Quote:
Originally Posted by Parlay Slow
You are making a rather critical error in reasoning here. Saying that the state spends roughly 50% of its revenue on education is not the equivalent of saying that education derives roughly 50% of its revenue from the state. Please consider this point before posting further.
On the contrary, the vast majority of K-12 funding in the state of Georgia comes from the state revenue fund, and the biggest bucket of revenue is state income tax.
To clarify, are you standing by your earlier statement that the biggest bucket of education funding in Georgia (or elsewhere) comes from property taxes?
Regarding the state income tax being "highly regressive" -- it is a relatively flat income tax with your standard assortment of deductions, exemptions, and credits. So by definition it is a marginally progressive form of taxation. Where does "highly regressive" come from?
I'll get back to you on GA; Reading specifically about
OK finances (I was able to find good info there) property taxes are a lower portion of the education fund than I previously thought. Maybe local ad valorem taxes have funded a decreasing percentage over time, maybe OK isn't representative of the rest of the US, or maybe I just flat out had general structure of education funding wrong in my mind.
At any rate local ad valorem taxes are ~27% of the education fund and vehicle tag taxes (another ad valorem tax, although it's in the state bucket) are an additional ~5%; so not quite 1/3 of the education budget is funded through property taxes. A large amount but not as much as I previously thought.
In OK Federal dollars are another ~13% and the balance of ~60% is from the state level.
83% of state revenue is sourced from Sales and Gross Receipts taxes and Income taxes, with moderately more revenue from the former which is extremely regressive; The top bracket in the income tax is 8700.00 dollars which I would argue is regressive insofar as it places a much greater hardship the lesser the income due to the decreasing marginal utility of money, but I'll concede calling state income tax a flat tax is a more accurate, if imo flawed, descriptor.
Having said that my overall point stands:In OK, with 87% percent of school funding coming from the state and local level, whose tax systems are largely regressive, before people accept it as axiomatic that teachers are underpaid and therefore must receive a raise I'd implore you to think about where that money comes from.
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Combining all state and local income, property, sales and excise taxes that Americans pay, the nationwide average effective state and local tax rates by income group are 10.9 percent for the poorest 20 percent of individuals and families, 9.4 percent for the middle 20 percent and 5.4 percent for the top 1 percent.
Highest on those that can afford it the least.
Cite.