Some Utah policymakers are proposing legislation this year that would increase generally applicable taxes on income and gasoline. Not surprisingly, these proposals have drawn the attention of the media and Utah pollsters, who have found that Utahns oppose raising income taxes for education.
Utahns’ hesitancy regarding tax increases is well founded. Government has a history of inefficiency (driven by a relative lack of systematic accountability for government-funded programs) and seemingly endless expansion (due to natural political forces). So it is very reasonable for Utahns to balk at the idea of giving more of their hard-earned money to government.
On the other hand, meaningful freedom requires limited government – or good government, in other words. And that has to be paid for with taxpayer dollars. Given the natural conflict between the freedom-based need for tax dollars and the reasonable impulse to be skeptical of tax increase proposals, how should Utahns and Utah policymakers evaluate such proposals?
One fundamental question (but certainly not the only question) to ask is: “Will this tax increase proposal bring fundamental, beneficial reform to government that serves the common good?” If a proposal to take more money from taxpayers cannot answer at least this question with a clear and convincing “yes,” then it is probably not a proposal worth considering further.
So take the proposal to raise individual income taxes by 20 percent (upping the rate from 5 percent to 6 percent). The money generated by this proposal (estimated to be $585 million in 2016) would go mostly toward providing bonuses to teachers based on performance, with the remainder being invested in digital learning.
Certainly, these reforms are steps in the right direction for public education. But are they truly fundamental and beneficial reforms that merit a tax increase? Read more