Tag Archives: government

Digging into the moral reasons the American middle-class doesn’t like paying taxes

Posted on by

A new sociology study looks at the moral opposition middle-class Americans have to taxes. Here are some of the main findings:

“In this study, we demonstrate how people associate the income tax with a violation of the moral principle that hard work should be rewarded,” he added. “Our research has implications for how policymakers should frame fiscal issues. Because people intertwine fiscal issues with morality, approaches to tax policy that only emphasize economic benefits for the working and middle classes do not resonate with everyday understandings about what taxes mean to people.”…

Interview respondents saw themselves as morally deserving and hard-working people, whereas they perceived a tax structure that benefits the idle poor and the idle rich…

Respondents frequently associated their earliest memories of taxation with their first jobs, or wage labor, which in turn was associated with the absence of personal autonomy and dignity, or the ability to control one’s own time and work…

Hard work was viewed as a virtue, and respondents didn’t like idea of being taxed while they work, instead speaking in favor of a flat tax on consumption. “Tax whatever,” one respondent told the researchers. “Don’t take my paycheck.”

A note: the study is limited to a particular sector of the American public. Here is the study group: “24 semi-structured, open-ended interviews with white Southerners who owned or managed small businesses—a demographic group that is typically anti-taxation.” This study has a small N and a targeted group so this limits its generalizability but its value seems to be in hearing how people talk about and understand taxes.

This is another reminder that money is not typically exchanged in solely neutral economic transactions: there is a lot of social and moral weight in economic transactions. Thus, when talking about taxes, policy makers and citizens are making moral arguments in addition to straight-up financial arguments. This applies to some of the current budget debates in the United States: the two sides may be talking some about fiscal issues but there are also underlying moral issues about how money should be used, how it should be acquired, and more broadly, how social life should work.

 

NATO blunder or deep-seated Chicago wish to be recognized as the capital of Illinois

Posted on by

I know a lot of people were having fun at NATO’s expense yesterday after it made several errors in a video ahead of the upcoming summit in Chicago. One of them was particularly interesting:

A video about Chicago posted Thursday on the website of NATO’s in-house television news network, Natochannel.tv, could leave leaders fumbling the facts at the international water cooler.

First, there’s the matter of Illinois’ capital city.

“More than 60 heads of state and government will meet to discuss crucial matters of security and stability in the Euro-Atlantic area,” a narrator’s voice says as the five-minute video plays panning shots of Chicago. “And so, the leaders of the member nations of the organization created by the 1949 Washington Treaty will meet in the capital of Illinois this time.”

What in the name of Abraham Lincoln? The summit was moved to Springfield?

While the capital of Illinois is indeed Springfield, I wonder if this doesn’t hint at a secret wish of Chicagoans for the city, whose region has roughly 70% of the state’s population, to be the actual capital. As the most populous city as well as the economic powerhouse for the state, why not simply move the government operations there as well? Doesn’t Chicago effectively function as the capital anyway? Now I know official state business takes place in Springfield but think about the power and influence politicians from the Chicago area wield. Think of the economic impact Chicagoland has on the state. Think of the images many Chicago area residents have of those who live “downstate.”

An argument could also be made about the need to move capitals to reflect changing realities. Springfield wasn’t the first capital in Illinois and the earlier capitals were all further south, reflecting where the population of the state was at the time. Indeed, Chicago was a small community into the late 1830s and northeastern Illinois was relatively unsettled compared to the rich farmland further south. Geographically, Springfield made sense. I think you may be able to apply some of this geographic logic to a few other state capitals as well such as Albany compared to New York City and Sacramento compared to Los Angeles or San Francisco. Going even further, Washington D.C. emerged as a new city because of a compromise between different factions (Alexander Hamilton’s wished for the nation’s capital to be a big city, New York City specifically). Imagine what a powerhouse New York City could be in global city rankings if it also had Washington D.C.’s share of governmental influence? (Ironically, the United Nations, the foremost global governance organization, is based in New York City even as the capital of the United States is not.)

Granted, you would expect an organization like NATO to get the capital of Illinois correct. But perhaps their error simply reflects what Chicago leaders think…

Washington D.C., not Chicago or LA, the real “second city” of the United States?

