So, you’re asking, how do we pay for bridges and fire fighters and teachers and trains and health care for kids and sewers that don’t overflow all the time, without putting an unbearable tax burden on middle-class families or small businesses?
The answer is not hard and it’s been laid out a lot of times by a lot of people. Here’s James Surowiecki in the New Yorker:
Between 2002 and 2007, for instance, the bottom ninety-nine per cent of incomes grew 1.3 per cent a year in real terms—while the incomes of the top one per cent grew ten per cent a year. That one per cent accounted for two-thirds of all income growth in those years. People in the ninety-fifth to the ninety-ninth percentiles of income have represented a fairly constant share of the national income for twenty-five years now. But in that period the top one per cent has seen its share of national income double; in 2007, it captured twenty-three per cent of the nation’s total income. Even within the top one per cent, income is getting more concentrated: the top 0.1 per cent of earners have seen their share of national income triple over the same period. All by themselves, they now earn as much as the bottom hundred and twenty million people. So at the same time that the rich have been pulling away from the middle class, the very rich have been pulling away from the pretty rich, and the very, very rich have been pulling away from the very rich.
The current debate over taxes takes none of this into account. At the moment, we have a system of tax brackets well suited to nineteenth-century New Zealand. Our system sets the top bracket at three hundred and seventy-five thousand dollars, with a tax rate of thirty-five per cent. (People in the second-highest bracket, starting at a hundred and seventy-two thousand dollars for individuals, pay thirty-three per cent.) This means that someone making two hundred thousand dollars a year and someone making two hundred million dollars a year pay at similar tax rates. LeBron James and LeBron James’s dentist: same difference.
This makes no sense—there’s a yawning chasm between the professional and the plutocratic classes, and the tax system should reflect that. A better tax system would have more brackets, so that the super-rich pay higher rates. (The most obvious bracket to add would be a higher rate at a million dollars a year, but there’s no reason to stop there.) This would make the system fairer, since it would reflect the real stratification among high-income earners. A few extra brackets at the top could also bring in tens of billions of dollars in additional revenue.
Not to mention the fun of watching Republicans try to pretend they were somehow sticking up for the little guy by opposing added taxes on multimillionaires.
Tags: public services, taxes
Laura mentioned Paul Krugman’s excellent op-ed. He and Salon.com blogger Glenn Greenwald have been thinking along similar lines. Here are some of the stories that inspired them:
The city of Camden, NJ is permanently closing its library system by the end of the year:
Camden is preparing to permanently shut its library system by the end of the year, potentially leaving residents of the impoverished city among the few in the United States unable to borrow a library book free.
At an emotional but sparsely attended meeting of the library board Thursday, its president, Martin McKernan, said the city’s three libraries cannot stay open past Dec. 31 because of severe budget cuts by Mayor Dana L. Redd.
“It’s extraordinary, it’s appalling,” McKernan said.
All materials in the libraries would be donated, auctioned, stored, or destroyed. That includes 187,000 books, historical documents, artifacts, and electronic equipment. Keeping materials in the shuttered buildings is a fire hazard, officials said, and would make them vulnerable to vandalism and vermin.
Camden is a city of over 500,000 people, who will have no access to free books or to free library computers and internet.
Ripping up the roads:
Paved roads, historical emblems of American achievement, are being torn up across rural America and replaced with gravel or other rough surfaces as counties struggle with tight budgets and dwindling state and federal revenue. State money for local roads was cut in many places amid budget shortfalls.
In Michigan, at least 38 of the 83 counties have converted some asphalt roads to gravel in recent years. Last year, South Dakota turned at least 100 miles of asphalt road surfaces to gravel. Counties in Alabama and Pennsylvania have begun downgrading asphalt roads to cheaper chip-and-seal road, also known as “poor man’s pavement.” Some counties in Ohio are simply letting roads erode to gravel.
Remember when America’s roadways and highways were something to be proud of?
Utah looks at making the senior year of high school optional:
The sudden buzz over the relative value of senior year stems from a recent proposal by state Sen. Chris Buttars that Utah make a dent in its budget gap by eliminating the 12th grade.
The notion quickly gained some traction among supporters who agreed with the Republican’s assessment that many seniors frittered away their final year of high school, but faced vehement opposition from other quarters, including in his hometown of West Jordan.
“My parents are against it,” Williams said. “All the teachers at the school are against it. I’m against it.”
