The Necessary and the Good
Over the last couple of months I was privileged to speak to students in every elementary school in the district. It was great. The topic was “Representative Democracy,” a little study on history and the way our government operates. But the main point of the exercise was to help them understand that their ideas count – that they are important.
Early in the lesson we talk about taxes. I help the young students understand that taxes are used for good things, serving the people who pay the taxes. More important is that lawmakers who decide how much tax is paid need to be responsive to the ones who actually pay the tax. If citizens think taxes are too high, then they can contact (or replace) their representative. It’s enjoyable to be with these kids in the classroom, and to get their feedback.
While I’m a fighter for lower taxes, I hold the opinion that it’s unwise to declare that there should be “no new taxes.” Kentucky’s tax system was about a century old and needed to be modernized, so we did. In the process some taxes were raised, but others were lowered or eliminated. I was pleased to help our poorest avoid Kentucky income tax altogether.
Some fees that we pay can actually be called taxes. The fee that you pay for a driver’s license, for example, is a form of taxation since you really have no choice; you can’t get a license anywhere else. But our Circuit Clerk, Diane Thompson, uses those fees to help operate her office. I don’t think that we can expect her to operate her office using the same budget in 2006 that she did twenty years ago. So, it’s reasonable that the fees that run her office (driver’s license fees) should go up over time. But there’s no need to shoot for a profit – the fee should go up only as much as necessary to keep things running.
The same is true for our state government. We need to ask for tax money to fund that which is necessary and good, and no more. The difference between a fee and an income tax is that the fee will remain fixed until you change it; income tax, on the other hand, puts more money in our government’s hands as incomes rise. Over the years as the economy expanded Kentucky’s tax revenue just kept rising. Six percent of something much bigger brings in a lot more cash money. We are now spending about twice as much as we did only fifteen years ago, yet the income tax is still at 6%.
You might have noticed that it’s not real easy to agree on what’s “necessary” or even what’s “good.” Some folks think, for example, that if we can do a good job teaching kids at $5000 per student per year, then we could do twice as good at $10,000. Others disagree, and think that more money is maybe not the answer for a better education.
That which is good includes the system we use to fund care for those who are poor. We’ve talked about this before, and the program is called Medicaid. We’ve been in trouble with our Medicaid spending because it’s gotten out of hand. My feeling is that we’ve built a Welfare Ship of State. If we build it bigger, then more will jump on board. And no matter how small or large your ship, there will always be those who are hanging off the side, trying to get in. It’s not a great cruise, but it’s easier than rowing your own boat. Many people truly need our help, but did you know that one out of every five Kentuckians receives help from the government? That’s a mighty big ship.
As I’ve noted for you previously we keep giving more of our budget to support those who sign on to Medicaid and to education. These two combined programs now account for about 74% of the general fund budget. The answer to those who ask for increased spending on these programs is: we already are. Not only has spending on these two programs increased in terms of dollars, it’s also increased as a percentage of our budget. The people have a right to question whether or not they’re getting their money’s worth. Has education improved as a result of dramatic spending increases? Have we succeeded in helping those who are able back to self-sufficiency? Each of these questions deserves a much longer response than the space we have here.
When I hear people call for increased taxes I have to ask, “How do the people feel about the money we’re already spending? Do you really think that citizens want to pay even more?” It is so very easy for our legislature to increase spending, and that’s exactly what will continue to happen if no one stands up and cries “Stop!”
The best part of my job is hearing from you and I’m interested in your opinion. Call me at home or leave a message at 1-800-372-7181. I’ll do my best to get back with you. Our 2007 session begins January 2nd, and I’ll be sending out a questionnaire to get your input on several issues.