Posted on by

Perhaps Chicago should be worried about moving to #7 in a ranking of global cities: here is an argument that the real “second city” of the United States is not Chicago or Los Angeles but rather Washington D.C.

“I don’t think most people in the U.K.have any idea where Chicago is,” said Rowan Bridge, a BBC Radio producer who last year spent six months based in Washington D.C. “Most people in England think the United States consists of three cities — New York, Washington D.C., and Los Angeles — because they’re the ones that run the media, they’re the ones where the celebrities hang out, they’re the ones where the politicians are.”

Rosenthal notes that Chicago has long worried about its image, and it has never been a top global tourist destination, but a recent drop in international visitors highlights the challenge even a colossus like Chicago faces in getting its word out in a competitive global economy.

Reading this, it once again strikes me that the old urban hierarchy is being reordered by globalization and the dramatic expansion of the US federal government, to the disadvantage of Chicago and other cities. This, I believe, helps account for its recent struggle.

Joel Kotkin has tirelessly documented the remorseless rise of Washington, DC, rain or shine, in a manner defiant of business cycles. Washington, once a sort of commercial backwater, is now becoming much more a national capital of the type other countries have had…

So we have New York entrenched as America’s first city, and Washington, DC increasingly its new “Second City.” Los Angeles, which seems to have never quite recovered from the early 90s defense draw down, and Chicago with its 2000s malaise, seem to be the victims of DC’s rise. Another loser is Boston, which has seen its status as a financial hub decline and whose Route 128 corridor of tech, having first lost out to Silicon Valley, now appears to be losing out to NYC.

One way you could take this argument: politics and the power and money involved has increased in importance in recent decades. Hence, Washington D.C. has grown in importance because more is dependent on what takes place there. Interestingly, the rankings I discussed yesterday assign the lowest weight to the government: 30% is business activity, 30% is human capital, 15% for information exchange, 15% for cultural experience, and 10% for political engagement.

If that quote from Rowan Bridge accurately represents how people view the United States, what could Chicago do to stand out moving forward? Historically, Chicago has been known for several things. It was a true American boom city (particularly coming out of the Chicago Fire – this is clearly not the case today after population loss during the 2000s). It was and still is a transportation center as air, rail, truck, and ship traffic merge in the middle of the country. It has been known for financial innovations, such as selling and trading commodities, as well as architectural innovation (such as the International Style). Others have suggested it is “the most American city.” It has also been known for less noble things such as gangsters, segregation, corruption, the 1968 Democratic National Convention, and more recently, budget deficits. Mayor Emanuel and other leaders have work to do to help Chicago tread water and maintain its place among global cities…

Argument in Ottawa, Canada for parking as a human right

Posted on by

Here is an overview of an argument made in Ottawa, Canada for the human right for a parking spot:

In a novel case before the Human Rights Tribunal of Ontario in Ottawa Monday, Ms. Howson argued that the city discriminated against her on the grounds of family status by not letting her build a parking pad in front of her house.

But city lawyers argued that Ms. Howson has never applied for a minor variance from the city’s committee of adjustment — the body legally able to consider her request — so she actually has never been denied anything…

Ms. Howson shares with a neighbour a narrow driveway that varies in width from 2.6 to 2.78 metres. It’s technically possible for her car — a 2.25-metre-wide Mazda 5 — to squeeze through the laneway.

But such manoeuvring is difficult at the best of times and impossible in winter because of snow and ice buildup, she said.

Under the current zoning, front-yard parking isn’t permitted on her street, which is in a heritage preservation district.

However, exceptions can be granted under certain circumstances.

Two years ago, Ms. Howson — a former investigator with the Ontario Human Rights Commission — approached the city to see if it would grant an exemption based of her family’s “special circumstances.”

The city’s refusal “constitutes discrimination on the grounds of family status,” she said.

While some might dismiss this quickly because it is a trivial application of the idea of human rights, this does seem like a bigger issue of zoning and who can grant exceptions. This woman may not win by casting this as a human rights issue but her argument does highlight how zoning and preservation districts can conflict with modern wants. Zoning may be an helpful tool for governments on a broad scale, but it also can lead to a large number of requests for variances and changes for specific properties and political accusations about who gets awarded variances and how long the process takes.