Buttars has since toned down the idea, suggesting instead that senior year become optional for students who complete their required credits early. He estimated the move could save up to $60 million, the Salt Lake Tribune reported.
There’s more. In the NY Times we learn of a Georgia public bus system being shut down completely:
Many transit systems have cut service to make ends meet, but Clayton County, Ga., a suburb of Atlanta, decided to cut all the way, and shut down its entire public bus system. Its last buses ran on March 31, stranding 8,400 daily riders.
and Hawaii furloughed schools:
Plenty of businesses and governments furloughed workers this year, but Hawaii went further — it furloughed its schoolchildren. Public schools across the state closed on 17 Fridays during the past school year to save money, giving students the shortest academic year in the nation and sending working parents scrambling to find care for them.
We’re in a big, big mess – and there aren’t any real solutions being offered. Cutting taxes for the wealthy isn’t going to dig us out of this hole. Worrying about the deficit isn’t going to dig us out. Cutting food stamps or Social Security isn’t the way forward. President Obama has said that everything other than defense is on the chopping block. We are supporting over 1000 overseas military bases. Is this really making us stronger or safer? If we can cut food to hungry families without even blinking, we shouldn’t be afraid of reevaluating how we spend our defense dollars.
Tags: Education, public services, public transit, state budgets, sustainable governance
By Kim McMurray — Pennsylvania
This week, a new report by the Rockefeller Foundation showed that Americans are more economically insecure now than in the past three decades. The report measured the percentage of people who saw a household income decrease of 25% or more in the past year. More Americans are facing complete economic devastation. They are out of savings. They need to choose between a mortgage payment and food. They don’t know where to turn.
This isn’t breaking news for the Working America community. Every night, we go out and talk to people who are experiencing financial hardships because of the economic downturn. It seems like everyone has a story about unemployment. It could be her son who graduated college two years ago but is still living at home. His sister-in-law who prays he won’t get sick. Or her husband who spends his days on their couch battling depression.
Things started to look up. Congress passed an unemployment benefit extension and for the first time in eight years, the Pennsylvania Senate passed a budget on time. You would think that there would be a collective sigh of relief in the Commonwealth that finally, finally, something passed on time, but the new budget cut essential services that working families depend on, especially in this time of economic need.
Our member’s stories are not unique. Rather, they are far, far too common. Howard was laid off two years ago and he has been unable to find work since. He sends out applications each week and is currently working to complete his GED at a job training program near Allentown. His family is now facing foreclosure. This is the time when the Hillers need state services the most, but housing and legal assistance have both seen drastic cuts and are stretched thin.
Lorraine runs a day care business in Philadelphia. She has been working in the industry for over ten years. She built her business with the help of the Keystone Stars program which provides resources so that childcare providers can enhance early education programs. The children in her care benefitted directly from these resources and Lorraine was able to build her business, though she still has further to go. However, this program as well as other early education programs were severely cut this year and will be forced to shorten their reach.
The solutions are simple. Instead of cutting essential services that families rely on, our elected officials need to close the corporate tax loopholes that allow big businesses to get away with not paying their fair share. There are four main ways they can do this.
The first is to close the loophole which allows 70% of businesses in Pennsylvania to avoid paying income taxes. Multistate companies like WalMart avoid paying income taxes in Pennsylvania by setting up subsidiaries in tax-haven states like Delaware. These subsidiaries can be nothing more than a post office box. One address in Delaware is home to over 14,000 of these subsidiaries. Closing this loophole would bring over $616 million to the state annually which could go towards funding public schools, libraries, homeless shelters and mental health clinics, all of which experienced significant budget cuts this year.
Second, we have to close the tax breaks big corporations receive for collecting state sales tax. This outdated system allows corporations to keep 1% of the 6% sales tax for filing on time. The tax break dates back to shopkeepers manually calculating and collecting the tax. However, it is now collected by computer. It is a tax break which could bring in $74 million a year. The Scranton School for the Deaf, which lost 100% of its funding this year? $5.4 million.
Third, we need to impose a tax on smokeless tobacco products. Pennsylvania is one of two states that doesn’t do this. If Virginia and North Carolina can benefit from taxing tobacco products, so can Pennsylvania.
