Bookworm has written a scathing attack on California’s Proposition 82 which sounds so nice and hugable on the first read:
“Should the California Constitution and state law be amended to create and support a new, publicly funded, voluntary preschool program for children to attend in the year prior to kindergarten, to be funded by an increase in personal income tax rates for high income individuals?”
More of the same from the left with this one. Lets tax the rich to get what we want. No matter that the rich already provide most of the tax money in this country.
But Book has found some other serious defeciencies with this Prop:
One fact is how little benefit will actually accrue if Prop 82 goes into effect. The Proposition’s stated goal is to provide a year of preschool for 70% of California’s average annual population of 550,000 four year olds. That is, the plan proposes sending 385,000 four year olds to preschool every year. What a noble number! The plan, however, ignores the fact that, annually, 66% of California’s four year olds – or 363,000 – already go to preschool. This means a huge tax bill and the creation of a bureaucratic monster for a mere 22,000 four year olds.
Another fact is the fundamental premise underlying Prop 82, namely, that its passage means the State of California will step in and manage yet more education in California. This is not a good thing. It’s no secret that California schools went from being first in the nation to just about worst in the nation. They are now struggling along in the bottom half of the nation’s schools. The State’s promised involvement doesn’t inspire me to believe that, even assuming huge benefits from preschool education, we’ll ever see them.
[…]The worst fact, though, is the complete destruction of a free market for parents seeking a preschool education for their children. For schools to compete, they’re all going to have to hop on Board with whatever licensing requirements the State comes up with. Those schools that do not want to, or cannot, comply with these licensing requirements, will hear that famous “giant sucking sound” as the marketplace tilts toward the subsidized schools.
Only in California. I mean this state does such a HORRIBLE job of running K-12 who in their right mind would think this friggin state running preschools is a good idea?
Plus this state is so over taxed as it is. Is it any wonder that business leaves this state in droves…..but hell, lets add another tax to the mix:
History shows that raising taxes on higher earners causes them to flee the state and take their businesses and investments with them–reducing existing State revenues from income taxes. The personal income tax is now more than 50% of state General Fund budget revenue. Only 11% of California taxpayers pay 73% of this tax. Even a slight reduction in revenues from these higher earners will have a significant negative impact on State revenues and the existing vital services that rely on the General Fund including schools, roads, public safety, healthcare and other priorities.
Eighty percent of California businesses pay taxes under the personal income tax – primarily small business owners (including Sub S Corporations). This initiative would increase the tax they pay and harm small business owners – the backbone of our economy.
Higher taxes will chase away small businesses, higher income entrepreneurs and business leaders – as well as their tax dollars. Companies must look at personal income tax rates to see how it will affect managers, and many may decide to locate in a state with a more favorable tax structure.
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Some more facts:
The government-run preschool bureaucracy will also shut down thousands of private, community based preschools that currently enroll nearly 50 percent of all children enrolled in preschool programs in California – replacing thriving businesses that provide jobs and tax revenue and reducing educational and childcare options for families.
Especially hard hit would be low- to middle-income women who run nearly all private early-care centers that comprise 70% of California’s child-care industry.
If your a resident of the Socialist Republic of Kalifornia please visit this website to find out how you can help defeat this Proposition.
See author page
Curt — thanks so much for the link, and for making my information even better by including the tax consequences to the State of California. I’ve posted before (about a year ago) regarding how hostile California is to businesses, as if the State can’t figure out that businesses power California’s economic engine. The same goes for making the highest earners want to look elsewhere. Great post.