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Pittsburgh To Tax Students

societyofrobots writes "Pittsburgh Mayor Luke Ravenstahl has proposed taxing college and professional students for the privilege of receiving an education in the city. The proposed tax will charge students in the city at a rate of 1% of their yearly tuition — which, at Carnegie Mellon, would mean roughly a $400 tax (PDF) on most students. As the tax proposal hit local media outlets this week, the mayor repeatedly emphasized the burden that college students have placed on city services, and the need for students to pay their 'fair share.'"

72 of 344 comments (clear)

  1. dumb idea by lpaul55 · · Score: 5, Insightful

    That's a way to dumb down the city.

    --
    ... now back to the bit mines.
    1. Re:dumb idea by Tsar · · Score: 5, Funny

      That's a way to dumb down the city.

      Too late!

    2. Re:dumb idea by maxwell+demon · · Score: 2, Insightful

      Can I ask you why you think the parent thought that there was anything wrong with the spelling or grammar in the grandparent?
      The parent clearly and obviously wanted to imply that the city already is dumb, so it's too late to dumb it down. I don't see how this relates in any way to the correctness of the English in the grandparent.

      --
      The Tao of math: The numbers you can count are not the real numbers.
    3. Re:dumb idea by Anonymous Coward · · Score: 2, Insightful

      Well, chances are even someone with a $40,000 scholarship will have to pay that $400.

    4. Re:dumb idea by CastrTroy · · Score: 2, Insightful

      Student loans don't just cover tuition. They also cover books, rent, food, and taxes on all those items. In Canada where I live, they make sure you pay your tuition, but after that, the remaining goes in your account. I don't see why they wouldn't be able to pay the tax out of a student loan. Also, I doubt the average tuition is $40,000. If you are from in state, and going to a state school, you might pay $5000 a year, which puts your tax fee at more like $50. Granted, I still think this is stupid. Students already pay property tax (through their rent). They shouldn't have to pay extra tax just because they are going to school. Maybe the schools can fight back and charge $1 tuition, and $9999 administrative fees. I know my school had a tuition freeze, so they just increased the administration fee. It would be a smart school to use that to their advantage.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    5. Re:dumb idea by torstenvl · · Score: 2, Informative

      Carnegie Mellon is not a state school. Their tuition is $40,300 per year. http://www.cmu.edu/hub/sa/sa_tuition.html

      It's often best to know what you're talking about before opening your mouth.

    6. Re:dumb idea by larry+bagina · · Score: 5, Informative

      what services do they use a lot of? My local university has their own libraries, police department, and pays for the "free" municipal bus routes (all paid for by tuition and admin fees). A large chunk of my property taxes are paying for 1-12 education. how many college students also bring along their 6-18 yo kid?

      My state has two programs that limit the property taxes for people who own their primary residence, so people who buy a house and rent it out to students (or others) pay higher property taxes.

      --
      Do you even lift?

      These aren't the 'roids you're looking for.

    7. Re:dumb idea by commodore64_love · · Score: 2, Informative

      CNN just reported now the State of New York is considering the same stupid idea - tax tuition of students at 5%.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    8. Re:dumb idea by occamsarmyknife · · Score: 2, Informative

      Also, I doubt the average tuition is $40,000.

      In Canada where I live,

      I don't think you quite realize how well off Canadians have it with cost of education. The two big schools in Pittsburgh are University of Pittsburgh and Carnegie Mellon. U Pitt is a state school, in-state tuition is $13-$16K a year, out of state tuition is $23-$29K a year. Carnegie Mellon is probably where the quoted figure comes from, as their tuition for entering freshman this year was $40,300. Doubt no longer.

      --
      "Until the become conscious they will never rebel, and until after they have rebelled they cannot become conscious"
    9. Re:dumb idea by Teancum · · Score: 4, Insightful

      That said, I disagree that this is bad policy. University students are (on average) priveleged, pay little rent/property tax, and use a lot of services. Waive the tax for scholarship students (or make the University pay it.) For poor students borrowing hundreds of $K to attend Carnegie Mellon - your bad decisions cannot drive policy.

      Most educational institutions are tax supported, and by far and away it can be proven beyond doubt that a university in a town can make or break the town economically. University research, social networks (including fraternities, clubs, and even with graduating classes themselves), spin-off businesses, and even access to world-class talent to help work with municipal issues that come up from time to time.

      My point is that those cities who think a university is a financial burden ought to consider what their city would be like without any institutions of higher learning. Discounting trolls who claim the city is simply going to devolve into ignorance (citizens can go elsewhere for college-level education and then return.... assuming of course that the kids going away to another town will return), the economic benefit to a city is so huge for having a university in the town that municipal (not state) funding of the university might even make some sense.

      Few university students that I have met are so privileged as is implied here. Yes, there are some students who come from very wealthy families and flaunt their cash, but by far and away most students are struggling at or below almost any reasonable poverty guideline (most would qualify for Food Stamps and other social welfare programs), live in sub-standard high density housing, and tend to be engaged in activities that would not necessarily be a huge burden on a city in the first place (aka mostly using mass-transit and on a per-capita basis have a low carbon/energy footprint). Adding in volunteer work by students on the behalf of the community, and economic benefits in the form of internship, low-wage service jobs performed by students (aka staff in restaurants and other service-related businesses, and a ready pool of educated, intelligent employees willing to work for sub-par wages), it is obvious that most college students are effectively taxed anyway. Again, on a per-capita basis if you factor in off-campus housing, I would dare suggest that taxable income generated by a city in terms of property taxes collected for a similar group of people in the same economic/age group is very likely to be higher from college students than from non-college students. So from a pure fiscal standpoint it makes even less sense to impose an additional tax on students based on this rationale as well.

