October 06, 2006
Is it a Tax or an Investment?
[Note: Because the St. Cloud Times only archives its opinions for seven days, we've placed the full text of the linked article in our comments section.]
St. Cloud Times Opinion editor Randy Krebs poses his question this way: "What's the difference between a tax and an investment?"
It's a reasonable question, but he goes on to say:
Based on personal and professional experience, I've become convinced this is the ultimate unanswerable question, especially for politicians.Actually, the answer isn't that tough. A tax is a revenue source. An investment is spending some of today's revenue with the expectation of a future return. This simple distinction has become complicated by 30 years of anti-tax rhetoric that made "tax" a word that can only be uttered with contempt. Especially during a political campaign. So, some politicians may use "investment" as a less toxic way to say we need to spend more. ("Spend," remember, is also a loaded term.) In his opinion piece, Krebs seems to agree, equating investment with more adequately funding education, transportation, and public safety. He's getting closer, but investment is not just a fancy word for spending on today's necessities. A wise investment requires a vision of the desired outcome, clear measures of success, and accountability for achieving results. Helping Minnesotans select good investments is what the "Invest for Real Prosperity" strategy is all about.
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Krebs column:
Tax or investment? See what candidates say
Randy Krebs Opinion editor
Published: October 01. 2006 1:00AM
If you want to have fun with any of the political candidates knocking on your door these days — or heck, if you just want some lively dinner conversation — ask this question:
What's the difference between a tax and an investment?
Based on personal and professional experience, I've become convinced this is the ultimate unanswerable question, especially for politicians.
Which, of course, is why I encourage you to ask them.
Take, for example, education funding.
I have several friends and relatives who are retired. Every time their school district asks voters to kick in a little extra cash, they inevitably cite how they are living on a fixed income and that even having to pay a little bit more in taxes will be anything but easy.
Now, outside of the fact some of their incomes are "fixed" quite a bit higher than mine, I really can't quibble with their reluctance to raise their own taxes.
No doubt, they see this as a tax providing little direct benefit to them.
However, what they clearly see as tax looks much different from others' perspectives.
Take me, for example.
As a parent of young children, I'm routinely asked to buy school supplies my parents never had to provide when I was young.
And then there are my relatives and friends who are teachers. I swear on our family's tax returns that, yes, teachers do spend plenty of personal resources on public education.
Whether it's shopping garage sales for used board games to enliven learning or finding milkweed to keep science projects alive, I believe most teachers (and their families) just accept that shelling out their own resources is one of the simpler answers amid today's many educational challenges.
In fact, I think most teachers do this with little thought simply because they know there are much bigger classroom challenges in need of their time and attention.
Viewed from those perspectives, how can people not see referendums as much-needed investments?
But enough about education. The tax-or-investment question applies to many issues.
Look at transportation. Is the Northstar commuter rail project something that just sucks up tax dollars? Or is it a good investment considering there are no other transportation improvements planned anytime soon?
What about Minnesota's gas tax? Is increasing it simply putting your money into a black hole?
Or would you gladly pay if it meant more and better roads sooner than later?
And what about public safety? Are the extra dollars you will pay for expanding fire and police services really going to make your decades-old home safer?
Or is that an expense you should incur because it provides the same protections you have had for years to a new part of the city?
Tax or investment? Needed or not?
On Election Day, make sure you not only know how you would answer the question, but how the candidates you will vote for would answer it, too.
This is the opinion of Opinion Page Editor Randy Krebs. He can be reached at 255-8762.
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Tax or investment? See what candidates say
Randy Krebs Opinion editor
Published: October 01. 2006 1:00AM
If you want to have fun with any of the political candidates knocking on your door these days — or heck, if you just want some lively dinner conversation — ask this question:
What's the difference between a tax and an investment?
Based on personal and professional experience, I've become convinced this is the ultimate unanswerable question, especially for politicians.
Which, of course, is why I encourage you to ask them.
Take, for example, education funding.
I have several friends and relatives who are retired. Every time their school district asks voters to kick in a little extra cash, they inevitably cite how they are living on a fixed income and that even having to pay a little bit more in taxes will be anything but easy.
Now, outside of the fact some of their incomes are "fixed" quite a bit higher than mine, I really can't quibble with their reluctance to raise their own taxes.
No doubt, they see this as a tax providing little direct benefit to them.
However, what they clearly see as tax looks much different from others' perspectives.
Take me, for example.
As a parent of young children, I'm routinely asked to buy school supplies my parents never had to provide when I was young.
And then there are my relatives and friends who are teachers. I swear on our family's tax returns that, yes, teachers do spend plenty of personal resources on public education.
Whether it's shopping garage sales for used board games to enliven learning or finding milkweed to keep science projects alive, I believe most teachers (and their families) just accept that shelling out their own resources is one of the simpler answers amid today's many educational challenges.
In fact, I think most teachers do this with little thought simply because they know there are much bigger classroom challenges in need of their time and attention.
Viewed from those perspectives, how can people not see referendums as much-needed investments?
But enough about education. The tax-or-investment question applies to many issues.
Look at transportation. Is the Northstar commuter rail project something that just sucks up tax dollars? Or is it a good investment considering there are no other transportation improvements planned anytime soon?
What about Minnesota's gas tax? Is increasing it simply putting your money into a black hole?
Or would you gladly pay if it meant more and better roads sooner than later?
And what about public safety? Are the extra dollars you will pay for expanding fire and police services really going to make your decades-old home safer?
Or is that an expense you should incur because it provides the same protections you have had for years to a new part of the city?
Tax or investment? Needed or not?
On Election Day, make sure you not only know how you would answer the question, but how the candidates you will vote for would answer it, too.
This is the opinion of Opinion Page Editor Randy Krebs. He can be reached at 255-8762.
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