I usually don’t think much of Chris Christie. He isn’t a conservative and isn’t much of a ‘Pub, either. But today, he uttered a statement that I can agree upon. Finally!
“Some colleges are drunk on cash and embarking on crazy spending binges, just because they know they can get huge revenues from tuition.” — WSJ
In this case, Christie is right. College tuition is caught in a feed back loop. Colleges charge thousands of dollars for tuition, far beyond the means of most families. The students then file for student loans and get them. The student loans pays for the tuition. The colleges and universities, realizing they have a cash cow available in the form of government sponsored student loans, feel no restraint on raising tuition again each year.
In the mid-’60s when my wife and I went to college, we both had a teaching scholarship. Southern Illinois University, at that time, was on the quarter system, Fall, Winter, Spring and Summer quarters. My tuition costs—which included text book rental, $112 for an in-state resident. The scholarship paid for all of that except for a $12 Student Activity fee. I paid more for room and board, $298 per quarter, than I did for tuition. I also worked 40 hours/week, part-time for the university for the grand sum of $0.95 per hour. I went to school full-time and then worked 40 hours for those expenses not covered by tuition nor dorm.
Tuition for today’s colleges and universities should be investigated for RICO violations because today’s tuition is a racket.
You’ve heard, no doubt, that St. Louis and Kansas City want to raise the minimum wage. Regardless of all the nonsense about a ‘living wage’ that such entry level jobs were never meant to fulfill, there are other reason why these metro areas want the pay increase—more money in the city coffers.
Letter-to-the-Editor, June 12, 2015
Mayor Francis Slay of St. Louis is asking the Board of Aldermen to pass legislation mandating a near doubling of the current minimum wage from $7.65 to $15 an hour for certain businesses operating in the city by 2020 (“Slay seeks to increase minimum wage in city,” June 3). Naturally, this will undoubtedly appeal to all those who buy into this demagogic charade of equality and “fairness” by politicians and their followers of the Left.
But aside from undeniable economic facts, that prices will go up and seniors on fixed income will be hurt, there is something else that will result that I have not heard being talked about.
Consider, when you virtually double the current minimum wage, can you guess what benefits the city of St. Louis will receive? If you said that with higher wages comes higher tax revenue from the city earnings tax along with increased payroll tax revenue that will go to the state of Missouri, then go to the head of the class. If you add that increase wages mean higher sales taxes, you are clearly a summa cum laude candidate.
What Sleight-of-Hand Slay is attempting to do without saying so is to generate additional revenue while seeking to avoid being accused of raising taxes. Wonder if anyone else has caught on to this?
In the case of Kansas City there is an additional tax, the 1% (or is it higher now?) city income tax. If the minimum wage is increased, the city will get more revenue from its income tax.
When you get to the bottom line, it’s always about collecting more taxes. Involuntary taxation is nothing more than theft by other means.