      Ultimately a tax is a sign that the students aren't welcome in the community. This will ultimately be reflected in how the students will treat the community (rather harshly, I would suppose), and it would also be something that competing universities would gladly mention if they are trying to recruit students into their school (our town welcomes the students.... unlike Philadelphia who taxes them and wants them to leave).

      Just the attitude alone is cause for concern, and would be room to recommend to a board of regents at any school in a city with this attitude to simply stop all capital improvements for its campus and reject any increase in the student population at that school as well. This should include state schools as well.

    10. Re:dumb idea by samkass · · Score: 2, Interesting

      I'm not sure if you're referring directly to Pittsburgh or not. There are areas of Pittsburgh, such as Oakland, where a majority of the land is owned by either the University of Pittsburgh, Carnegie Mellon, Duquesne, Carlow, etc. Some of this property even generates revenue for those schools in terms of shops or sublets. In recent years, as well, the Universities have been buying property that was previously owned by commercial enterprises that had paid taxes.

      The situation is exacerbated in Pittsburgh because the University of Pittsburgh is one of the best medical universities in the world, and has affiliated with it the University of Pittsburgh Medical Center. Hospitals are also not taxed in Pittsburgh, and THEY have also been expanding. There was an attempt to add a surcharge to all hospital bills at one point, but that too got shot down.

      In short, Pittsburgh can't afford it. If the schools are really as good as everyone thinks, they're probably worth the extra 1%. If it does have an affect and the universities stop growing as fast and stop taking over commercial real estate, that's probably also a bonus for the city. And, in aggregate, probably a much bigger bonus than the small loss of student population the surcharge will induce.

      --
      E pluribus unum
    11. Re:dumb idea by mabhatter654 · · Score: 3, Interesting

      but if you have a hospital that has that many people coming to it, then it has highly paid employees and families traveling to your city for medical care and professionals for conferences. If you're not making money with tens of thousands of people coming per day from outside your city to spend money there, then you're doing something wrong.

      by this line of thinking why not raise taxes on poor people to get them to move out. Then most of the city will be university... or shops and businesses that support university, problem solved with the pesky citizens.

      Living in Michigan, I see this difference very clearly between Ann Arbor and East Lansing. In Ann Arbor, the University and Hospital is in the very core of the city. Things going on at UofM are going on in Ann Arbor..students go everywhere in the city for shopping and work, it's well mixed and well connected. In East Lansing the situation is very different, being a land grant school MSU was put on a big empty square miles "in the country" specifically to develop the idea it was "separate" and the city of East Lansing is a little sliver between expensive Lansing suburbs...MSU is probably bigger than the city in raw area from the start. Now they have 30K students living in the middle of nowhere and your closest malls, restaurants are miles away and all the travel goes thru one little "suburb". It's a very "us versus them" attitude I don't see when I talk to people that live/work in Ann Arbor.

    12. Re:dumb idea by tftp · · Score: 2, Insightful

      What are they going to do next? Tax preschool?

      They are going to tax any group that can't mount an organized defence against such a tax.

  2. Student effect on economy by DeadPixels · · Score: 4, Insightful

    While it's true that the students don't pay regular taxes like other residents, what about the fact that they bring a huge amount of disposable income and spend it in the city? The money goes to the local businesses, who in turn pay taxes on their revenue. Seems fair enough to me.

    1. Re:Student effect on economy by the+eric+conspiracy · · Score: 5, Insightful

      What do you mean students don't pay taxes like other residents? Do they get exemptions from sales and gas taxes? Do their landlords not pay property taxes that get included in the rents they pay? If they take jobs in the city don't they pay state income taxes that get partially recycled to the city?

    2. Re:Student effect on economy by MikeD83 · · Score: 3, Informative

      In Boston most colleges and universities are exempt from property taxes. The city has been trying for years to figure out ways to squeeze them for the extra cash. We've heard the "pay their fair share" argument as well.Boston Globe Article

    3. Re:Student effect on economy by Anonymous Coward · · Score: 5, Informative

      I'm not defending higher taxes, but I want to give some context, Pittsburgh has a high percentage of it's economy that comes from non-profit entities such as universities and hospitals from which they don't collect the same amount of taxes as they would from a for profit company. This has always been a problem for Pittsburgh, even when the economy wasn't bad. And while the students do pay some local taxes (sales taxes, etc) other people who work in Pittsburgh pay those taxes, plus they also pay income taxes. So, in general, students pay less taxes per person compared to other employed people. A fairness argument is tough to gauge though. Is it fair to tax to students on tuition (money that students need to PAY compared to income that they EARN)? Is it fair to charge more to CMU students compared to Pitt students just because they pay more tuition? Are they going to take into account the level of student aid you get? Do students use up the same level of city services as other people who work in the city? They don't tend to drive much. Campuses have their own police forces. This is something that has been coming for some time. I was once audited by the City of Pittsburgh while at CMU because I received a health insurance benefit from a previous employer and they made me prove that I could legitimately file taxes as a resident of another state. They were pretty reasonable about it and didn't end up charging me anything, but I've heard a lot a similar stories. I think another part of it is that many students (particularly at CMU) are from somewhere else and the city sees them as an opportunity to tax "outsiders".

