A Way to Solve DC's "Structural Imbalance:" Start a Gay Refugee from VA Program!
I have never bought the argument that DC suffers from a "structural imbalance" of tax collections due to the fact that so much of DC property is government-owned and ergo not taxable. Without the presence of the federal government DC would be, well, something resembling Baltimore, if not worse. Because of the presence of the feds, and the benefits from the expanding federal budget, DC and its suburbs rank among the highest in the US in terms of income and those suburbanites spend a ton of money in DC.
To me, the "structural imbalance" argument is an excuse passionately made by an inefficient government as to why they are so bad (see: DC schools) and a cloak for my most unfavorite organization in the world, the DC Fiscal Policy Institute, to argue for more tax money in general. Here is the latter's take on the "structural imbalance."
In 2001 Alice Rivlin produced a paper for Brookings that is unfortunately no longer viewable online, so you have to trust me on this. Her paper was the blueprint for Tony Williams' plan to attract 100,000 new DC residents. When I read the report in 2001 I was gripped by its data: the District loses about $13,000 per year net on a couple with two children and makes about $9,000 net per single resident. So, in essence, the DC government has created an expense structure that needs more single residents to support it. That is why DC residents see so many cranes in the sky building one bedroom lofts. Of course the DC Council likes to posture that they want more families in the city, but the fact is that the city cannot afford families anymore.
Fortunately for DC, Virginia has become the least friendly state in the nation to gay people, so gay VA residents, who typically have no children, are contemplating moves. Also lucky for DC, Montgomery County is just about as bad in terms of taxes and has a horrible 10% non-family inheritance tax that the District does not have. I have a gay female friend who is planning to move from VA to the District because of the heinous new VA laws. So she and her partner will generate a net gain of $18,000 for DC!
Of course the outrage, and the point of this post, is that DC spends so much money on education, while ranking dead last in national standings and first in spending, that the city can only support its wasteful habits by attracting more people without children. The next time that a Council Member postures about making DC more family-friendly, ask them how they are going to pay for it.
To me, the "structural imbalance" argument is an excuse passionately made by an inefficient government as to why they are so bad (see: DC schools) and a cloak for my most unfavorite organization in the world, the DC Fiscal Policy Institute, to argue for more tax money in general. Here is the latter's take on the "structural imbalance."
In 2001 Alice Rivlin produced a paper for Brookings that is unfortunately no longer viewable online, so you have to trust me on this. Her paper was the blueprint for Tony Williams' plan to attract 100,000 new DC residents. When I read the report in 2001 I was gripped by its data: the District loses about $13,000 per year net on a couple with two children and makes about $9,000 net per single resident. So, in essence, the DC government has created an expense structure that needs more single residents to support it. That is why DC residents see so many cranes in the sky building one bedroom lofts. Of course the DC Council likes to posture that they want more families in the city, but the fact is that the city cannot afford families anymore.
Fortunately for DC, Virginia has become the least friendly state in the nation to gay people, so gay VA residents, who typically have no children, are contemplating moves. Also lucky for DC, Montgomery County is just about as bad in terms of taxes and has a horrible 10% non-family inheritance tax that the District does not have. I have a gay female friend who is planning to move from VA to the District because of the heinous new VA laws. So she and her partner will generate a net gain of $18,000 for DC!
Of course the outrage, and the point of this post, is that DC spends so much money on education, while ranking dead last in national standings and first in spending, that the city can only support its wasteful habits by attracting more people without children. The next time that a Council Member postures about making DC more family-friendly, ask them how they are going to pay for it.
posted by Leonardo at 6:25 PM
3 Comments:
As a single person in DC I have always felt fleeced by the DC government. Thanks for putting data behind that.
Well, I'm happy to know that the White Rabbit (my partner) and I will create a net gain for DC to the tune of $18K! It's the least we can do in exchange for the city's open arms and domestic partner registration! ;)
Single people get screwed because people actually pay MORE when they use FEWER services.
My radical view of singles' rights would posit that we should pay less. But I know that will never fly politically so perhaps they would just let us pay the same.
It is insane that people with kids in the school system pay a lower tax rate than do those without.
Plus, the schools should not cost so much that the city actually doesn't want families to move in anymore.
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