Also, this is a reminder of how important the car is in today’s society. In order to get around in many communities, a car is required and one needs a place to park a car. How much one should have to be inconvenienced or have to pay to park their car is another story but it does have to be factored into discussions about having and promoting an automobile society.

Odd statement: “Only 2.8% of your property tax bill goes to DuPage County”

Posted on by

Two days ago, our household received the quarterly newsletter from DuPage County. While the front page of the DuPage Review trumpets “DuPage County Cuts $10.7 million from 2012 Budget,” the back page had this interesting statement: “Did You Know? Only 2.8% of your property tax bill goes to DuPage County.” See the figure below:

What exactly is the County trying to convey here? Pointing out this figure means: (a) you should not be concerned at all since this is a small amount (b) you should not care much if we ask for a little more (c) you should be impressed that we use such a small percentage, particularly compared to other taxing bodies. .

The focus here is on the small number (only 2.8%!) but it might also lead a lot of people to ask what my wife asked: why does the County need 2.8% anyway? The rest of the newsletter offers some hints: taking care of county roads, dealing with stormwater, and facilitate things like senior services and electronic recycling. The county budget for 2012 is $434.7 million and you can find more specific details here.

I wonder how many DuPage County residents know what goes on at the county level. Outside of occasional local issues, how many people actually have to be concerned about what the County does? Add in the fact that Illinois has the most local taxing bodies in the country (outpacing second place Pennsylvania by over 2,000) and it can be really hard to figure out how the County, township, Forest Preserve, Park Districts, municipalities and the other taxing bodies fit together and utilize property tax money.

New economic plan for Chicago region from Emanuel, World Business Chicago

Posted on by

Chicago Mayor Rahm Emanuel announced a new economic plan for the Chicago region earlier today:

What’s clear from the 60-page report is that the city is aiming to shake up the status quo. Too many agencies have been making uncoordinated efforts to boost economic development, the report finds, and greater collaboration is needed. Job training programs have not been well-aligned with employers’ needs and should be tailored to specific job demand. And new funding models are needed for infrastructure and transportation projects, given the economic times.

“A global city like Chicago needs a clear set of goals, a clear framework for analysis and clear strategies for economic growth and the creation of jobs,” Mayor Rahm Emanuel said in a statement…

It is one of two major regional planning endeavors that has been under way for months. Next week, the Chicagoland Chamber of Commerce will unveil the results of a study conducted by the Paris-based Organization for Economic Cooperation and Development (OECD), of how the region can better compete in the global economy.

Read the executive summary of the plan here.

A few quick thoughts on the plan:

1. I’m not particularly surprised by any of the 10 primary suggestions. What seems most pertinent here is that the plan is regional and wants to leverage the assets of the whole region for this one plan.

2. It seems to me that the trick will be uniting all of the local governments and taxing bodies in order to work on this plan. Some of the recent battles in Chicagoland indicate that this will not be easy: the battle over the expansion of O’Hare Airport and the battle over the purchase of the Elgin, Joliet, & Eastern railroad tracks by Canadian National. Perhaps this most recent economic crisis presents an opportunity – after all, Emanuel is well-known for saying, “You never want a serious crisis to go to waste” – where even the wealthier suburbs will want to tackle these issues together. Balancing all of these interests will be difficult as will having the right kinds of structures to enact change across communities.

3. This reminds me that while Mayor Emanuel may be considered liberal by some, he is pro-business in a similar way to President Clinton and other more moderate Democrats. This plan comes out of the World Business Chicago group that Emanuel has tapped to help lead Chicago forward. Emanuel’s vision may have more governmental involvement than some would like but matters like infrastructure are already government’s concerns and if managed well (which includes preparing for the future rather than simply trying to keep up today), can help everyone else succeed. If this plan is a success and the Chicago region continues to be or even builds upon its standing as a world-class city, Emanuel will be remembered fondly by many on both sides of the political aisle.

4. I would be curious to know how many plans like this have been developed in the past, how many were successfully followed, and how many were successes.

5. There are a number of groups who do regional planning in the Chicago area, such as the Chicago Metropolitan Agency for Planning which has its own Go to 2040 Plan, and I wonder how they will respond to this plan.