    4. Re:Student effect on economy by ShieldW0lf · · Score: 4, Funny

      You're missing the point. The point is, our civilization is going to fail, and they're throwing any shit they can at the wall in the hopes that it will stick. It won't stick, civilization will fall, the schools will close and the young men and women who are attending them will have to grow up and leave the playground behind.

      --
      -1 Uncomfortable Truth
    5. Re:Student effect on economy by zolltron · · Score: 5, Interesting

      The city is just acting stupidly by threatening to tax the students and tuition fees. It should simply reduce police and fire services to the univ neighbourhoods and ask the univs to hire private security for protection and refuse to maintain things like synchronized traffic lights and traffic by pass and other such things.

      They do. Both CMU and Pitt have private police forces. And you don't think that things like Pitt games bring venue to the city? The city seems to think so.

      Also it should charge market rates for their sewer connections, water supplies and use of public spaces for utilities. The univs will come back begging to give up their tax exempt status and agree to pay real estate taxes like all other residents and businesses are paying. In fact if their tax exempt status is revoked, almost all the businesses and private property owners will see a big reduction in their tax bills.

      I would hope you think we should also charge churches real estate taxes. I feel pretty confident all the churches take up more real estate than the universities. I wonder what the public reaction to that would be?

      Blame the greedy CMU that charges 48000$ a year from their students,

      Greedy? CMU has a *tiny* endowment compared to their status (only 10% of their operating budget). None of student tuition goes to the endowment, its all used to operate the university. And, of course, many students seem very happy to pay it. I wish that universities didn't have to charge that much, but I think it's unfair to call CMU greedy.

      refuses to bear its fair share of the cost of providing civic services passing the burden on the shrinking tax base.

      It's not the shrinking tax base that's to blame. Its the city mismanagement of it's pension fund. "That need stems from decades of questionable management of the city's pension fund, which holds around one-third of the $899 million it should to cover future obligations."

    6. Re:Student effect on economy by Smallpond · · Score: 3, Informative

      CMU already has a private security force, maintains private roads, pays for garbage collection and pays the salaries for police details when they use public spaces. What makes you think they don't pay market rates for sewer and water? You think they are free? Private property owners near a university have higher than average property values due to the demand from students and staff. They would drop dramatically if the university left. You think that would make the owners happy? You should consider getting a college education.

    7. Re:Student effect on economy by Sir_Lewk · · Score: 4, Informative

      the city would be a run-down industrial dinosaur like Pittsburgh or Detroit.

      Actually, Pittsburgh has managed to revive itself very nicely in the past few years, they really managed to clean up and re-image themselves after their steel industry went kaput. It is no longer really fair to compare it to Detroit, which is a shithole now more than ever.

      --
      "linux is just DOS with a UNIX like syntax" -- Galactic Dominator (944134)
    8. Re:Student effect on economy by MagusSlurpy · · Score: 2, Interesting

      Pittsburgh does have an income tax. I'm not sure what the scale is for residents, but non-residents pay 1%.

      --
      My sister opened a computer store in Hawaii. She sells C shells by the seashore.
  3. Wrong! by amiga3D · · Score: 4, Insightful

    Students bring tons of money into an area. This fool is going to drive the students to another city. Heh....I wonder if he talked it over with the Universities before he did it?

    1. Re:Wrong! by commodore64_love · · Score: 3, Interesting

      After thinking about it, I bet the Mayor doesn't care about the truth. He simply wants more money, and if he can sell the average, not-so-bright Pittsburgh voter on the idea that students are "getting a free ride", then he can start vacuuming wallets and making himself... er, his budget wealthier.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    2. Re:Wrong! by CastrTroy · · Score: 3, Insightful

      Also, many students who go to school in a city, are more likely to stay in that city to work. If you don't have any college graduates living in your city, your city will quickly devolve into an uneducated mess. I learned that playing SimCity. Surely they can figure this one out.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    3. Re:Wrong! by THotze · · Score: 3, Insightful

      It's funny that you mention this in the context of Pittsburgh -- Richard Florida wrote a book called 'The Rise of the Creative Class' about that theory -- that having college students gives way to an educated population and a class of creative professionals, from high tech to high finance, that builds prosperity. But Florida's research started when he noticed that he was surrounded by smart, capable young students at CMU, none of whom would be there a year or two after their graduation. His book (with methodology that's easy to critique) tries to show that it's more than just colleges that you need to retain college graduates. You can dispute Florida's findings -- that you need things like bike paths to keep college grads, but his inspiration, that college students leave Pittsburgh, is generally pretty true.

      Finding out how to keep college students would go a long way towards solving Pittsburgh's problems -- and kicking them in the pants when they're poor students probably isn't a good way to do that. As a side note: poor college students can frequently get almost fully funded between grants and loans -- including a fair living stipend. If they can't get such financing for the $400 tax, then that's a real burden for the already less-advantaged college studnets trying to make a future for themselves.

  4. I'm no master politician but... by PingSpike · · Score: 5, Funny

    ...wouldn't just raising the booze tax accomplish the same thing?

    1. Re:I'm no master politician but... by Sheepeep · · Score: 2

      Yeah, but he has to sell the idea. I'd wager that a lot more people drink booze than go to colleges and universities...

