Sociology prof behind San Jose measure to raise business taxes

Sociologist Scott Myers-Lipton has worked to raise business taxes in San Jose:

With little discussion, the council unanimously approved putting a November ballot measure before city residents that would double annual business tax revenue from $12.7 million to $25.4 million. But the business tax voters will decide differs significantly from what Scott Myers-Lipton, the San Jose State University sociology professor who had led a successful 2012 campaign to raise the minimum wage in the city, had proposed last year.

Myers-Lipton was close to gathering enough signatures to qualify his measure for the ballot, but withdrew it to allow for the city compromise measure.

The measure the council approved for the ballot would increase the annual “base rate” businesses pay by $45 and then charge companies with three or more employees $30 to $60 for each worker, depending on the company’s size, capping at $150,000 a year. It would include inflation adjustments. The city’s current tax is $18 per employee for companies with eight or more workers without inflation increases and caps at $25,000.

Myers-Lipton’s proposed measure would have charged large companies based on their gross receipts, either 60 cents, 90 cents or $1.20 for every $1,000 in revenue. The model, he argued, has been successful in other large cities like San Francisco, Oakland and Los Angeles. A city study estimated the change would put an extra $39 million annually into the city’s pocket for services like public safety, roads and libraries.

It sounds like a typical political conversation about taxes. On one side, proponents argue that businesses should pay more, particularly when needed local services are on the line. On the other hand, proponents suggest businesses will leave and/or not locate in San Jose and instead locate in places with cheaper taxes.

Yet, does it make any difference that this tax proposal was brought forward by a sociologist? Conversations about public sociology sometimes suggest that sociologists have limited ability to bring about policy change. This would seem to be a positive example: sociologist who helped bring about a raise in the minimum wage now has a chance to help pass an increased tax on businesses. Both measures could be viewed as moves toward lessening inequality; this is a cause that many sociologists would support. At the same time, do Myers-Lipton’s moves differ much from typical liberal proposals?

Perhaps many businesses in San Jose can afford such an increase with the wealth in the area. Such a tax may not hurt very much in a thriving area compared to a struggling Rust Belt city.

Sociology class project in San Jose leads to succesful vote in favor of raising the minimum wage

Following up on a previous story on this blog, voters in the city of San Jose approved a minimum wage hike to $10 that began in the sociology department of San Jose State University:

San Jose voters on Tuesday agreed to increase the city’s hourly minimum wage to $10 — $2 above the statewide floor, siding with proponents of the measure who said it was necessary in order for low-income workers to survive in an increasingly pricey tech-based economy.

With all precincts counted, nearly 59% of voters had approved the measure, making San Jose only the second municipality in California and the fifth in the nation to set its own minimum wage. The others are San Francisco, Washington D.C., and Santa Fe and Albuquerque, N.M.

The measure was the brainchild of San Jose State University sociology students and was promptly embraced by labor organizations, which spearheaded the campaign…

The San Jose Silicon Valley Chamber of Commerce and other business groups had opposed the measure, saying it would force employers to slash worker hours and cut jobs, as well as discourage new businesses from moving in. The arguments were similar to those made in San Francisco, which has phased in a similar measure passed by voters in 2003. Its hourly minimum wage stands at $10.24 and will increase to $10.55 in January.

Now it will be interesting to watch what happens in San Jose after the passage of this measure. San Jose is an important place: it is the 10th largest city in the United States with close to a million residents, has strong connections to the high-tech community, and is a “re-emerging immigrant city” with a high proportion of foreign-born residents.

Also, what do you do for an encore in a sociology class or program after helping make this happen?

What a sociology class can do: help develop a minimum wage initiative for San Jose

I’m always intrigued by sociology class projects that go beyond the classroom. Here is an example from San Jose of a class project that will be on the ballot this November:

The proposed San Jose measure would raise the hourly minimum wage in the city from the current $8 state requirement to $10 with yearly inflation adjustments. It is modeled on San Francisco’s 2003 minimum wage law, which includes annual inflation adjustments that raised the floor this year on that city’s pay rate 32 cents to $10.24 an hour.

The idea behind the San Jose ballot measure originated among students in a San Jose State sociology class taught by professor Scott Myers-Lipton.

In late March, the students, together with labor leaders and community organizers, submitted 36,225 signatures to the registrar’s office. Proponents needed at least 19,161 valid signatures of registered city voters to qualify for the November ballot, and at least 19,518 were found to be sufficient.

“The students and I are thrilled that it qualified and that we received the support of the community at large, from labor, faith and community based organizations in this effort,” Myers-Lipton said Tuesday.

I can imagine some of the public conversation about this: college students in a sociology class (already considered a liberal discipline) team up with local activists to introduce this bill? At the same time, might this be considered good experiential learning as students are learning about local politics and how they can get involved?

Here is some more information on how the class got involved:

As part of Myers-Lipton’s Sociology 164 course on Social Action, students studied President Franklin Delano Roosevelt’s proposal for an Economic Bill of Rights. As student activist Elisha St. Laurent explains, “The economic bill of rights guarantees everyone a job, a living wage, a decent home, medical care, economic protection during sicknesses or old age or unemployment.” The minimum wage campaign is a practical way of making some of these guarantees more attainable for San Jose residents. “We’re trying to link the economic bill of rights to inequality in the San Jose area,” she says.

As the mother of a five-year-old boy and someone who is working to pay for college, St. Laurent has experienced the realities of the low-wage economy directly. “Especially as a single mother,” she says, “you know I’m continually struggling. I’m always working minimum wage. Right now I make $9.25, so it would be a 75-cent increase for me. But an extra $100 or $200 in my check would make a difference. It’s making sure that I have gas in my car so that I can take my son to school, and then still being able to pay my bills.”…

As the students moved forward with the idea, they found significant partners such as Working Partnerships USA, a think tank for public policy that affects working class families, the NAACP and the local faith-based group Sacred Heart Community Service.

Myers-Lipton explains, “Early on, there was a discussion that occurs in any campaign asking, ‘Is this winnable? Is it worth putting in all the effort.’ At that point [Sacred Heart Executive Director] Poncho [Guevara] said, ‘You know, win or lose, we need to put forward a vision of what we stand for. We need to be putting our vision forward rather than  always being on the defensive. So even if we lose, we’re going to win in the long run.'”

It sounds like these students are taking their readings and trying to put some of the ideas into practice. It would be interesting to hear how much they have learned about sociology or a sociological perspective throughout this process.