NY Teachers Against the Tax Cap

     It's ironic that while I'm a big fan of Governor Andrew Cuomo one of the things that he may have gained a lot of popularity for-the property tax cap-is the part of his legacy I'm least excited about, kind of like how I loved Clinton but not welfare reform.

     Now the NY teachers-and some parents and students-are taking on the tax cap, challenging it's constitutionality. I can't help but think of my debate with Woj over inflation and then the definition of regressive taxation. For more check out these.

     http://diaryofarepublicanhater.blogspot.com/2013/02/woj-sheds-some-light-on-fiscal-vs.html

     http://diaryofarepublicanhater.blogspot.com/2013/02/woj-sheds-some-light-on-fiscal-vs.html

     I came around to get some of what he is saying in terms of some stimulus have regressive effects-it depends on how it's structured. So for example, both the Reagan and Bush tax cuts-which liberals like me hate-also greatly increased the deficit-along with in both cases a huge military buildup which liberals like me again hate-and yet not many liberals would claim that the effects of these tax cuts were progressive, even though in the short turn they may have raised GDP some-though I don't know how much.

    Today there's the story out about the property tax cap-another regressive tax cut. Again, no doubt it's very popular but its impacts are quite regressive, certainly in terms of education which is the basis of the suit.

    The teachers assert that the property tax has led to unequal education funding.

    "The lawsuit by the union, New York State United Teachers, asserts that the tax cap interferes with local control of schools, and that a requirement that 60 percent of voters support any override of the limit dilutes the voting power of those who favor exceeding the cap."      

 

     "The tax cap, which Mr. Cuomo persuaded the Legislature to approve in 2011, limits annual increases in local property taxes to 2 percent or the rate of inflation, whichever is lower. A vast majority of school districts — 642 of 678, or about 95 percent — stayed within the tax cap last year, according to the governor’s office."

    http://www.nytimes.com/2013/02/21/nyregion/new-york-state-teachers-union-sues-over-tax-cap.html?_r=0

    The state constitution according to a decision by the Court of Appeals says that disparities in state aid to schools can only be justified to exercise "local control."

    The lawsuit also makes the point that by requiring a vote of 60% of the voters to override the cap, it's actually in conflict with the principle of "one person, one vote." Essentially the vote of a person who wants to override the veto is worth only three-fifths of a person who wants to maintain it.

    This will be an interesting case to watch. Many states have imposed regressive tax codes under the guise of tax cutting-the worst offenders are things like Colorado's "Taxypayer's Bill of Rights."

    Some will no doubt try to label this action as just the interests of teachers unions. However, it's an interest that its touching us all as the quality of education in the state comes under increasing pressure.