      --
      If your idea looks good on paper, you need more paper.
    2. Re:I'm no master politician but... by The+Ultimate+Fartkno · · Score: 5, Interesting

      Easy. Just pander to the people who a) don't drink, or b) pretend that they don't. "Sin taxes" are becoming increasingly popular among the holier-than-thou voting crowd who look at it as a way to get everyone else to pay a tax increase while they get off free because "it's bad for you! You deserve it!"

      "First they came for the smokers, and I said nothing because I was not a smoker. Then they came for the McNuggets and suddenly I cared because ZOMG MY FREEDOM!"

    3. Re:I'm no master politician but... by kamikasee · · Score: 2, Informative
    4. Re:I'm no master politician but... by TheRaven64 · · Score: 2, Informative

      Deregulating alcohol sales a bit would help with that. It's been a few years since I was in Pittsburgh, but last time I was there you could only buy beer and wine (in bottles, rather than to drink immediately) in a few places, most of which weren't open in the evenings or at weekends. As a brit, it was weird finding supermarkets with no alcohol section (although there is an absolutely incredible cheese shop that makes me forgive any other retail oddities in the city). If you want to pick up a bottle to take to a party, make sure you plan a few days in advance.

      I found it easier to find beer in Salt Lake City than in Pittsburgh. The beer in Salt Lake City was better too...

      --
      I am TheRaven on Soylent News
    5. Re:I'm no master politician but... by antibryce · · Score: 2, Interesting

      I'm not sure if you're aware and making a joke about it, but Pittsburgh recently got an alcoholic drink tax. 10% on every poured drink.

      The city is going to have to continue raising taxes everywhere it can, because we've had decades of really bad management.

  5. pay their 'fair share.' by commodore64_love · · Score: 5, Insightful

    They already do shithead Mayor. Students pay:

    - property tax (included in the school's tuition and the dorm room rental fees)
    - sales tax (by buying local products)
    - gas tax or road tolls (when they drive around)

    This story reminds me of Baltimore City Council, which keeps trying to tax neighboring counties on the theory that suburban folks work in the city, or visit the Raven stadium, but don't pay taxes. (Except that they do - via state income tax and sales tax and providing income to stadium/restaurant/other inner city workers.) Same stupid first-order level of thinking. These politicians need to dig deeper.

    --
    "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    1. Re:pay their 'fair share.' by nycguy · · Score: 4, Insightful

      These politicians need to dig deeper.

      They are...into your pockets.

  6. Politicians always come up with a bullshit reason by nanospook · · Score: 3, Insightful

    We are going to tax you because.. "blah blah blah blah". No one believes them because they will then turn around and "waste" money the next time. We fought the British off and then turned around and just did it to ourselves. If they are short of money, maybe they should get some higher education "smart" people from MIT to look at "innovative" ways to cut costs or do things "smarter" and "cheaper". Any corporation worth its salt has this approach and sells it to their employees as well as a corporate standard. Better faster cheaper. Instead we have the politicians (who are not living in a dingy one bedroom trying to get an education, maybe raising a kid or working 3 jobs) who keep the status quo the same year after year and show no innovation toward bettering the lives of the people. They stifle innovation and change just by their very existence.. Another example of government? The blinking yellow lights where you have to drop to 20 miles and hour during school hours. I drive a 30 minute commute and on that road, there are 3-4 areas like this. The problem though.. no kids! In the 3 years I've taken this route, I've yet to see any kids crossing the road at these locations. Yet every day, huge numbers of cars have to slow down, causing traffic congestion, wasting time, because some politician said "protect the kids, blah blah blah, do it for the kids". I'm not impressed.. we always go for bigger organizations instead of smaller ones that can do a better job in a localized area..

    --
    Have you fscked your local propeller head today?
  7. Students need to do a economic demonstration by Registered+Coward+v2 · · Score: 5, Interesting

    1. Get $2 bills and dollar coins and use them for all their purchases for two weeks.

    2. Then spend a week or two not spending a dime - ideally until they've saved the $400 tax.

    3. Publicize it. Write articles in the student paper and letters to the editor.

    4. Sit back and watch the results. Lather, rinse and repeat.

    5. Profit?

    Seriously, students need to show their economic impact on the local community. Using money not normally used will help make that point.

    --
    I'm a consultant - I convert gibberish into cash-flow.
    1. Re:Students need to do a economic demonstration by magsol · · Score: 3, Insightful

      There was a similar attempt made in Pittsburgh several years ago. The student governments from all the universities in the area - UPitt, CMU, Chatham, and so on - all got together and set up a demonstration strategy that involved 1) spreading the word about the student tax by posting representatives at locations in the city frequented by students, and 2) encouraging students not to go to bars, liquor stores, or clubs.

      Within 10 days, at the prodding of local bars, clubs, and package stores that had lots the vast majority of their clientele, the Pittsburgh council dropped the student tax proposal.

      If we can pull off a similar economic demonstration, like the parent alludes to, then I suspect we'll have trouble telling this Mayor what a moron he is.

      --
      "I'd just like to emphasise that taking a million years isn't a metaphor here..." -Rich Bradshaw
  8. Re:If anyone else but the government collected tax by SydShamino · · Score: 2, Interesting

    Tell that to my HOA.

    --
    It doesn't hurt to be nice.
  9. reality: students are constantly fucked over by Anonymous Coward · · Score: 2, Insightful

    It makes no sense to me why when budgets need to be slashed it's always the students who get it first. In California, students just had their tuitions hiked 32% per semester.

    It's insane and incredibly backward-looking. CA has a $20+ billion budget shortfall, and an insane political process that requires a supermajority vote to pass a tax increase-- or any budget at all.

