Post by notknowmuch on Apr 16, 2013 4:54:54 GMT -7
"Tax Freedom" may not be so free for Alabamians
By Dr. Wayne Flynt
By Dr. Wayne Flynt
According to the conservative Tax Foundation, April 5 was "tax freedom" day in Alabama. That is the day when Alabamians no longer paid every dime they earned to local, state, and Federal governments. Theoretically, after that day we were free to spend all we earn any way we choose. As might be expected in America's most conservative state, pundits and citizens congratulated each other on how lucky we are to live in "Sweet Home Alabama" instead of some liberal high tax state such as Washington, Oregon, Vermont, or Connecticut. Perhaps so.
But we may not have as much discretionary income left as we think. Taxes fund infrastructure without which a state's population drops steadily behind other states and countries in education and economic competitiveness. And there is also the "pay me now, pay me later" factor of increased social costs: prisons filled with illiterate or semi-literate inmates; poorly educated citizens who rely on welfare; a one million dollar legal settlement to a South Carolina family whose wife/mother was killed when a tractor-trailer spun a lose piece of asphalt on I-20 through her windshield; long lines at the Jefferson County Courthouse where thousands of people waste endless hours standing in line to transfer a car title or purchase a tag. The American Society of Engineers estimated in 2009 that Americans spent $67 billion annually on car repairs caused by shoddy road conditions. How much does graduation from a fine public high school or university add to our lifetime earnings? What economic penalty do we pay to live in a low tax state?
Those were the questions rattling around in my mind one March "Tax Freedom" day in the mid 1990s as I walked across the Auburn campus headed toward the library. Governor Fob James had just completed a press conference where he extolled the glories of tax freedom, noting that Alabama ranked number one among the 50 states and the District of Columbia because of our low taxes. After arriving at the library, I plunged into volumes of state rankings that listed just about every quality of life issue that differentiates states.
In order not to beat up on my state, I included Mississippi, Louisiana, and Arkansas, which trailed us in 2nd, 3rd, and 4th places with the lowest taxes. My hypothesis was that there would be a correlation between state expenditures on critical social, economic, and educational infrastructure and these states' quality of life.
Here are some of the standings for the four states. Infant mortality: 3, 5, 6, 18. Low birth weight babies: 1, 2, 3, 5. Children living in poverty: 1, 2, 5, 7. High school dropouts: 10, 12, 13, 17. Persons 25 years and older with less than a 9th grade education: 4, 5, 7, 8. Overall poverty rate: 1, 2, 10, 11. Median family income: 51, 50, 48, 42. Per capita income: 50, 49, 45, 40. Changes in real income between 1979-1989: 51, 49, 48, 42. Expenditures per pupil in elementary and secondary schools: 50, 49, 46, 44. Adults who completed high school: 45, 43, 41, 39. Adults who completed college: 43, 42, 40, 36.
So, next time a pundit extols our good fortune on "Tax Freedom" day, head to your nearest library (assuming it remains open and can afford the subscriptions) and check STATE RANKINGS and STATISTICAL ABSTRACTS OF THE UNITED STATES. What you discover may temper your celebration.
But we may not have as much discretionary income left as we think. Taxes fund infrastructure without which a state's population drops steadily behind other states and countries in education and economic competitiveness. And there is also the "pay me now, pay me later" factor of increased social costs: prisons filled with illiterate or semi-literate inmates; poorly educated citizens who rely on welfare; a one million dollar legal settlement to a South Carolina family whose wife/mother was killed when a tractor-trailer spun a lose piece of asphalt on I-20 through her windshield; long lines at the Jefferson County Courthouse where thousands of people waste endless hours standing in line to transfer a car title or purchase a tag. The American Society of Engineers estimated in 2009 that Americans spent $67 billion annually on car repairs caused by shoddy road conditions. How much does graduation from a fine public high school or university add to our lifetime earnings? What economic penalty do we pay to live in a low tax state?
Those were the questions rattling around in my mind one March "Tax Freedom" day in the mid 1990s as I walked across the Auburn campus headed toward the library. Governor Fob James had just completed a press conference where he extolled the glories of tax freedom, noting that Alabama ranked number one among the 50 states and the District of Columbia because of our low taxes. After arriving at the library, I plunged into volumes of state rankings that listed just about every quality of life issue that differentiates states.
In order not to beat up on my state, I included Mississippi, Louisiana, and Arkansas, which trailed us in 2nd, 3rd, and 4th places with the lowest taxes. My hypothesis was that there would be a correlation between state expenditures on critical social, economic, and educational infrastructure and these states' quality of life.
Here are some of the standings for the four states. Infant mortality: 3, 5, 6, 18. Low birth weight babies: 1, 2, 3, 5. Children living in poverty: 1, 2, 5, 7. High school dropouts: 10, 12, 13, 17. Persons 25 years and older with less than a 9th grade education: 4, 5, 7, 8. Overall poverty rate: 1, 2, 10, 11. Median family income: 51, 50, 48, 42. Per capita income: 50, 49, 45, 40. Changes in real income between 1979-1989: 51, 49, 48, 42. Expenditures per pupil in elementary and secondary schools: 50, 49, 46, 44. Adults who completed high school: 45, 43, 41, 39. Adults who completed college: 43, 42, 40, 36.
So, next time a pundit extols our good fortune on "Tax Freedom" day, head to your nearest library (assuming it remains open and can afford the subscriptions) and check STATE RANKINGS and STATISTICAL ABSTRACTS OF THE UNITED STATES. What you discover may temper your celebration.