Why the Washington Metro doesn’t yet reach Tysons Corner

Posted on by

As part of an argument that seems to really be about the difficulties of large-scale bureaucracies in responding to change, Michael Barone explore why the Washington Metro has had difficulty in reaching suburban destinations like Tysons Corner, the prototypical edge city.

Continue reading →

A bad week for sociologists in prominent government positions?

Posted on by

Two stories from this week suggest it might not have been the best week for sociologists who are in prominent government jobs.

First, in Greece, George Papandreou resigned as Prime Minister. From earlier this week:

“Today I want to send a message of optismism to all Greeks. Our road, our path, will be more stabilised. Our country will be in a better situation. We will be stronger,” Mr Papandreou said in the televised address.

Philippos Petsalnikos, current speaker of the Athens parliament, has been widely tipped to replace Mr Papandreou as prime minister. Although Mr Papandreou did not name a successor, he added:

“I want to wish every success to the new PM and the new government. I will support this effort with all my strength.”…

Pressure has mounted on Greece’s two main political parties this afternoon to wrap up three days of critical power-sharing talks and name a new prime minister to take over at the helm of an interim government.

Papandreou has a sociology background.

Second, here is a fairly critical review of Ireland’s president-elect:

Michael Higgins, the President-Elect of Ireland, has lived a very comfortable life sucking on the government teat. He began his adult life as a sociologist in academia. He then moved into politics, and for decades enjoyed lucrative pay as a member of the political elite (well above $100,000 annually in recent years).

Now he’ll pull in more than $300,000 per year for a largely ceremonial job as Ireland’s President. As the old saying goes, nice work if you can get it. This guy’s definitely part of the top 1 percent.

He’s also an economic illiterate or a cynical hack who apparently thinks noble poverty is a good idea for the other 99 percent.

Here is a quick overview of Higgin’s academic background from Wikipedia:

Higgins holds a graduate degree in sociology. In his academic career, he was a Statutory Lecturer in the Department of Political Science and Sociology at University College Galway and was a Visiting Professor at Southern Illinois University. He resigned his academic posts to concentrate fully on his political career.

Perhaps Anthony Giddens can ride in and save the idea for prominent sociologists in higher levels of government?

KPBS San Diego on Proposition 13

Posted on by

The great property tax revolt of 1978 in California has had a big impact on American politics. KPBS in San Diego put together a number of reports on the history and legacy of Prop 13. You can also find a number of other interesting videos if you search YouTube. The Wikipedia entry gives a decent overview.

When I showed one clip to my American Suburbanization class, I was struck again by how much of the rhetoric from both sides matches current political discussions: a desire to cut lard from the government and save the middle class versus providing needed money for social services and asking people to pay their fair share. This is an issue that still hasn’t been decided and is particularly pertinent today in an era of budget shortfalls.

Building libertarian cities in the middle of the ocean

Posted on by

This has been talked about for a while but here is a brief update on independent libertarian cities to be built in the oceans:

Pay Pal founder and early Facebook investor Peter Thiel has given $1.25 million to an initiative to create floating libertarian countries in international waters, according to a profile of the billionaire in Details magazine.

Thiel has been a big backer of the Seasteading Institute, which seeks to build sovereign nations on oil rig-like platforms to occupy waters beyond the reach of law-of-the-sea treaties. The idea is for these countries to start from scratch–free from the laws, regulations, and moral codes of any existing place. Details says the experiment would be “a kind of floating petri dish for implementing policies that libertarians, stymied by indifference at the voting booths, have been unable to advance: no welfare, looser building codes, no minimum wage, and few restrictions on weapons.”…

The Seasteading Institute’s Patri Friedman says the group plans to launch an office park off the San Francisco coast next year, with the first full-time settlements following seven years later.

While this sounds like some post-apocalyptic scene, these cities could provide an interesting Lord of the Flies situation. Even though these places will (or may) be built in order to escape regulations, they will have to adopt rules and norms of their own in order to survive. I will be interested to see what sort of society will develop in these new cities.

I also imagine that someone will try to control what happens on these islands. Although these places may be in international waters, I think there will be a discussion about how these rules should be altered. Won’t someone want to tax what happens on these islands or to make sure that they are not national security threats?