Comedian Tries to Teach Kids About Taxes at Halloween

Over the weekend The Tax Foundation blog posted a funny video about how to teach children about taxes after they get home from tick or treating. Check out the embedded video below.

Californians Divided Over Paying Higher Taxes to Prevent Public Education Cuts

The Public Policy Institute of California conducted a poll earlier this week to gauge how taxpayers in the state felt about paying higher taxes to prevent major cuts to public education. According to the California Independent Voter Network although Californians are concerned about cuts to education, they remain wary of paying higher taxes to fund what is needed to prevent those cuts. Check out a section of their analysis of the pool below.

Californians today are more likely to believe that funding for their local schools is inadequate, and parents who send their children to public schools believe that the state budget cuts have had a big effect on their children's schools. Among ethnic groups, Blacks and Whites are far more likely to believe that the quality of education is a problem as compared to Asians and Hispanics. Blacks and Hispanics are much more likely than Whites to be worried about the quality of education.

Californians also want education to be protected from spending cuts and believe gubernatorial candidates’ positions on education are important. Despite this all of these concerns, Californians are split on whether to pay higher taxes to restore the cuts.

Here are some highlights from the poll:

62 percent believe there is not enough state funding going to their public schools, a 12 point increase since April 2009, while 26 percent believe there is just enough, 6 percent more than enough.

Continue reading at CAIVN.org…

Pittsburgh Won't Tax Tuition; Nonprofits to Donate

As I explained in this blog entry from early last week, the city of Pittsburg, PA had been considering a first-in-the-nation tax on college tuition fees. Fortunately, the city’s officials have decided not to move forward with this highly unpopular tax increase. According to the Associated Press, they ditched the tax after two universities and a nonprofit health insurance company agreed to make large financial contributions to the city.

Mayor Luke Ravenstahl hopes the contributions from the University of Pittsburgh, Carnegie Mellon University or Highmark Inc. will serve as a catalyst to get other nonprofits to help the city financially.

Ravenstahl had called for the 1 percent tuition tax on the city's 65,000 college students as a way of getting money to help pay for some $15 million a year for the city's pension obligations.

Nonprofits are exempt from most taxes, but represent many of Pittsburgh's major employers and hold about one-third of the city's property value.

Neither the mayor nor the three institutions would disclose how much they would give, but Ravenstahl said he was optimistic the money would help resolve the city's long-standing financial problems.

"This is a leap of faith for all of us. The future of our city and our citizens is riding on it," he said.

A First-in-the-Nation Tax on College Tuition

Tuition fee increases are fairly common on college campuses lately, despite the uproar they usually provoke from students. However, the city of Pittsburgh is considering a different way to increase revenue from college tuition. They are hoping to impose a 1% local tax on tuition, which would make Pittsburgh the first place in the country to ever tax college tuition fees.

This announcement has frightened students, and taxpayers across the nation who fear that if the measure is passed that it will set an example for other government agencies to follow suit. According to the New York Times the Pittsburgh City Council is set to vote on the tax on Monday, which is expected to generate over $16 million in additional revenue for the city.

“It’s really a disappointment that we’re in this situation,” Mr. Ravenstahl said. “Our colleges and universities are giving less and less while they increase tuition and executive pay and expand their campuses, removing high-value land from the tax rolls. The cost to provide public safety and public works services continues to increase, but our revenue continues to decrease.”

The tax, which would take effect as early as July, would range from about $20 a year for students at cheaper schools like the Community College of Allegheny County to just over $400 for students at the city’s priciest university, Carnegie Mellon.

Other cities, like Boston and Providence, R.I., have also considered taxing college tuition, Mr. Urbina reports.

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Americans Failing Taxes 101

From CNN.com:

Americans may like to talk about taxes but according to an annual survey by The Tax Institute at H&R Block (NYSE: HRB), most can't answer even the most basic tax questions correctly.

"Given the current economic climate -- and the need for taxpayers to claim every tax credit and deduction they're due -- the survey results are alarming," said Amy McAnarney, executive director of The Tax Institute at H&R Block. "The bottom line: Americans are failing Taxes 101."

The Tax Institute survey assessed the knowledge and opinions of a nationally representative sample of more than 1,000 U.S. adults, and found the majority doesn't know a credit from a deduction and, even more surprising, they aren't completely sure how much they even pay in taxes.

"Americans will spend more this year on taxes than food, housing and clothing combined," said McAnarney. "While they may clip coupons or negotiate their mortgage, most don't pay attention to their largest bill -- their taxes. This could be especially troublesome for people who prepare their taxes themselves or don't check their tax professional's credentials."