Thursday, December 23, 2010
Open Letter to the NK School Committee
Clearly the US is falling behind globally. If we expect better scientists we need to improve science education. If we want more talented engineers and mathematicians we need better math and physics courses.
I would like to ask you if our schools are preparing students to become our best politicians and legislators? Is the educational system preparing them to become the political leaders our cities, states and country need to succeed in the future?
I can recall as a high school student that the most boring class I took was called 'civics'. Perhaps we are witnessing the consequences of that mistake. Is the school system creating excitement and respect among our students who will become our future leaders? Are we creating an atmosphere that excites and inspires?
I looked through the online curriculum at the NKHS Social Studies section and found nothing that relates to local government and contemporary local issues. Instead I found history. Certainly important, but it's not anything that will engage students with their real world as it surrounds and effects them today.
Perhaps I've missed something. I would love to be corrected.
Respectfully,
Tuesday, December 14, 2010
Just Wondering
On the other hand those who complain that it is wrong for young people to have to buy insurance so older people can have health care seems to indicate a certain level of, forgive me, stupidity. Do they really not know that is exactly how insurance works? Insurance companies make tons of money by collecting premiums from enough people who don't use it to pay for those that do, plus a tidy little profit.
Still there might be a legitimate constitutional argument against the federal government mandating insurance.
Perhaps instead the federal government can make it a requirement for federal reimbursement for health care contingent on a certain level of mandatory insurance required by those states. If they refuse to require health insurance for its citizens then they will risk forgoing federal reimbursement for health care.
Can't have it both ways.
Maybe It's Just Me.
Thursday, December 2, 2010
But the second, more important reason was, that here, in two letters, side by side, we see a larger national problem.
One author paints the unions as the victims of greedy corporations, doing the same as they do.
The other author paints the unions as villains out to destroy private enterprise and the public.
The facts suggest that there is truth and blame on both sides.
Public sector unions have made it difficult for municipalities to deliver services that people can afford. Compared to the private sector, their retirement benefits are most enviable and in some cases rather outrageous.
Their interest ultimately is not for the welfare of the people but themselves.
The corporate world complains that unions make it impossible for them to compete and that the unions are responsible for outsourcing jobs. Still, their profits are the highest in history.
Their interest ultimately is not for the welfare of the people but themselves.
One of the pillars of America is our court system. It is an adversarial system where justice requires the presence of a judge whose job it is to be sure the rules are followed and fairness prevails, and an impartial jury whose job it is to render a verdict after hearing both sides.
It isn't working well in the public arena. We are the 'jury' but we clearly don't listen openly to both sides of an issue; and the laws, which, like judges, try to assure the rules are followed, have failed miserably, replaced by lobbyists and donations from both sides.
Let us hope that both sides soon wake up and take a hard look in the mirror.
Sunday, October 31, 2010
Monday, October 25, 2010
Who is US?
Saturday, October 23, 2010
"It's the Economy Stupid"
Even if successful we will have failed most property owners because, with all due apologies to President Clinton, "It's the Revaluation, Stupid".
Revaluations are required to assure that buyers pay fair taxes on property they buy. It's fair for new buyers and should be done at least annually. (Triennially is better than every ten years but it's still not enough).
For existing owners however, revaluation means that thousands of homeowners could get tax increases even if spending is lower than the prior year. This is gross injustice to all existing owners and is simply unreasonable.
We can solve this apparent dilemma but it requires a willingness to revisit and re-think some antiquated ideas.
Please look at this 5 minute video and see if you don't agree.
http://www.youtube.com/watch?v=HdEU_aDr9XU
Wednesday, October 20, 2010
"Too Tired to Vote?"
It's election time and we are about choose the people that will govern us until the next election. It is both a privilege (one that too few people around the world have) as well as a responsibility.
Each check we make on the ballot deserves careful consideration and it's easy to do; the pens and markers don't weigh twenty pounds. Choosing the "master lever" implies that it is just too much work to mark each candidate. Our founding fathers would be turning in their graves if they knew, and I'd be ashamed to admit using it.
I'd go so far as to say it's this type of mindlessness or laziness that is responsible for the mess in which we find ourselves, both locally and nationally. We have only ourselves to blame.
