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daredtowork

(3,732 posts)
Fri Dec 26, 2014, 10:01 PM Dec 2014

Government Funded By Fees = Failure to Tax 1%

I was just reading this article about how Ferguson used court fees and fines to fund local government - meaning that the money mostly comes out of the pockets of the poor: http://abcnews.go.com/US/wireStory/reformers-target-traffic-courts-ferguson-27683209

I've read other articles about the virtual "debtors prison" situation in other Southern states that resulted from outsourcing court functions like probation, court fine handling, etc.

In my own city there has been some gaming of the taxes: parcel taxes multiply while the Mayor uses the shrinking General Fund (from property taxes) at his discretion.

What I'm wondering is whether the "States Rights" attitude has actually impoverished communities by leaving them to fend for themselves in an economic environment where all the money is being funneled to the 1%. Since wealthy people are geographically distributed in uneven ways, then local taxes can only go so far anyway: States need to shore up the smaller towns - just as the US political system shores up the smaller States by giving their voice equal weight in the Senate. Yes there is some "socialism" built right into the Constitution - but there it's recognized as "fairness".

Anyway, it seems like there should be a way to fund small towns that comes out of the pocket of the 1%, not out of the pocket of the poorest of the poor.

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Government Funded By Fees = Failure to Tax 1% (Original Post) daredtowork Dec 2014 OP
A long time ago, maybe a decade, Trillo Dec 2014 #1
Maybe we need to start to use the more general term of "fund local government" daredtowork Dec 2014 #2
It's a very deep problem. Trillo Dec 2014 #7
My gut feeling is the answer has something to do with mobility daredtowork Dec 2014 #9
In NM the big box stores get to keep the state sales taxes they collect. I would like to keep my Dont call me Shirley Dec 2014 #11
Berkeley is plotting how to use its new Big Soda tax daredtowork Dec 2014 #12
LOL! dared Dont call me Shirley Dec 2014 #16
People in Berkeley only drink grass-fed bottled water! :p daredtowork Dec 2014 #20
Mmmmmm Dont call me Shirley Dec 2014 #21
The problem is that the rich do not live in ferguson yeoman6987 Dec 2014 #6
Wealthy people can live wherever they want. Trillo Dec 2014 #8
and, YES, again daredtowork Dec 2014 #14
kr. Interesting, it's the upper class segment of small towns who gets all the decent paying NewDeal_Dem Dec 2014 #3
Yes exactly! daredtowork Dec 2014 #4
Has it occured to you that a town like Ferguson may not have a "1%"? brooklynite Dec 2014 #5
Read closer. nt daredtowork Dec 2014 #10
everyplace has its 1%. NewDeal_Dem Dec 2014 #13
In 2013: 32,975 arrest warrant in a city of 21,135 people toddwv Dec 2014 #15
I can imagine how difficult that makes upward mobility daredtowork Dec 2014 #18
Third world economics AgingAmerican Dec 2014 #17
Yep. nt daredtowork Dec 2014 #19

Trillo

(9,154 posts)
1. A long time ago, maybe a decade,
Fri Dec 26, 2014, 10:32 PM
Dec 2014

I was told, here on DU, that "user fees" are not considered taxes. Seems kind of like a false parsing of language.

Maybe Ferguson will do all of us a big favor, besides showing us the discrimination against black people, perhaps it will become the recognition that the only people who pay taxes are the little people, just like Leona Helmsley said, "We don't pay taxes. Only the little people pay taxes."

It seems its going to be difficult to change this, the folks who write the laws are put in office by the money of the wealthy.

daredtowork

(3,732 posts)
2. Maybe we need to start to use the more general term of "fund local government"
Fri Dec 26, 2014, 10:42 PM
Dec 2014

That way we can incorporate all the minor extortions that might go into the funding.

Another related problem is how parcel taxes just get passed along in rent: even where apartments are rent controlled, rent boards happily allow rent adjustments upward to take into account the increased taxes. So this, too, gets passed to the poorest person in the equation. The landlord, meanwhile, is usually getting free housing and people paying for his/her lifestyle, just because he/she had the means to invest in a large property at one time.

Trillo

(9,154 posts)
7. It's a very deep problem.
Sat Dec 27, 2014, 12:11 AM
Dec 2014

The Federal progressive income tax, and some State income taxes, while they offset some of the disparity, come nowhere near to offsetting the total taxation load, and as you point out, there are the off the books transfers as well. It is unfair that someone could buy a large property simply because they are 10 years older than someone else, and in that 10 years, a massive increase in property values coincided with a decrease in wages (I'm speaking generally, not about Ferguson). This seems to be a built in feature of our economic system.

