The new NEA President is speaking truth to power. I wish the American Association of School Administrators and National School Board Association would support the NEA’s position on this issue. Associations representing “management” have planks in their platforms that mirror the NEA’s. We ALL want full funding for special education and support legislation that provides more funding and social services for children, for example. This isn’t about being “pro-union”, this is about rejecting practices that are not research-based and corrode the public’s support for public education.
Paul Krugman’s column in this morning’s NYTimes describes the latest development in profiteering:
…the tax-avoidance strategy du jour: “inversion:”… a legal maneuver in which a company declares that its U.S. operations are owned by its foreign subsidiary, not the other way around, and uses this role reversal to shift reported profits out of American jurisdiction to someplace with a lower tax rate.
Readers of this blog should recognize this as the same strategy that corporate tax dodgers use to pit town-against-town and state-against-state in their efforts to race-to-the-bottom on employee compensation… and local and state property taxes.
I believe two underlying principles that “everyone agrees with” make it impossible to change our attitude toward taxation. The first principle, repeated over and over again by BOTH parties in various shades, is the Reagan mantra: GOVERNMENT IS THE PROBLEM. If “everyone agrees” that government is the problem then all taxes are confiscatory and those of us who are being “robbed” by the government taking OUR money have sympathy with the government taking, say, the Koch brothers’ or the Walton’s money… and we don’t begrudge a company for taking steps to avoid paying these onerous taxes.
The second principle is that of shareholder primacy, whereby profit-making trumps any sense of corporate public responsibility. As noted above, this plays out in local and State governments as well as at the Federal level. Pull the curtain back behind any announcement of a corporation locating in a community and you’ll see a sweetheart tax deal.
Both of these principles effect public education. Over the past decades the term “government run schools” was coined, repeated, and entered into the lexicon as evidence that PUBLIC education can’t work because it is run by the government… and we “all know” that government is the problem. And when local corporate taxes are rolled back or limited the burden is shifted to either state sales and/or income taxes or local property taxes and when they start increasing the push back is inevitable… and is often to the detriment of schools, roads, and publicly funded services.
I keep waiting for some politician to make the point that we are all in this together and we need to share in the responsibility for improving our country by paying our fair share of taxes. Doing so would not hurt 99% of the taxpayers…. but for the time being, it appears that the majority of Americans don’t see it that way, in part because no one has taken the time to explain how the system works.