Inspired by a story in the New York Times about a “Fair Share Tax” about to be enacted in Pittsburgh to tax student tuition, Greg Hunter and David Esrati discuss what this means to Dayton.
From the New York Times:
On Wednesday, the City Council is expected to give preliminary approval to Mayor Luke Ravenstahl’s proposal for a 1 percent tuition tax on students attending college in Pittsburgh, which he says will raise $16.2 million in annual revenue that is needed to pay pensions for retired city employees. Final Council action will be on Monday.
The tax would be the first of its kind in the nation, and other cities are watching closely as they try to find ways to close their own budget gaps…
The tax, which will most likely end up in the courts, represents a turning point for Pittsburgh, which has remade itself after the steel mills shut down, becoming a hub for nonprofit hospitals and universities. Yet it has been unable to draw significant revenue from its new identity.
“It’s really a disappointment that we’re in this situation,” Mayor Ravenstahl said. “Our colleges and universities are giving less and less while they increase tuition and executive pay and expand their campuses, removing high-value land from the tax rolls. The cost to provide public safety and public works services continues to increase, but our revenue continues to decrease.”
With Dayton relying on “Meds, Eds and Feds”- none of which pay property taxes, is it time to reexamine the waivers on property taxes for non-profits?