The idea that the entire town of Ferguson is funded by an economic punishment model directed only against the poorest is exactly the opposite of what I was led to believe about our system, and I still have trouble wrapping my mind around it.

We are now in an information era, and acess to this information is still asymmetric. The wealthy know more about us, than we know about them. Nevertheless, it should be possible, in theory, to make every individual's expenditures a function of one's yearly income, including capital gains, i.e., "sliding scales". Curiously, privacy laws seem to prevent full access to this information, while doing nothing to prevent the collection of the same data by government entities. If it wasn't, an apple might cost a wealthy person $1000, while a poor person, $0.50. That could offset the regressiveness of sales taxes (though it still wouldn't help with ticketing and warrants and associated fees to resolve them). My understanding is that there are laws that demand all customers are charged equal amounts, even though that's currently being broken down by different pricing in different markets by the same retail-store corporations, and that seems to be legal.

I wish I had more solutions. I agree with you that poor people shouldn't be targeted and financially punished simply because they have less than others. The idea of everyone having a minimum income seems like one remedy that could be applied, though just like the wealthy have done for years and years, an entire spectrum of fixes are going to have to be applied for the next few millennia.

daredtowork

(3,732 posts)
9. My gut feeling is the answer has something to do with mobility
Sat Dec 27, 2014, 12:22 AM
Dec 2014

But I'm not an economist, so I'm not able to follow the thought much beyond that.

Also, perhaps because my mobility was limited by some chronic disabilities, I became more aware of various penalties involved in just the time it takes to get from place to place. Suddenly I noticed that public transportation wasn't subsidized for the poor. Suddenly it was more important to be near the city center where all the public services were located, but that's also where housing costs are more expensive. Suddenly I had a lot of appointments that were conflicting with each other sheerly because of the time it was taking to get from place to place. Suddenly the concept of a long commute to work became excessively draining because the mobility issues I was already having were excessively draining.

To be rich is to be nimble, to be flying around "above" petty taxes, to be going to where you will make the most money. At least that's what it seems like. To be poor is to be tied by the ankle to a particular place while everyone exploits you and picks your pocket.

Dont call me Shirley

(10,998 posts)
11. In NM the big box stores get to keep the state sales taxes they collect. I would like to keep my
Sat Dec 27, 2014, 01:01 AM
Dec 2014

sales taxes.

 

yeoman6987

(14,449 posts)
6. The problem is that the rich do not live in ferguson
Fri Dec 26, 2014, 11:58 PM
Dec 2014

So they have to use what they get from property taxes and local taxes of those who work. Some state taxes may filter down. So what is left? Maybe a toll road or some fees for registering cars. What they need to do is attract wealthy people to move there and businesses.

Trillo

(9,154 posts)
8. Wealthy people can live wherever they want.
Sat Dec 27, 2014, 12:21 AM
Dec 2014

Only poorer people get stuck in one place.

Generally, when I read, "attract wealthy ... businesses", it generally means giving special deals not given to others, like lower taxes. That seems to be more the same the same problem, not less.

daredtowork

(3,732 posts)
14. and, YES, again
Sat Dec 27, 2014, 01:08 AM
Dec 2014

It drives me crazy that "attract business" means give aways to the wealthy.

The "employment" these businesses offer seem to be increasingly on exploitative terms: long term temp jobs and the like, while the companies mainly outsource from abroad.

 

NewDeal_Dem

(1,049 posts)
3. kr. Interesting, it's the upper class segment of small towns who gets all the decent paying
Fri Dec 26, 2014, 10:46 PM
Dec 2014

"city jobs" too. they have a network to help each other get them. everyone else pays.

daredtowork

(3,732 posts)
4. Yes exactly!
Fri Dec 26, 2014, 10:49 PM
Dec 2014

There are two many ways people form patterns and groups above and beyond their geographical location. However, poor people are the least mobile, the most trapped in place. That's why they pay the most. Ironically, that goes for sales taxes, too.

toddwv

(2,830 posts)
15. In 2013: 32,975 arrest warrant in a city of 21,135 people
Sat Dec 27, 2014, 01:42 AM
Dec 2014

For mostly nonviolent driving related offenses.

http://www.npr.org/2014/08/25/343143937/in-ferguson-court-fines-and-fees-fuel-anger

Can you imagine the level of harassment that was going on? I can't.

And this is how the PD reacts to its citizens' anger:




Anyone who thinks this is just about Michael Brown is ignoring the true issues at hand.

daredtowork

(3,732 posts)
18. I can imagine how difficult that makes upward mobility
Sat Dec 27, 2014, 01:49 AM
Dec 2014

...in terms of getting jobs, getting into college, government clearances, licenses, loans - I'm sure these "official records" curtail just about every aspect of these people's lives.

Just so the local 1% can have a town under them they can rule...? Geez.

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