Last, we need to pass a strong natural gas severance tax. Pennsylvania has an abundance of natural gas and our citizens should benefit from its extraction. Instead they are left with poisoned drinking water and unsafe drilling methods as funding for safety inspections saw significant cuts.
With the unemployment level still hovering over 9%, our Pennsylvania Senators had a chance to show that they care about working families and their struggles by funding the programs that they depend on, but they chose to lend their support to corporations who refuse to pay their fair share. The fight is just beginning for next year.
The federal government, though it plays a huge role, is not the only body responsible for pulling our country out of this recession. The state governments need to play their part as well.
Tags: public services, state budgets, sustainable governance
In San Francisco it can take weeks to get an appointment at the DMV:
Because of the state’s budget deficit, the number of personnel hours to manage California’s car culture has been reduced, while the workload has remained steady or increased. This has led to a shortage of resources at popular and convenient D.M.V. branches like San Francisco’s.
The D.M.V. processed 29.7 million licenses and identification cards statewide in 2009, up nearly 400,000 from 2008. But during the same period, to save money, the state has furloughed D.M.V. employees and closed offices the first three Fridays of each month, said George Valverde, director of the state D.M.V. “We’re losing about 15 percent of our available hours.”
The new reality of fewer open hours and a greater workload means that some problems that were once resolved quickly can now languish.
and
Technology has brought some needed relief: most D.M.V. business can now be done online — 9.4 million transactions were done online last year, a record, with a 20 percent increase in the first quarter of 2010, according to D.M.V. records.
But Armando Botello, a D.M.V. spokesman, said there remained a “digital divide” affecting poorer Californians who lack Internet access. In addition, Mr. Botello said, “a lot of people wait until the last minute” to pay D.M.V. fees — a situation perhaps exacerbated by the recession — and do not leave enough time to receive a license or vehicle registration renewal by mail.
Those who show up without an appointment can expect to stand in line for hours.
In North Carolina:
You don’t just “drop by” the Division of Motor Vehicles in New Hanover County anymore. A visit could take you anywhere from three hours to most of your day.
It’s 6:30 a.m., and people are lining up outside the DMV, hours before it even opens.
Many states have implemented furlough days for state offices. In Wisconsin a creative measure has been added in to the mix:
Titling and registration services are offered by many third-party partners such as some police stations, grocery stores and financial institutions around the state and can be found at the WisDOT web site.
Long lines and delays are happening all over the country. In Nevada:
Malone says a DMV visit that used to take an hour could now take more than three. He says the best way to do business with the DMV is to visit its web site first.
One reason service is even slower in Nevada is implementation of the Real ID Act:
Faced with stiff public opposition, the Nevada Department of Motor Vehicles has withdrawn a proposal to immediately require motorists to get a new type of driver’s license. Instead, the DMV will give motorists the option of either continuing with their current licenses or obtaining a license that complies with the federal “Real ID” act.
The Real ID Act was passed in 2005, but proved to be so cumbersome and expensive to adopt, that an extension was granted. The extension expired on Dec. 31, 2009. Now some of the states that did not opt out (at least 15 states have refused to implement REAL ID) are attempting to implement this costly and time consuming new license, at a time when they can ill afford to do so.
While DHS estimated that the implementation of REAL ID will cost states $3.9 billion, Congress has appropriated only $200 million for state implementation.
It seems that attending to DMV business online is the best way to go, if that’s an option. (some states are lagging behind in technology) If you do have to go to the DMV, be sure to call ahead, especially if you live in a state that didn’t opt out of REAL ID, to try to schedule an appointment and make sure you bring everything you need.
Tags: budget cuts, public services
National Library Week is being observed this year from April 11-17. National Library Week was first observed in 1958, and has since become the traditional week to celebrate all libraries, whether they be public, academic, or special collections. The theme this year is: Communities Thrive @ Your Library. The American Library Association (ALA) points out that libraries are at the heart of their communities.
Sadly, in many communities, the heart is being shut down. Communities around the country are facing difficult budget decisions, and in many cases, libraries are being closed down, or their budgets cut. This comes at a time when library use has greatly increased. Folks are looking for how-to books, using the internet services, or taking out books, puzzles, CDs, and movies.