    As a result, anyone can block anything that even hints at revenue collection, and it's a total clusterfuck.

    And students are the first in line to feel the pain.

    (don't tell me how cutting taxes stimulates the economy and raises money and the laffer curve and supply side and fleeing jobs and all that... CA's economy has been "stimulated" in this manner for a generation, and it's still fucked.)

  10. wow by WindBourne · · Score: 3, Insightful

    Something is really wrong when you tax a student while just having given massive tax cuts to the very rich in the last 7 years.

    --
    I prefer the "u" in honour as it seems to be missing these days.
    1. Re:wow by Anonymous Coward · · Score: 3, Insightful

      Pittsburgh gave massive tax cuts to the "very rich" recently?

  11. Priorities by six11 · · Score: 4, Insightful

    As a CMU student (sort of), this doesn't surprise me, and I invite Luke Ravenstahl to kiss my poor ass. Considering this guy prioritizes money in the most bogo-riffic ways (e.g. spending hundreds of thousands of dollars on fancy trash cans sporting his name) it seems clear he is not and has not been fit to run the city.

    Pittsburgh's new economy is fueled by the universities*. Everybody knows this. Taxing the students---those people least able to pay---is akin to cannibalism.

    Of course, what will happen is students will just borrow a bit more and stack on a little more debt. So maybe Luke's idea is to get students to hedge their futures on his present financial problems.

    * And the Steelers

  12. Oh the Burden of Soon to be Educated and Employed by knapper_tech · · Score: 3, Insightful

    Lifeblood sucking students who contribute nothing to society and ruthlessly download music and movies must pay their toll just like all the rest of us hard working people with income. We all had spare change during school to throw at the municipal government. Why can't they?

    And while we're at it, we need to tax other non-contributing members of society who place a burden on social services. I'm all for a tax on K-12 students, a tax on pre-schoolers, a tax on the disabled, senior citizens tax, and a tax on people who have crimes committed against them.

    After all, with all the student financing available, they'll just pay it with loans right? So it's like we're actually taxing their future income!

    --
    "There are some people that if they don't know, you can't tell them." ~ Louis Armstrong
  13. Happning in Providence Too by KevinIsOwn · · Score: 3, Informative

    The Mayor of Providence has proposed a similar tax in providence, although it would "only" be $150/student as opposed to $400. The arguments being made in both cities seem to be exactly the same: Students need to pay their "fair share". I'm kind of curious how we don't already pay our fair share, though, given that anyone who lives off campus pays property taxes and we bring millions into the local economy. (And in Providence, we're all the local economy has left)

    Now I'm not one to go shouting about the Government and taxes, but student taxes are very clearly a form of regressive taxation. It just doesn't make sense to be trying to take money from a group of people who don't have all that much of it in the first place. But that seems to be the trend of taxation lately, more and more regressive so rich people can keep all of their "hard earned" money.

    1. Re:Happning in Providence Too by cptdondo · · Score: 2

      Not only that, but the vast bulk of tuition is from out of the local area == free money to the local economy.

      Students get money from gov't loans and grants, mom & pop, and almost none of it from the local area. Even most opn-campus student jobs are funded by outside grants. So at a guess each student brings in something like $30K a year into the local economy - that costs the city almost $0 to generate. 3.7 students (the size of the average family) bring in $117,000 - that's a pretty high income bracket.

      So do some basic math, Mr. Mayor. Maybe the university doesn't pay taxes, but students are a huge cash cow for your town.

  14. Churches by Stiletto · · Score: 4, Insightful

    Yet, we're still not taxing churches...

    1. Re:Churches by Grygus · · Score: 3, Insightful

      Well historically pissed-off students get shot and run over by tanks. Pissed-off religious groups gruesomely kill their enemies in operations ranging from single-man strikes to multinational wars. Which group do you want to take on?

    2. Re:Churches by Doctor_Jest · · Score: 2, Interesting

      While that is indeed true (megachurches are obscenely wealthy), for every megachurch, there exist tons of poor churches (inner-city, rural, etc.) that do not have two nickels to rub together, much less money to have TV equipment and fancy light-shows. Yet they provide a necessary and valuable service to their community through outreach, soup-kitchens, etc. The megachurches are simply monuments to a pastor or denomination's ego. It's funny how the megachurches are missing the point of the Christian principle of helping those in need, and the shunning of personal wealth and overt consumption. (but that's for another thread...)

      So I propose the same tax system we have for Income tax (federal at least). If the church brings in over a certain amount, their tax rate is X. For those churches that scrape by in poor neighborhoods, let them get their money back after filing. Of course, like income tax on individuals, this is ripe for abuse, but since we have IRS auditors, that shouldn't be too much of a problem to audit churches. (Of course we'd need to reform that whole private books thing...) I cite the recent Senate inquiries into Kenneth Copeland's monstrous ministry, one that REALLY seems to be a church based around the mission to make the Copeland's rich. (He, and the ministry, refused to release financial records to the feds... even though most of his contemporaries did so without incident.) The whole lot of the "name it-claim it" denomination are nothing more than modern day Pharisees. (but that's for another thread too..heh.)

      OR, we could simply get property taxes from them... and mega-churches would be, by their very location/size, on the hook for more taxes than the 1st Street Missionary Baptist Temple that sits next to a vacant lot full of rubble in a distressed part of the city (hypothetical, but representative of many small neighborhood churches.)

