[About Us][Affordable Housing Bulletin][CLTs][Co ops][Day for Housing][Fair Housing][HANDS!][Housing in a Hurry][Housing Journal][Join Us!]
[Landlord Tenant Code][Links to Friends][Living Wages][Manufactured Housing][Plans][Publications][Realities of Poverty][Tenants Rights][Search]
 

 

 


Tax Reform and Housing Justice
Ted Keller
Winter 1998

Delaware politicians are offering their lollipop tax cuts again, sweet-toothin’ us voters. Their goal? Get reelected!

Well, tax cuts are not always sugar and spice and everything nice, not when your state’s bonded debt is $654 million! That amounts to a whopping $893-dollar burden for every Delawarean. The debt service presently is $92 million a year!

Across the country polls show the broad concern citizens have with the debt problem. In a new USA TODAY/CNN Gallop Poll, paying down the $5.5 trillion federal debt was backed by more people, 30%, than tax cuts, 22%. And 43% wanted to increase spending on Social Security, Medicare and education. The local press also reflects that more and more Delawareans are caring about social needs than tax cuts.

Taxes in Delaware are light compared to other states because we have general sales tax, a fight Citizens Coalition for Tax Reform began in 1973 to preserve. Tax fairness is a never ending struggle in Delaware. The power of big money pushes aside concerns of most of us; cutting taxes by Governor Tom Carper and the legislators is greeted with open arms by the wealthy interests who always benefit the most. The state lawmakers should make bold moves to reduce the debt and the $92 million debt service charge. Then there would be more funds available to improve the lives of those in need like:

AFFORDABLE HOUSING The state could fund mortgage pools where working Delawareans who need financial assistance to buy their first home, could borrow initial start-up costs and monthly payments, at very low interest. We know there is some help already available; we mean this on a much larger scale. Caring citizens should resolve to eliminate the damning fact that this wealthy state continues to live with the fact that, on average, 1200 citizens are homeless every night, according to University of Delaware studies...about a third are children.

HEALTH CARE INSURANCE About 110,000 Delawareans (about 30,000 are children) have no health insurance. How can reasonable people talk about tax cuts when we face up to these sorry facts?

ABOLISH NEED FOR SCHOOL TAX REFERENDA We feel that the state should take over the complete funding of state schools and spare all Delaware taxpayers the hassle of school tax referenda. The state already funds 70 to 80% of the total operating costs of schools. We feel this wide distribution of funds is an equitable way to spend the peoples’ money.

AFTER SCHOOL, IN SCHOOL-PROGRAMS Citizens Coalition for Tax Reform suggests we could further utilize school buildings by continuing fun-time, learn-time, exercise-time--a varied menu of good programs for children who need direction or after-school care ‘til the parents come home’. This would call for special new staff, extra bus transport, etc. New costs to be sure, but we can afford them. We can serve benefits to kids and their families, or, accept the repetitious cry for more tax cuts. Kids off the street, increased family stability. Advantages for the society are numerous. Other states have found this a good answer to our changing way of life.

There are innovative ways to build a better state. Certainly we should not have to follow "the tax cut crowd" when so many needs are before us. If more funding is needed, we should turn to the upper income Delawareans for progressively higher taxes. What sense does it make to tax a state taxpayer making a taxable income of $50,000 at the same rate as a taxpayer making $5 million as is now the case? The across-the-board cuts always pushed by conservatives, chip away at progressivity and direct greater savings to the well off, all at a time when we know the rich are growing richer and the poor poorer. Bear in mind this fact: The richest 1% of the U.S. population owns 37% of the wealth, more than the bottom 90%!

Delaware’s lawmakers should get serious, "Spending" on a tax cut while we waste huge sums on borrowed money doesn’t make sense. And we don’t agree with House Majority Leader, Wayne Smith (R-Wilm), who stated in the Delaware State News last December 19,1997: "I am not concerned with the level of bonded debt. I am more concerned with our bond rating. Our bond rating has a direct effect on our ability to borrow...Delawareans love debt. It enables us to borrow for infrastructure, and by using debt responsibly, we are enabled to provide more for our residents."

We don’t think many folks would agree with Mr. Smith. I don’t understand how you use debt responsibly by borrowing and at the same time pass out tax cuts, which will make it necessary to borrow again. If the state runs surpluses we can reduce debt and strive for the best, an interest-free state economy. Along the way we should help those needing help rather than give tax relief to many who don’t need it. Life is full of choices. Some of us are just tired of choices made in the past that seem to carry on....like "trickle down economics."

Ted Keller has chaired Citizens Coalition for Tax Reform since 1973. He lives in Wilmington.