So now we hear "kick the bums out". It's surely tempting and understandable, but it is just as wrong headed as that master lever. Being a newcomer or "outsider" is no assurance of integrity and competence, just as being an experienced politician is not an assurance of unethical behavior or incompetence.
Are all members of one party good or evil? Are all members of any group the same? Would my only qualification for a friend be that he or she is a member of a particular group? Heaven help us if so.
We have a duty to ourselves and our country to think about each candidate and vote accordingly.
Friday, October 1, 2010
When will we get it?
Thursday, September 9, 2010
Drugs in School
I agree with the senator that it's time to fight back against the prevalence of drugs in schools but setting up yet another school system for ex-addicts seems more like avoiding the root problem rather than facing it.
Maybe we would do better to revisit our drug policy and the consequences of bringing drugs to school in the first place.
Wednesday, August 11, 2010
Polarized Express
Tuesday, June 22, 2010
"Providence Property Taxes"
Friday, June 18, 2010
"Did I do it or not?"
Friday, June 4, 2010
"What Will it Take?"
Saturday, May 22, 2010
Special Interest v Common Interest
Tuesday, May 18, 2010
Sweet Tax is Sour
I too hate to see people abusing themselves by being so overweight so I can understand why legislators would like to curb obesity. But the tax proposals before the RI House and Senate miss the mark.
If we really want to improve Rhode Islanders' health the law would require that the tax money generated would be used solely for increasing education, nutrition and exercise programs. Adding a few cents tax to sweet drinks will simply further burden and mostly for the people who can least afford it.
It won't take too long for the added cost to become 'normal' and any possible behavior modification will slowly return to pre-tax levels.
Be honest. It's at least as much a fund raising effort as an effort to improve the public health. If we were seriously trying to improve health perhaps reducing the cost of those items we find beneficial would be more effective. How about targeted income rebates for milk, fruits, vegetables? I suspect it would be far more effective in changing eating habits in the long run.
We all know that the sweet tax will simply find its way into the general revenue stream for cities and towns and the people will remain overweight.
On a slightly different note I think there is a better way to inform people about the sugar content of foods. Instead of the abstraction of calories I'd recommend indicating sugar cube equivalents. It's much more impressive to see that a cup of apple slices contains 2 1/2 sugar cubes and a Snickers bar is like eating 13 1⁄2 cubes of sugar.
Wednesday, May 5, 2010
Why We Hate Property Taxes
An overlooked but vital aspect of the property tax problem is that there are two principles of fairness regarding property taxes that are mutually exclusive.
#1 A person who buys a $1 million dollar home should pay a fair tax on a million dollar home.
#2 The taxes people pay should reflect the budget needs of their town; e.g. if a town eliminates tax increases, property owners should not expect tax increases.
These basic principles can not co-exist because of REVALUATIONS.
Existing owners' property taxes can reflect the tax levy (Principle #2) but only when there is no revaluation. Buyers of properties of (usually) increasing value however, are taxed too little on assessed values thus ignoring Principle #1.
To correct this inequity for new owners, we revalue every three years. As a result, existing owners will pay taxes unrelated to tax levies.
In fact a town could even declare a moratorium on tax increases yet over 50% of existing property owners would pay higher taxes due to revaluation, violating Principle #2.
The typical reaction to high taxes is to look for spending cuts but as I've explained, the results would disappoint the majority of tax payers . This does not bode well for peace, harmony and enthusiastic citizen participation and cooperation.
Saturday, May 1, 2010
Bernie "Madoff" with other people's money
Wednesday, April 28, 2010
Thinking out Loud
If we increase taxes somewhat on the wealthy they will cease working hard, produce less and the tax revenues will decline. This assumes that the wealthy, the successful, will change into low achievers and stop trying if they earn less.
That's as simple minded as the assumption that bestowing benefits on the poor will change them into entrepreneurs and high achievers.
We can't change the nature of people simply with money incentives alone.
Wednesday, April 21, 2010
"I'm shocked, shocked to find that gambling is going on in here!"
Monday, April 5, 2010
It's a Choice
Theodore Gatchell's article in the Providence Journal on health care reform made several legitimate points that highlight the choices between the conservative right and the liberal left.
"Over time, however, rules become a way of shielding bureaucrats from having to use judgment. For every problem that arises, the answer is a new regulation."