      I prefer the latter, myself. Taxing donations seems like it could be ripe for taxing ALL non-profits, and though some are scams, the legitimate ones who do good in their respective communities (including churches) would take a revenue hit they can ill afford even in good times, much less in the current craptacular economic situation. :)

      --
      It's the Stay-Puft Marshmallow Man.
  15. There are easier ways to tax students! by onionman · · Score: 2, Insightful

    In our university town there are already taxes in place which are aimed at students without directly naming them as the objects of the laws. Restaurant taxes, Alcohol taxes, Property taxes on rental units, Parking law enforcement strategically biased to certain areas, etc. The Mayor in question really isn't too bright if he's being so direct.

  16. Why don't they tax. . . by RazorSharp · · Score: 3, Funny

    terrible towels? A 5-10% excise tax on terrible towels would probably bring in millions.

    --
    "From the depths of my skeptical and rationalist soul, I ask the Lord to protect me from California touchie-feeliedom."
  17. How about some other ideas? by SleepyHappyDoc · · Score: 4, Funny

    Why not a politician tax, somewhere around 1% of their annual income, for the privilege of being a politician?

    If it's good for the goose, it's good for the gander.

    --
    Stasis is death. Embrace change.
  18. The whole story... by sugapablo · · Score: 4, Insightful

    The problem is, in Pittsburgh the two major enterprises/employers are colleges and hospital systems. Both non-profit and both tax exempt. They own a tremendous amount of land (tax-free) employ the most people (tax free) and use up a tremendous amount of city services (such as police, ambulance, fire, water, sewage, etc, all tax free). The city has been trying for years to get the universities and hospitals to pay something, ANYTHING to help the city with its budget situation. In other cities where non-profits make up a large percentage of the area, the non-profits usually contribute something in terms of "voluntary payments", such as in Boston. What the mayor is doing, is trying to pressure the universities to come to the negotiating table to help support the city in its time of financial need, using other major cities with major university systems as a model. So far, the universities and hospital systems have refused. (Keep in mind, our major hospital system is UPMC (University of Pittsburgh Medical Center). Luke cares little for this tax and doesn't want it to pass. He want to use it to cause a big firestorm (which obviously it has) and force concessions. We'll see if it works. PA State Reps are already proposing laws to prevent the City of Pittsburgh from being able to tax students directly.

    1. Re:The whole story... by DeadCatX2 · · Score: 2, Informative

      I live in Pittsburgh and I'll attest to the fact that downtown Oakland is pretty much CMU, Pitt, and UPMC, and a few establishments that cater to students. There really isn't a whole lot more besides that down there...bunch of bars on the other side of the river in South Side, though.

      I'm actually quite surprised that the universities are so completely tax free. Certainly, though, off-campus students are paying property taxes and stuff, yeah?

      --
      :(){ :|:& };:
    2. Re:The whole story... by Weezul · · Score: 2, Informative

      Fine, but I'd still hope the non-profits play hardball and the city loses money in the long run. Pittsburgh's institutions are not nearly so well endowed as Boston's. If they pass the law, institutions like MIT & Harvard will take an interest in the court case. I'd expect that eventually the courts will decide that taxing the users of the services of non-profits is unconstitutional.

      Anyway, Pittsburgh has no reason for existing without those non-profit institutions. I assume the city has just failed to capitalize upon their presence, possibly by not offering tax havens to university incubated start ups, etc. Otoh, this move will embitter the student population, encouraging more to depart Pittsburgh upon graduation.

      In fact, all local governments have extremely over bloated budgets from the bubble, that extra money largely flowed into non-essential government spending, but local governments usually threaten to cut essential spending over non-essential, just as an excuse to raise taxes. I'd think the cleanest solution is capping the city budget at existing levels, open classify all departments as essential vs. non-essential, and say that all cuts must effect non-essential twice as much as essential. All these universities instituting tuition hikes should institute similar approaches to cutting costs.

      --
      The Christian religion has been and still is the principal enemy of moral progress in the world. -- Bertrand Russell
  19. US doens't want students by googlesmith123 · · Score: 3, Insightful

    In a time such as ours. Where so many people are loosing their jobs. And most of the people who lose their jobs have no education. Why then would your want to tax people trying to get an education when you know how much more tax a person with an education is going to pay than a person without an eduction.

    In Norway for instance education is free. Yes FREE. We have excellent universities. For instance, Oslo University ranks at 101 at topuniversities.com. Not only though is it free to study, but the government pays you around 15000 NOK for every semester you complete (for full time students) (2 semesters a year). And not only that, but they give your a further 30000 NOK in loans (per semester) that are interest free until 1 year after you complete your studies.

    The way the US treats it's people still puzzles me. Surely putting a strain on people who already have little money to live for just sounds like greed to me.

    --
    Say NO to unpaid Internships!
    1. Re:US doens't want students by Quantumstate · · Score: 2

      I think his point is that students who tend to have a small amount of money shouldn't be taxed since this is a regressive tax and discourages people from poorer backgrounds from going to university. In the UK we have a fairly similar situation where the government will give you loan and grant money. The difference is that the amount fo money which you get is dependent on your parents income so people with parents earning >£60 000 get £3000 loan but people with parents earning £25 000 get £3000 grant and £3500 loan. The figures are approximate and there is a sliding scale between the limits, also everybody gets a loan to cover tuition fees (£3225).

      We have very good universities in the UK. topuniversities.com shows the UK as having number 2,4,5,5. VAT is at 15% (will go back to 17.5% in January) but you do not pay VAT on food or books so for a lot of students (well me at least) most fo my spending doesn't come under VAT.

