services that they can raise enough taxes to cover them. The Swedish tax rates are probably what they are shooting for.
This is the stealth BO plan. He is trying to get this implemented before the economy tanks again. But time is running out, and he has to run the table on this game or else he could lose everything. If the bond market crashes and the cost of borrowing goes way up then this plan will fail.
California: State economic failure ensured. =.=
“revenue streams” and “sugary beverages”
You know, it would be one thing if the schools were turning out top drawer students, but that just isn’t the case. More money just means more of what we’ve already got - a veritable money pit. The system is far beyond reform or repair and people need to realize that. The system is broken and confiscating wealth is not the answer. This is the end game or final stage where they start to eat each other. Get your kids out of government schools, stop the madness. It’s over, folks, get used to it.
It wont be long before California tries to pass a law, that would allow the state government to disallow someone to move their business out of state.
TN does tax interest income and dividend income, I do believe. In addition to those living in a “city” they get double taxation with both city & county taxes and sales taxes are high too. Still a beautiful state, we have property there but haven’t built yet do to the economy and not wanting to be stuck with two house payments.
I used to live in Cal. I am sorry for those of you still there as the death spiril approaches Stuka proportions.
No one want sto admit that education begins in the home. Add onto that the multi cultural approach to education and you have a beast whose appetite cannot be met.
Without massive spending, governments don't grow into the monsters they are in most other states. People don't even realize how enslaved they have become, think it's normal, and figure everybody out there is taxed to death too; unreal.
Only $13,000 per pupil - are you sure?
In cities here in NY State (NY, Buffalo, Syracuse, Rochester) - the average cost per pupil is $22,000!
And you’ll be lucky if half graduate.....
Also throw in huge amounts of “fossil fuel pollutants” that won't be released driving the kiddies to/from school.
No to/from school would lead to less traffic on the roads, which equals less need for maintaining roads, right?
The need for tax revenues should plummet! YAY!
Like “they'd” ever let any of this stuff pass, right?
Public education is a failure. It depends on people who desire to be educated.
Social Security and Medicare are income taxes as well.
If they could just figure out a way to get enough of our money, they could solve all our problems. We’re just too stupid and greedy.
There are NO private day schools in my state that charge a tuition that high.
There is one boarding school that does, but it is a specialized school that includes training for a specific Olympic sport!
I had a professor a long time ago that stated that taxes are meant to keep the people broke. Then the government has control over them.
At least they will be collecting California tax money.
What outrages me, is them paying for illegal alien’s education, running a $ 15 Billion deficit and then being bailed out by the federal government.
The bailout funds are taxes that I have to pay even though I don’t live in California and am opposed to paying for illegal’s education.
This also applies to healthcare and abortion.
What they did have was a work ethic and self control and a desire to learn and parents that loved and disciplined them .
Excellent point. Also when the kids got spanked spanked by the teacher, they got spanked again when they got home and they all survived
While they are proposing this they let thousands if not hundreds of thousands of acres of land be put into to enviormental trusts which are then made tax exempt a direct hit on school budgets.
Eventually, the only people left in California with money wil be teachers, government employees and lawyers. And knowing lawyers, that won’t last long.
The (economic) phrase that you are looking for is zero elasticity. That is the concept that liberal trash cannot understand.
When a tax is imposed spending habits change - money does not suddenly appear of of thin air to pay these crushing burdens.
I can't swear to this, but I seem to remember reading that CA was floating the idea of a "fee" to be assessed against businesses when they left the state. Something along the lines of a percentage that correlated in some fashion with the size/assets of the business that was leaving.
Personally, that's a great idea.
Nothing like imposing a draconian tax by your local school board to get the "tax slaves" attention and mad as a hornets nest
Imagine what type of blow-back they will get.LOL
Should make for some very interesting school board meeting and elections
The school broad can't blame some faceless bureaucrat in DC to pass the pain.
Your prof was probably referencing a 1940s era speech to congress or somesuch, iirc, by Beardsley Ruml. He came up withe the idea or mechanism of income witholding by IRS, btw.
Hopefully, their citizens.....
I like that term.
For some areas (which already have a local income tax) it would be a fourth income tax.
The citizens at the voting booth, that's who.
I know if my state proposed this, my state rep would have me personally at her door making sure they understood they will never ever again win a election
Local school board proposed new taxes would have a mob at their meetings and quite frankly a unruly one
>>>It wont be long before California tries to pass a law, that would allow the state government to disallow someone to move their business out of state.<<<
California won’t need to pass a law... the Feds are already prohibiting it:
Yup - Ruml wrote a paper entitled “Taxes for revenue are obsolete” in 1946.
What is remarkable is the number of people who seem to believe at some level that theft is wrong, but not if legislators vote on it. They basically enjoy using the power of the state as a kind of club to beat up the rest of us. There is no way out of this mess without a lot of pain. The perps, moreover, are not suddenly going to be interested in facts or logic or common sense reality. They will more likely try to effect a scorched earth kind of policy as they are utterly incapable of ever admitting their cherished delusions were just that - delusions. Subsidizing failure requires
ever increasing amounts of subsidy, which is what we’ve seen for the last 50 years. Now that “revenue streams” have collapsed it will get interesting.