Indeed. Who can deny the truth of this statement? The income tax code is a perfect example of government's infinite ability to complicate our lives. Of course it isn't only conservatives who pass these laws although one could get that impression from the article.
"More rules inevitably require more bureaucrats to interpret them with an attendant higher cost. If you think health care is complicated now, wait until the bureaucrats begin to crank out the reams of regulations that are certain to come."
Again, there is much truth in this statement which also serves as a mantra for those who resist and object to all governmental involvement not specifically mentioned in the Constitution. Tea Baggers?
It appears that the conservative right believes best arbiter of what's right and wrong is the free market and when bureaucrats interfere there results inevitably inefficiency, waste, corruption and a disregard for the Constitution.
Again, much is true.
When we consider which beer, which movie, which sneaker shall succeed in the market place, the free market is probably best left alone. The public should be allowed to make free choices in a free market to determine winners and losers in such contests.
If all decisions were only so trivial, so superficial. But they're not. In the process of free market competition the corporate bottom line dominates the decisions made by business executives and without government intrusion, important data may be hidden as people choose among things much more important than which oven cleaner, which detergent, which hairspray shall win out.
Was it the free market that publicized the link between lead based paints and brain damage? the link between tobacco smoke and lung cancer? the link between saturated fats and heart disease? Would corporations competing in free markets print this information on its products unless required by government?
Or is it more likely that millions of people would have to become ill or die before people could make informed choices in an unregulated free market?
The struggle between the right and the left seems to boil down to this:
Is it worth the cost in human sacrifice to respect the sanctity of privacy and let people, unfettered by intrusive and inefficient government rules and regulations, use their free market choices to provide the best ultimate decisions for themselves?
Or should we accept the inefficient, intrusive and expensive government bureaucracy to protect the public from harm that could otherwise result from a private sector where the fundamental obligation is to its executives and stockholders?
It seems that the right favors the first and the left favors the second.
Maybe it just me.
Saturday, April 3, 2010
Property Tax POLL
- Assume your town has managed to freeze the tax levy indefinitely.
- Assume your tax assessment is accurate.
Thursday, March 11, 2010
Take Your Pick
Monday, March 8, 2010
Sunday, February 28, 2010
Can We Talk?
At a recent meeting with the Chief of the Rhode Island Division of Municipal Finance, to propose an idea for changing from a market value base property tax to a 'taxable' value based property tax, I was presented with some of the very serious issues facing the state and its municipalities, in effect challenging whether the proposed change would help the property tax problem.
Some of those issues were, (1) the large increase in foreclosures, (2) those who simply find it increasingly difficult to make their skyrocketing tax payments, and (3) the concern that the proposal would mean people might be living in identical homes paying different property taxes.
Each of these deserves an answer.
1. Foreclosure occurs when the owner of a property can't meet his/her mortgage payments. Those mortgage payments are established at the time the mortgage is created and is simply a loan using the property as collateral. The borrower and lender (bank) choose a mortgage that will satisfy the borrower's ability to make the payments.
There are things than can change the ability to make payments; job loss, unexpected medical bills, either of which could reduce one's ability to make mortgage payments. The actual market value of the property has little to do with the mortgage as described, unless...
There are other situations however, when the owner of a home that has appreciated in value is tempted by a lender to take out a second mortgage to finance say, a vacation or a new car. The increased value is treated as if it were like money in the bank and, if necessary, the owner can sell for the higher value and pay off the loans, maybe with some money left over. Tempting. As unscrupulous salespeople urged buyers to take out these loans these mortgages proliferated like crabgrass in August, producing enormous profits for the people who pushed paper from one place to another.
Too often the "free money" added to monthly payments more than the owner's ability to meet obligations. Add in increased property taxes based on the higher market values and we have the makings of a serious problem: people began selling their homes to reduce monthly payments. The increase in selling forced down market prices as more people began to panic. They to tried selling their homes quickly to grab those 'high' market values, only to find they weren't there. Their homes in some cases weren't even worth what they paid for them and many were forced to declare bankruptcy.
This downward spiral only increased the disaster that was beginning to unfold as the banks holding those mortgages found themselves with worthless paper (toxic assets) and their incomes fell as more and more people defaulted on their loans.