Paul LeClerc, President of the New York City Public Library writes about how the proposed $33 million budget cut will affect libraries in New York City:
- 6 million fewer visits made to NYPL libraries next year – 1 million fewer by children and young people
- 5 million fewer items circulated – 1.7 million to children
- $9 million less with which to purchase books and other materials
- 1.5 million fewer computer sessions
- 17,000 fewer programs and classes, serving 500,000 fewer people
- tens of thousands fewer people helped with job searches, tax preparation, retirement planning, voter registration, and starting a business
What would also be lost with a $33 million cut is hope to the economically disadvantaged, inspiration to the new immigrant, and a safe and nurturing place for those in need. Most importantly, libraries provide an essential tool – knowledge – to everyone who enters, regardless of race, creed, or ethnicity.
Boston is likely to close 4 branch libraries. In Florida the state legislature is considering ending state aid to libraries. In Phoenix the library is facing a 21.4 % budget cut, which would mean that 6 out of 15 branches would close.
These are difficult and painful decisions being made in communities. Getting involved can make a difference. In Charlotte, NC the library board voted to keep their libraries open:
The Mecklenburg County Library Board of Trustees voted Wednesday to cut salaries and lay off 84 people instead of closing 12 library branches.
The board discussed three options at a special meeting Wednesday to make up a $2 million budget shortfall.
One option included closing 12 of the county’s 24 libraries. The board decided last week that would be the best option, but public outcry forced the board to reconsider.
“The community response to the library’s plight has been nothing short of overwhelming,” said library director Charles Brown.
“The people have spoken and clearly and loudly they have said the library is a very valued institution,” said board member Robin Bransterom.
Clearly this came at a cost, but it does keep all of the libraries open, and it shows that library users can have a real impact on these decisions in their communities. This blog post. has been making the rounds in my state, and serves as a gentle reminder of why libraries are so important:
Libraries aren’t just about book lending. They are the heart of most communities. They are the one place in any community that you can go all year, rain or shine, rich or penniless. They are the one place in communities that provide fair and equal access. They don’t discriminate. They don’t judge. They give over and over and over.
And now is when they are needed most desperately. Now is when they provide the most valuable services. Now is when, even if a state or county is so far in the red they feel they’ll never get out, now is when libraries should be getting the green light to extend their hours, not have them taken away. Without libraries, the economic divide in our communities grows even wider. Please. If the library in your community is in danger, speak up. If you can help any library that’s in trouble, please do it. This is about kids, babies, new moms and dads, unemployed parents, a lonely retired person who needs weekly or daily interaction and reading material to get them through the week. It’s about keeping communities intact. Your community. My community. It matters.
To learn more about how to help, the folks at Save Libraries.org are working to help folks from around the country to coordinate and share information.
Tags: public services
Real-life circumstances are yet again making the point: Public services are not free. One way or another, they have to be paid for.
Now it’s water, not just in one state but in cities and towns across the country. You’d think people would want the water they drink to be clean and safe, but apparently too many of us have gotten used to paying next to nothing for the water we drink and cook with, shower in and flush down the toilet. Our water systems are crumbling and overflowing, sometimes with raw sewage, and it still hasn’t fully sunk in that fixing this will take real money—but it’s worth doing right.
Today, a significant water line bursts on average every two minutes somewhere in the country, according to a New York Times analysis of Environmental Protection Agency data.
In Washington alone there is a pipe break every day, on average, and this weekend’s intense rains overwhelmed the city’s system, causing untreated sewage to flow into the Potomac and Anacostia Rivers.
State and federal studies indicate that thousands of water and sewer systems may be too old to function properly.
For decades, these systems — some built around the time of the Civil War — have been ignored by politicians and residents accustomed to paying almost nothing for water delivery and sewage removal. And so each year, hundreds of thousands of ruptures damage streets and homes and cause dangerous pollutants to seep into drinking water supplies.
As the head of the District of Columbia Water and Sewer Authority is quoted pointing out, “People pay more for their cellphones and cable television than for water…You can go a day without a phone or TV. You can’t go a day without water.”
As Atrios notes,
I’ve long chafed at those who suggested “shovel ready projects” were hard to find as fixing water/sewer systems is both an obvious need and in many places fairly simple. Dig up road, replace pipe, fix road, repeat. There are places with more complex engineering issues, of course.
This is the choice: Either we pay—whether in water bills or taxes—for significant repairs to the nation’s crumbling water and sewer systems, or we have more and more pipe breaks and contaminated water. There’s a whole political industry dedicated to obscuring that fact, but in the end it really is that simple.
Tags: infrastructure, public services
