Indiana's Economy #1 - Taxes 4/25/2010

[I do not know how much, if anything, of what follows still applies. Nothing that I write is me shooting off my mouth, but that was/is the point. I did not say, I did not contribute, I did not stand up for a very long time because I feared that I would lose clients, which means lose money, which means losing what ever tatters remained of my career. It felt unnatural, it felt cowardly, it felt craven, and I disgusted myself for this - amongst other cowardly and craven and inconstant things I did - and it did not help my mental health. In the end, I had to destroy what I held onto. I wrote about my thinking in The Monkey and the Fruit . I am publishing these pretrial detention records to make a record; if anything helpful can be gleaned is a bonus. sch 10/1/22.]

Reading the Indianapolis Star this, weekend and I see three articles. One told how our rel wages declined to put us 40th in this nation. So now Indiana is the equivalent of a Third World country? The other two tied into education and I want to write on that separately, although all three are tied together.

Indiana prides itself on its low taxes. Our taxation system relies on property taxes, sales taxes, and income taxes. The legislature and the politicians have screwed with but not fixed the property tax system. We have schools with budget shortfalls and library closings because of property tax "reform."

Still, we cannot get enough jobs paying well enough to generate the taxes necessary to provide an educational system (schools and libraries) capable of producing people to take part in this high-tech economy. I also question our ability to maintain the physical infrastructure necessary for retaining old businesses and attracting new ones. 

If low taxes truly were the sole criterion for businesses, then why have GM and Microsoft not relocated to India?

We need a review of Indiana's tax policy from bottom to top. The review must not be on the basis of how much  is being paid by whom. The Tea Partiers and disciples of Grover Norquist need to be shut away, as any other sociopaths need to be shut away.

Tax policy needs to be examined by what the state needs to create an economy that creates an equitable lifestyle for its citizens. (Yes, I know there is something to quibble about in that sentence.)

Once we figure out what we need, we figure out how it gets paid and who pays for it.

Who pays does not mean only the "rich" or the "middle class," but which government entity bears responsibility for what? Then we figure out what method of taxation works best for which unit of government.

Let me give an example. I think the State government has a duty to provide equal education (See Indiana's Constitution.) Therefore, the State of Indian should provide funding for schools via the income tax. This funding should be based on providing an education and not sports. The State needs to develop a state-wide basic curriculum. However, if a local school board wants to offer sports (like any Indiana school will not offer basketball) or special courses (Arabic? Radio? Television?) , then they will pay for these through the property tax. Which means the school boards must justify the additional costs to their constituents.

Indiana needs new thinking about taxes. The whole country needs to get past this "all taxes are bad" mentality. After all, who benefited from George W. Bush's tax cuts? [Or from Donald J. Trump's tax cuts. sch 10/1/22] Then we, the people, must decide if we like on what our money is spent.

The other shoe drops. All this should lead (I think shall lead) to a reformation of Indiana governments - state, county, township. I think if left to the General Assembly, the Shepard-Kernan Report would acquire the same status as the Marshall Constitution - something for historians. Long time since the township acted as the basic building block for State government. Thank you, Mr. Jefferson, for the idea, but in some counties they might have as much as teats on a boar. Likewise, we put too much control over local areas in the General Assembly. We need to strike a new balance. Time to light a BIG fire under this reform.

Maybe when we restore rationality to our taxes by setting a goal for Indian, all our lives and livelihood s will improve. (I should write "your" for "our" as I doubt I will live to share in any changes. Still, I want to be remembered as a Hoosier, so pardon my solidarity.)

sch