And yet the market values of homes are assumed to be the best and fairest metric upon which to tax people to pay for municipal services. Incredible.
The RIGHT proposal of using 'taxable' values instead of market values will not immediately fix the above problems. Of course, neither will the continued reliance on market values. But going forward one must consider if we will be in a better place if we make the transition to a taxable value based system or if we continue using market values.
2. This brings us to the individual who is simply struggling to pay taxes on an increased property value. With the expected drop in values one might expect some tax relief, but this is anything but certain. If values drop town wide, as they have recently, the tax rate will simply rise to produce the needed revenue. In fact revaluation to market prices produces thousands of people whose taxes drop as those whose taxes are too high, regardless of the overall increase or decrease in property values. It's the nature of swings in market values.
The more important question is this: Would we be in this position at all if we were taxed on 'taxable' values for the last twenty years instead of market values? It would be much better to pay taxes limited to 4% increases for the next twenty years rather than continue with the market based system which brought on current problem in the first place. It seems we have an opportunity to rewrite history: today is the future's past.
3. Now for the last concern, that under a taxable value based system there would be people living in houses of equal value, possibly side by side, paying different taxes. Quite true. For many it is hard to accept and seems unfair.
Consider. If Bill and Joe buy property at the same time for the same price, they should pay equal taxes.
But what if Bill sells his house to Nate for a much higher price than he and Joe originally paid? Should Nate simply pay the taxes that Bill was paying? Of course not. Nate should be taxed based on what he paid, just as Bill and Joe were, and to make sure Nate pays a fair tax on his market value we must use a rate calculated from the market value of the entire town.
But now he and Joe will not be paying the same taxes would they? Nothing wrong with that. But our reevaluation system insists that everyone be reassessed to market values. If Joe's property increased in value the same as Nate's, Joe will pay the same tax as Nate. The reassessment has decided that Joe is in fact the same as Nate, but he is not. Assessing someone's property greater than (or less than) the one he bought, doesn't make him equivalent to the person who just spent that amount.
The use of 'taxable' values instead, would increase the value of Joe's house and every other current owner, the same percentage as the tax levy, not the market place. For example, a 3% tax increase would increase everyone's tax bill by approximately 3% while new owners would pay based on market value. Both owners are treated fairly. The following year the new owner becomes an existing owner.
There is nothing inherently unfair about people in similar homes paying different taxes to support government; we do it all the time. We pay for state government and federal government differently despite living in similar homes and there is nothing immoral or unfair about doing the same for local government.
Is the proposed system perfect? No. Will it be better and more just for everyone? Absolutely. Check the RIGHTTAX website for more.
Saturday, February 6, 2010
Organizing some thoughts
- The free market is the best, most efficient way to allocate resources. The best ideas succeed, others fail. The best people succeed, others fail. Government should stay out of the way and let markets work because they have produced the most successful and powerful nation in history.
- The government has no business deciding how my earned money should be allocated. Politicians pretend to be concerned about the people but they act in their own self interest - to get reelected is their highest priority.
- People are neither commodities nor resources and should not be treated as such by market forces, which will neglect (even abandon) the weakest among us. Governments are necessary to insure the welfare of those who might not have the resources or ability to succeed.
- If social decisions are left to individuals, the least productive, least powerful face neglect. Government must make these decisions and allocate resources to protect the weakest.
Tuesday, February 2, 2010
Free Speech
However, can a corporation be subjected to the death penalty? Can a corporation even go to jail?
I submit that corporations are not the same as people and therefor are not automatically conferred with all of the same rights and protections as people by the US Constitution.
These differences needed to be considered when applying Constitutional protections to corporations and I believe that the Court was wrong in its recent decision.
Thursday, January 14, 2010
Term Limits
It seems to me that those very laws themselves should be also be made with the same principles in mind.
To paraphrase Judge Bruce Selya and Mr. Fitzpatrick, if a legislator has to stop and think, every time he or she decides an issue, about how that decision is going to play with the voters, that's got to be a substantial and negative influence on the decision making process. What's more, elected officials often raise campaign funds from lawyers and others with a vested interest in the outcomes of legislative deliberation which can be a corrupting influence that we really don't need.
It seems we have a huge challenge here. How can we remove the corrupting influences from democratic elections? Is it possible? Is it time to have a serious debate on term limits?