  20. I will. by NoYob · · Score: 5, Insightful

    (don't tell me how cutting taxes stimulates the economy and raises money and the laffer curve and supply side and fleeing jobs and all that... CA's economy has been "stimulated" in this manner for a generation, and it's still fucked.)

    The problems that California have is the result of spending more that it earns. It's as simple as that. The economy was booming and tax revenues went through the roof because of it. Their tax policy, as far as income was concerned, wasn't too bad. Unfortunately, on April 15th in past years, the California legislature sees that huge pile of cash come in and they spent it thinking that California's boom will last forever. The Legislature, especially the liberal Democrats, have no clue about saving for the future or any clue that times do change and there are downturns in an economy.

    Every time someone had some sort of project and regardless of its merits, they put money into it. Look now, when they want to cut spending, regardless of where, some special interest protests saying that they are important and the legislature needs to cut somewhere else.

    If they had a responsible fiscal plan instead of spending every penny that came in they wouldn't be in this situation.

    Laffer said that reducing taxes stimulates the economy as long as government reduces spending to match inflows. The California legislature was too stupid to realize that and they were too beholden to the special interests that always have their hands out for government money.

    --
    It's NOT me! It's the meds! I'm on 1000mg of Fukitol.
    1. Re:I will. by Anonymous Coward · · Score: 2, Insightful

      The economy was booming and tax revenues went through the roof because of it.

      OP here. See, I specifically requested that the conversation not degrade into these tired arguments, but sure enough, here they are. Now I gotta do a lot of typing. Sigh.

      The economy was booming? Given your lack of specifics I'm going to assume you're talking about the last eight years. Guess what-- the economy was not "booming"-- the economy was in a bubble, especially in California. There was an illusion of a "boom", but in California it was built on private speculation, risk-taking, and fraud, which all ultimately collapsed.

      Had Californians been taxed appropriately during the good years, they could have used that revenue to pay for things, in which case the crisis would be less severe. OR, they could have saved the money for a rainy day, in which case now they'd have had better means to get through this crisis. Had Californians had a sane property tax like a normal state rather than Prop 13, things would not be so bad. But the Republicans have held the budget hostage for year after year because of the supermajority needed. The Special Interest you're talking about is the GOP party.

      Laffer said...

      Thanks for mentioning Laffer. We can agree the tax rate should be somewhere between 0% and 100%. In California's case it needed to be higher than it is now, esp. concerning property taxes. For Republicans, it ALWAYS needs to be lower than where it is now, ALWAYS. On principal, no matter what the circumstances. Always lower. Which is insane.

       

  21. Re:Politicians always come up with a bullshit reas by commodore64_love · · Score: 2, Interesting

    >>>We are going to tax you because.. "blah blah blah blah". No one believes them because they will then turn around and "waste" money the next time.

    +1. Here is your typical Pittsburgh (or Philadelphia) politician in action: Timestamp 1:00 http://www.youtube.com/watch?v=yS4rRl5B7NI

    --
    "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
  22. Re:"Fair share"? by Grygus · · Score: 2, Interesting

    Really? Taking care of roads is okay but taking care of people is not? How is it that a government by the people, for the people, and of the people has no responsibility to the people? I think most people who object to universal health care do so because it's not the way things have always been done, and not because it's illogical or inconsistent with our values. If we could take universal health care for granted because it had been around since 1780, nobody would question its value. Can you provide a reasoned explanation for why this is bad? I haven't seen a good objection, by which I mean one that doesn't rely on an appeal to emotion, scare tactics, or making the issue completely personal.

  23. Short Sighted by KalvinB · · Score: 2, Insightful

    When Arizona State called asking for money I told them to tell Michael Crow I hope he's happy with his tuition hikes because he's never getting another dime from me. The way I see it, he already stole about $6000 dollars from me (they violated the state constitution to make those increases). I'm not going to voluntarily give more and my daughter will most likely not attend ASU. We're putting away money so she can go anywhere.

    Students get a higher eduction, get better jobs, make more money, and pay more taxes which gets put back into the schools.

    If we want to focus on "fair" then homeowners with children who don't go to public school need to be except from public school related taxes.

    If the government wants their money "now" they better be prepared to lose money later.

    1. Re:Short Sighted by AK+Marc · · Score: 2, Insightful

      If we want to focus on "fair" then homeowners with children who don't go to public school need to be except from public school related taxes.

      Great, I'll keep my kids out of school and pocket the money, then, when they hit 18, I'll kick them out and they'll end up in the prison system or something and then they'll be your problem for a whole lot more than if you'd just educated them.

  24. Re:Politicians always come up with a bullshit reas by zotz · · Score: 2, Interesting

    Is it time to go back to that "no taxation without representation" idea and a big way? I mean as in really... *no taxation without representation* - if they do not let you vote, they can't tax you.

    And forget all the justifications what will be raised as to why you *just have to tax* those who can't vote.

    all the best,

    drew

    --
    FreeMusicPush If you want to see more Free Music made, listen to Free
  25. Social Inequality in Action by chaynlynk · · Score: 2, Insightful

    What about the 40 year old guy who works full time and goes to classes in the evening? Is he not paying his fair share by being an otherwise typical citizen of Pittsburgh? I see quite a few people that fit the scenario where I go, which has only increased due to the economy. So the county sheriff that wants a justice degree to get a pay raise has to pay the city an extra $400 to do so? What about the single mom that barely has time to go to school between raising a kid and working two jobs? She's now paying her fair share? This is social inequality in action.

