The Meathead Tax
It is difficult to look at the failing California school system and not support almost any initiative that promises any improvement in educational performance, but one must ask if expanding an already failing system, adding population while diluting the quality of teaching still further, will actually improve the process.
If that works, it may be the first time in history. I don’t think that there is already a surplus of good teachers and up-to-date facilities – and if there is, why do our children vie with Louisiana and Arkansas for reading scores? (Worse yet, Louisiana and Arkansas beat us in the latest National Report Card! But then so did almost every State except Hawaii!)
Even assuming that we could expand a failed system while increasing the quality – this initiative would not be the vehicle to do so. First, as experience has taught us over and over, all government programs expand logarithmically and not arithmetically, and every proponent of a new program vastly underestimates the cost as approximating the low end of any prediction.
The pre-school initiative in Quebec estimated the cost would be $230 million after five years – the actual cost after eight years is $1.7 billion.
The benefits as predicted by the proponents are equally suspect. In Chicago, where a RAND study is used to predict great things, graduation rates have indeed improved but still do not reach 50% among minority students. The RAND study is based on information gathered by Arthur Reynolds at the University of Wisconsin-Madison in his 2001 paper.
Harvard University Civil Rights Project already puts California Black drop-out rates at 50% and there is nowhere in the RAND report any suggestion that rate will go higher. It didn’t in Chicago even with their pre-school program that lasted several times as long as the one projected for California, according to the Reason Foundation.
Then there is the inherent problem in setting a tax increase only on one segment of the California society – the wealthy. At the same time that the Alternative Minimum Tax is causing maximum heartache in the nations tax schedule, here comes another "soak the rich scheme."
Just in case you have not followed the arcane argument on the Alternative Minimum Tax, it is pretty simple to explain. The Alternative Minimum Tax was instituted in 1970s to get a few hundred rich people who were not paying their ‘fair share."
Viola! Here we are a few years later, and inflation has set in, and the "soak the rich" scheme may effect 17 MILLION taxpayers!
Similarly, any tax specifically on the wealthy will inevitably encompass many more people as time goes on, and that will necessarily be needed as the costs exceed the estimate.
The Law of Unintended Consequences has not yet been repealed.
This Pre-school concept needs to be examined in a light other than "ANYTHING for the children." We are a State, County, and City government in DEEP debt, and hardly in a position to take on more costly programs. The rich will not stand for being further taxed, because the concept "That which you tax you have fewer of, and that which you subsidize you have more of" is an economic law that has not also been repealed.
We are about to have fewer rich people in this state – and we need them, and their taxes for other things.
Taxing the rich may become such a slippery slope to fund desirable programs that we drive the rich further to their out-of-state homes.
I am sorry, but people react negatively to pain! Compulsory Utopians believe in static economics, while dynamic economics is the rule. Compulsory Utopians need to remember the ill-fated 1990s Luxury Tax on boats and airplanes -- it not only did not produce more tax revenue – it actually drove boat-builders and aircraft makers out of business with the associated loss of jobs. The boat-builders alone laid off more than 25,000 people!
The 1990 Luxury Tax, supposedly on the rich, not only did not produce more tax revenue – it was an economic disaster that Legislators rushed to repeal, but not until many were hurt.
Those who support this ill-conceived so-called education legislation should be required to put their retirement checks at risk through a performance bond – because you can bet the farm that the results will not be as good as predicted, and the costs will be horrendous!
The supporters must not be able to once again, simply shrug and say, "Well our intentions were good.’
This State has sufficient non-performing educational assets to last a millennium!
