Archive for April, 2010

$350 million funding proposal for South Carolina Public Schools

April 30, 2010

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Consider that with a PK-12 enrollment of approximately 700,000 students in SC public schools, it only take $1.43 per student to raise $1,000,000.  That factors out to less than a nickel per week.

How many ways can you raise a nickel per student, especially if local businesses can also realize an extra nickel, dime, quarter, or dollar per student?  In most communities, children represent approximately 1 of every 6 people.  They can drive a tremendous amount of economic activity, so why not facilitate that in a way that benefits their education?

The tax revenue pie has shrunk and will continue to do so.  Stimulus money will run out.  People have to compete harder for competitive grants.  That leaves us with the cutting of staff and programs, tax increases, or hoping for “stimulus” or “bailout” money with all of its many strings attached.

The status quo does not work.  To maintain government services requires different ways of generating revenue.  Click below to look at a few different ways to stabilize public school funding.

$350 MILLION IN ALTERNATIVE REVENUE STREAMS FOR SOUTH CAROLINA PUBLIC SCHOOLS 

It is not the amount money in the amount of money in the revenue streams that will stabilize government budgets.   It is a matter of how you divert the revenue stream through the community.  By diverting the same tax money thought local businesses (e.g., business partnerships & local shopping) on the way to the tax collector’s office, you generate additional economic activity and jobs.

In schools, the most important thing is to maintain stability because for some children, the classroom is the only stable environment they know. If our political leadership is not willing to try some different things to stabilize the classroom environment,  then they will have to just keep cutting as the money pie continues to shrink.  And no matter how they cut it, there is simply less to go around.

Tax Payment Choice – Shopping around for the best tax deals

April 14, 2010

With all the modern electronic commerce technology that is available today, we should be able shop around for different ways to pay our tax bill, and effectively lower our personal tax burden while driving additional economic growth.  With Tax Payment Choice, you could.

When a person or business pays any tax, first credit that tax payment to their personal or business tax assessment. A tax assessment is a tax bill with your name on it and states exactly what you must pay for living in a particular political subdivision. Assessments include property taxes and motor vehicle taxes.

With Tax Payment Choice, offer people and businesses a variety of methods to pay their tax assessments, and the flexibility to do so in a way that effectively lowers their personal tax burden. For example, if you owe $100 for your car tax assessment, would you rather?:

A. Write a $100 check directly to the County Treasurer’s office.

B. Pay $4/week to purchase $200 worth of lottery tickets (50% goes to finance the govt. budget and 50% goes jackpot payouts) with half the ticket purchase price being transacted as a tax payment that is credited to your tax assessment.

C. Purchase a couple season tickets to see your high school football team play their home games, with the ticket purchase price being transacted as a tax payment that is credited to your tax assessment.

D. Pay $5 for popcorn, hot dog, and a drink at the above mentioned high school football games, with half the purchase price being transacted as a tax payment that is credited to your tax assessment.

E. Eat at a local restaurant once a week, with $2 from the meal price being transacted as a tax payment that is credited to your tax assessment.

F. Eat at another restaurant across the street once a week, with $3 from the same meal price being transacted as a tax payment that is credited to your tax assessment.  Market competition effectively lowers you personal tax burden.

G. If you own an office supply store,  pay a tax payment of  $100 worth of photocopy paper to some local government agency as a Payment in Kind (Paper- in-Lieu of  Taxes.) You receive a $100 credit to your business taxes because that is what was budgeted for that paper. You paid a $60 wholesale cost for that paper.  You business taxes are effectively lowered by $40.   In other words, your receive a retail value tax credit at wholesale cost.

Since the government agency received the resource directly that it would have otherwise purchased, it does not need to spend tax money.  If government does not spend tax money for a resource, then it does not need to collect tax money for that resource from the citizens or businesses residing in its political subdivision.

H. Some combination of all of the above.

In the above examples, Tax Payment Choice allows you to shop around for tax deals to effectively lower your personal tax burden.  It takes the same tax money you pay, and simply diverts your contribution to the government revenue stream though your community in a way that generates additional economic activity on the way to the Tax Collector’s office.

With all the commonplace and readily available electronic commerce technology available, we should be able to just quit paying taxes at some point in the year and have an annual tax holiday.

CLICK HERE TO DOWNLOAD A WHITE PAPER WITH A SHORT TAX PAYMENT CHOICE WORKSHEET