  26. Re:Politicians always come up with a bullshit reas by DerekLyons · · Score: 2, Insightful

    We are going to tax you because.. "blah blah blah blah". No one believes them because they will then turn around and "waste" money the next time. We fought the British off and then turned around and just did it to ourselves.

    We fought the British off (partly) over the issue of taxation without representation, but that isn't the problem here - as we have elected the people who are currently taxing us. (And in most cases continue to re-elect them.)
     

    If they are short of money, maybe they should get some higher education "smart" people from MIT to look at "innovative" ways to cut costs or do things "smarter" and "cheaper".

    Here, you hit the nail on the head. Most people live in a reality distortion field where governments do nothing but raise taxes and 'waste' the money. Under the influence of this field, they believe the government can indefinitely raise the level of services provided without raising income while (seemingly) being free of the influences of inflation and rising prices that the rest of us are. There's always 'waste' to be cut and money to be saved without ever cutting services.
     

    Any corporation worth its salt has this approach and sells it to their employees as well as a corporate standard. Better faster cheaper.

    Any we've seen the results of this in corporate America... Jobs going offshore, ever shoddier products, ever lower quality.
     
    Here, the same reality distortion field as above is at work - people have this odd belief that they can spend less while getting the same quality and without the people on the production lines having to work harder for less. At the same time, they insist the stocks in their 401(k), IRA, or other pension plan, go up in value indefinitely.

  27. It's Pittsburgh by tomhudson · · Score: 3, Interesting

    That's a way to dumb down the city.

    In other news, the mayor left for the weekend, and the average IQ of the city increased.

    You know how it is - every vilage has its' idiot, and Pittsburgh wants to be able to say "We're #1" about something.

    New slogan: Pittsburgh - it really IS the pits!

    Or maybe they heard that the economy is changing, with more part-time, menial, mindless jobs, and they want to make sure their future workforce isn't over-qualified.

    Or they want to make sure the supply of dumb voters increases.

    Or they heard about "higher" education, and "don't want none of that people getting high on shit on school grounds - if they got money for weed, tax 'em".

    Or the real explanation - they're broke, and figure that they can't tax the people who live there, because that means getting tossed out at the next election - so why not tax students who don't live there, can't vote, and are locked into a 4-year program?

  28. Seed corn by QuoteMstr · · Score: 2, Insightful

    "Eating the seed corn" is a folksy expression that means staving off hunger now by eating the seeds you need for next year's planting. I know it's a tired metaphor, but nothing in the English language comes close to describing how tragic it is when governments squeeze students. Education is what will bring us prosperity in the future. It should be the last think to be cut, after the military, police, fire department, road maintenance, research grants, foreign aide and pensions. When we cut education, we forgo a possibility of hardship today for the guarantee of irrelevance is decay tomorrow.

    Educate your population, and you'd be amazed at how many other problems you solve along the way.

  29. Russian Roulette by athlon02 · · Score: 2, Insightful

    Anyone else starting to get the impression that politicians across the country (especially federal ones) LIKE playing Russian Roulette with their careers lately?

    I say vote them out... if you don't represent ME and MY FELLOW constituents, then you have no business holding your office. To such politicians I say, "Consider yourself fired."

    </venting>

  30. Why does history have to keep repeating itself? by Degro · · Score: 3, Insightful

    This country is sounding more and more like every period history class. The rich increasingly refuse to pay any taxes. In response, the government, powerless against said rich people, turn on the poor even more.

  31. Re:Duh Mayor by RTS-8 · · Score: 2, Informative

    Good points. I'd add that both the Pitt medical researchers and the CMU professors have a choice of what city to set up their start-up companies in. If the city wants to get a reputation of playing rough, no problem...another strike against setting up a business in one of the least business-friendly places around. And, professors have a choice of where to do research. CMU and Pitt medical are always battling to get the best, and Ravenstahl's attitude will be noticed by job candidates (and current CMU/Pitt researchers) immediately. One point that has not been discussed much: $15 million of the $16 million the tax is expected to raise is earmarked by the mayor for the city pension plan (that according to the local paper this morning has been "questionably managed" - that is putting it mildly). Translation: tax the students and alienate the job-creating researchers to pay the bloated pensions of the cops who loved beating the students last month.

  32. Re:A reality check.... by Fallingcow · · Score: 3, Insightful

    Yes, because the many socialist democracies of Europe are well known for taxing students.

    Oh, wait, I got that backwards, they're well known for paying students while they're in school and charging them nothing for tuition.

  33. Pittsburgh really hates its students! by flajann · · Score: 2, Interesting
    I don't get it with Pittsburgh. First, they tear-gas and pepper-spray their students (http://pittsburghpolice.net/category/dorms/), and now they want to tax them to death.

    The "fair share" argument is a wash. Those students have been attending CMU and Pittsburgh University for decades, and only now they thought of taxing them?

    Plus, Pittsburgh has not learned the stern lessons of history. Raising taxes during an economic downturn is always a bad thing to do.

    I suppose Pittsburgh overran its budget with the "goon squad" it hired to mistreat the students during G20, and now it needs to find a way to pay for it. Gas'em, Mace'em, Tax'em. The Pittsburgh Way.

    Besides, if the students are buying goods and services in the city, they are already paying their "fair share" in taxes. This is just plain stupid.