A breaking dispatch from the Associated Press sure makes it look like Pittsburgh Mayor Luke Ravenstahl (picture at top right is from his Wikipedia entry) is engaging in extortion directed at the institutions of higher education that happen to be within the city's borders. The ostensible reason for the stickup is to shore up the city's foundering pension system.
It will be interesting to see how or if the AP develops this story in the coming day before the possible Wednesday vote.
Also, the "first-of-its-kind" tax that Ravenstahl wants to impose has gotten surprisingly little national notice since he first proposed it in mid-November.
Anyway, here's a graphic capture of the AP item:
If this isn't extortion, someone will have to tell me what it is.
It will surprise no one that the tax-creative Ravenstahl is a Democrat. Though the situation may change in future updates, it will further surprise no one that the AP didn't name his party.
A deeper look into his record gives indications that the 29 year-old Ravenstahl appears bound and determined to make us forget about the up-to-now worst big-city "boy mayor" in American history, Cleveland's Dennis Kucinich. Kucinich, now an Ohio congressman and a comic sideshow Democratic presidential candidate in 2004 and 2008, brought his city to the brink of bankruptcy in the late 1970s, barely surviving a recall vote.
As to the tuition tax, though the best tax is usually one that doesn't exist, this particular assessment might have a backhanded benefit. A levy so visible and so onerous might make collegians a bit more skeptical of the non-stop statism so many of their profs promulgate.
Commenters surely will have other thoughts on this, so have at it.
Cross-posted at BizzyBlog.com.
—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters
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Unions again
Tue, 12/15/2009 - 14:59 ET by SickofLibsAt $35K/year for tuition, this "measly" 1% tax would add $1000 to a kid's 4-yr. tuition.
Renegotiate with the unions, a-hole. Retired workers are eligible for Medicare like everyone - why should the rest of us bankroll their health insurance for life?
I am confused
Tue, 12/15/2009 - 19:16 ET by katiejanewhat pensions is he talking about? The pension for employees of the universities or just public employees in general?
Looks like Ravenstahl
Tue, 12/15/2009 - 15:03 ET by DontFeedTheTrollsLooks like Ravenstahl noticed those huge windfall profits the universities have been pulling down over the last 10 or 20 years and wants to redistribute that wealth. Look out Harvard, you could be next.
D
Write your Congress and Senate and tell them what YOU think!
Keep the ILLEGALS out, join NumbersUSA to send free faxes to your reps.
The local papers do not
Tue, 12/15/2009 - 15:10 ET by Roger the ShrubberThe local papers do not have to put a (D) after Mayor Opie's name because there has not been a Republican mayor of the Burgh since the mid 1930's... Only the most elderly of yinzers would remember that.
Mayor Opie got re-elected last month, and, within two week after winning, announced he was dumping the wife and newborn child, props that served their purpose well.
This story has much of the city outraged. On the other hand, the University of Pittsburgh has bought up much of the Oakland neighborhood of Pittsburgh, depriving the city of income, er, taxes.
Raise Property Taxes
Tue, 12/15/2009 - 15:12 ET by CobraManHay, Mayor, why don't you propose that the city raise their Property Taxes to cover your pension shortfall? What's that, you don't want the citizens MAD at you? Awww, I guess you're reelection is more important than admitting your can't even afford to pay your PENSION liabilities!
Perhaps you should REDUCE your pension payments instead of forcing young adults to cover your worthless ass(ets)? What's that, you don't want the UNIONS mad at you? Awww, I guess your reelection fund is more important that the financial viability of your own City.
Geez, Mayor, I wonder just how well you'll do in the next election when the Citizens realize you're more interested in saving your reelection "donation" base than your own city';s financial solvency? I don't think you'll do so well. So, say HI to those pensioners as you pass them in the Bread Line for you, like they, will be out of money because of YOUR incompetence.
The Citizens of each State shall be entitled to all Privileges and Immunities of Citizens in the several States.
The US Constitution
Unless you're a fetus.
The US Supreme Court
X-nay on the Operty axestay
Tue, 12/15/2009 - 16:04 ET by midiaGawd, don't mention prahperty taxes in Pixburg. They've had a hell of time wi-dat.
And we still have the same problem
Tue, 12/15/2009 - 17:59 ET by LSBeeneThe ROOT of this problem is still with us and will be until we SAVE money for retirement.
Every time a new city, state, or federal employee starts his or her job we promise them "20 years and a retirement". But not one dime (in most states or the fed) is actually SAVED for that retirement.
Like all our other problems, we put it off for someone else to deal with.
What needs to happen, starting TODAY is that each employee, has 10-20% of their paycheck taken out, and when they retire they get what was saved. It can be tax free (including capital gains) and we don't have this pension problem.
In fact, if we were to MATCH those dollars, those people would retire in style. Sure, their pay would be lower, but, let's face it, we've learned with pensions, and especially with Social Security, the idea of this ponzi scheme does not work.
Let people save, tax free, for their own retirement - let them pick the kinds of funds they want to invest in (bank account to high risk stocks) and stop promising $$$ 20 years down the road while not saving it now.
THAT's the solution - and we all know it.
But gov't giving up that control and power - that's the impediment.
Steven
I work for the City of
Tue, 12/15/2009 - 23:30 ET by Dan The Man 2I work for the City of Dallas and I can assure you that there is an account in the billions of dollars for the retirement of City employees and I pretty much believe it is the same for the state and county and teachers pensions. I pay 9% at the moment to the pension fund to make sure it is stable. In addition there are auditors from teh City, the fund which is independent from the City and the state to watch over the security of the fund; there is a board made up of mostly City employees and 2 fund people and 2 City people.
Insurance is provided by the city for cost which is considerable; like if you have a spouse and kids its 900 per month. Normal retirement for civilians is 30 years or if sworn like police/fire it is 20 years. The payout depends on how many years you have so 30 years is like 82% and 20 is 55%.
Most of the pension systems I know of except for the feds and private companies are funded this way.
Instead of trying to rein in
Tue, 12/15/2009 - 21:27 ET by djaymickInstead of trying to rein in the city's spending, he will tax the students instead. If he wants to push his weight around, maybe he can start with the city council. Or maybe he can call his buddy Mertha and have him blast the universities as bible-toting, gun-toting, racist rednecks.
Shhh! Don't Call It A Tax!
Tue, 12/15/2009 - 22:23 ET by stratmanCleveland's jackass mayor Frank Jackson wants to charge a "fee" to the city's hospitals and not-for-profits like the Cleveland Museum of Art in order to balance the city's budget... the budget he specifically claimed to have balanced during his re-election run.
Cause we all know that the tremenduous free care the hospitals give should end so that they can concentrate on making money to pay for the "fee".
And the museums should stop letting inner city school kids in for free on their once in their lifetime school trip to experience the history and majesty of art?
***Jackson also got his wish and now Clevelanders will be paying $8.25 per month (with rate increases through 2013) for garbage pickup to help balance the budget he claimed was already balanced.
***I predict a lot of garbage dumped in Cleveland. Oh, and more rats too. And I'm not talking the City Hall kind.
Derp!
Wed, 12/16/2009 - 03:33 ET by someloudthunderSo they are going to tax something funded by tax dollars?
It's like a snake eating itself!
Thro
Wed, 12/16/2009 - 10:03 ET by jessieHThrow the bum out.