In New York they are debating the cost of Pre K.  Everyone thinks it is a good deal, but to pay for it by raising taxes on only the rich?  The tax which is in discussion will cost roughly $1000 on incomes over $500,000.  New York has a lot of those.

The anti-taxers are beginning their push-back. …. A little history might be right for the rebuttal….

Taxes are too low and that is the reason for most of our economic slump.  Today’s low rates make it too profitable to skim money’s off the top… and nothing is getting reinvested back into the economy….  Taxes, we discovered across the expanse of the 20th Century,  are a tool of public policy and today, they are not being effectively used…

Higher taxes and a stronger government presence in the economy, is essential to economic stability.  The evidence to that is unquestionable.  Deregulated markets do some good, but are not the  complete answer to running a great society….  When one runs a business, one is always under constant pressure to reinvest some of ones profits back into ones business, or…  choose to  take the other option and keep the extra as profit.  We all hate those who chose the latter.

If something is broken, one should fix it, right?  That means spending money now.

Children of low income and minority households enter our school system with half of the vocabulary-words needed.  There is no way that can be fixed at home.  If one’s household does not use a wide vocabulary, one cannot get a wide vocabulary at home.  Having Pre-K and exposing all children to 10000+ words upon entering school, would almost close the achievement gap at it’s beginning.

We know what has to be done.  10,000+ words per child.  Just reading story-books with children would be enough to develop that… And the  benefit would dwarf the tiny cost….  It is that simple; reading children’s stories to them… something affluent parents do daily.

On to taxes.  From the 1940’s to the 1960’s the top tax rate gradually lowered from 100% to 72%… The JFK dropped it down to 60% to where it stayed until the great tax cutter, Ronald Reagan, dropped it to 50%…  Obviously every Republican who loves Ronald Reagan should have no qualms with accepting a 50% top marginal rate… They should be volunteering to pay that high, don’t you think?

Rates were cut again to 28% and when the cut  hit, the huge recession of ’91 began.  Upon entering office, Clinton raised them to 39% and the economy took off.   Took off until Bush cut taxes down to 35%…. They stayed at that level until last year, when the top half of one percent, got hit with a top rate or 39.5%….

This was the 1% most prosperous year ever….  needless to say, higher taxes improves one’s fortunes, not diminish them….

How much is $1000?  To the super rich?   If your average rate of return on $500,000 is 7%, over the year you should gain $35,000…. Divided by 365 days of the year, that would amount to  96 dollars a day…  So $1000 would be 11 days of interest off your $500,000.  That means you could keep the other 355 days worth…

Plus, at bringing all children in at 10,000 words, think of all the future costs that can be saved by then doing away with Pearson, MacLatchey, AIR and all the other consultants…. Pay a little now; save a lot later.

Any argument over being taxed more for kindergarten, or for any other viable reason, needs to be taken worth a grain of salt.    of course people are going to yell.  Even babies yell and they don’t even know why.  But we don’t let babies rule every aspect of our lives now, do we?

Or, do we?

 

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