Taxing Tuition

Pittsburg has decided that since they are projected to go over budget, they should start taxing tuition.  Their logic is that students aren’t paying taxes, but they use city services.  I would assume that these students pay quite a bit in sales tax, but the city thinks they need more.  While the tax isn’t ridiculously high–it looks like it will be up to about $400 per year–it still seems a bit odd to me.

I think there is a fundamental problem when governments reaction to budget shortfalls is to look for ways to collect more taxes.  The proper response would be to try to become more efficient or reduce spending.  Looking for more ways to take people’s money doesn’t really serve their constituents.

I’m not saying that governments are always just trying to take money away from the people in their domain, but I think you will be hard pressed to find anyone who thinks they are being governed by an organization known for its efficiency and wise spending habits.


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