'In Revenue Shortfalls, Don't Fine The Poor, Tax The Rich' Say Patriotic Millionaires
"In Revenue Shortfalls, Dont Fine the Poor- Tax the Rich." Sept. 11,'19, Morris Pearl, Patriotic Millionaires Chairperson.
One afternoon in Georgia, a man lifted a $2 can of beer from a corner store. He was quickly caught, prosecuted, and ordered to wear a $1,000 ankle monitoring device as part of a plea deal at his own expense. The man, already impoverished, sold his plasma to try and make the minimum payments. When he fell behind, the court jailed him for not being able to afford it.
Cases like this sound like some farcical modern take on a Victor Hugo novel, but the awful reality is that they are all too common. Whats more, they are often directly correlated to state and local authorities refusal to raise taxes on their wealthiest residents.
That may sound like a stretch, but a recent report found that over 600 jurisdictions in the United States rely on fees and fines from criminal charges to generate over 10 percent of their revenue. In 200 of those jurisdictions, they account for over 20 percent of revenue. These jurisdictions are overwhelmingly rural, impoverished, and are often under threat of further budget cuts from their state governments. Not so coincidentally, they also tend to be located in states with regressive tax structures that place a higher share of the revenue burden on lower-income residents than their wealthy neighbors.
In most states, cities and local jurisdictions dont have the legal authority to enact income taxes and must rely heavily on state funding to keep public services up and running. In recent years, many state lawmakers have focused on slashing business and income taxes, leaving local authorities with a budget shortfall and few routes for raising revenue. In that bind, its easy to see why the most impoverished jurisdictions turn to fees and fines for revenues.
All this does, however is extract money off the backs of residents who already dont have enough, and perpetuate a cycle of inequality that scares away desperately-needed investment in these communities. As if relying on criminalizing your own residents isnt bad enough, the people who bear the brunt of these policy failures are disproportionately low-income people of color. Lower-income residents often cannot afford to pay the fines and fees from misdemeanor criminal charges like traffic tickets, jaywalking, littering, or the pettiest of thefts..
Thats bad enough in itself, but its far more disturbing when juxtaposed with many of these same governments refusal to look to the most obvious source of revenue: taxing the rich. In the 45 states with regressive tax structures, the top 1 percent end up paying the lowest effective tax rate, while the lowest 20 percent of incomes pay 50 percent more. This is both morally and fiscally irresponsible...
More, https://patrioticmillionaires.org/2019/09/11/in-revenue-shortfalls-dont-fine-the-poor-tax-the-rich/
*Patriotic Millionaires Website: https://patrioticmillionaires.org/
N_E_1 for Tennis
(9,734 posts)It may raise hope a little higher...paired with Elizabeth Warrens tax on wealth over 50 million a year...the middle class may be able to rebound.