HeraldNet: Taxes are the wrong solution for too much public spending

HeraldNet: Taxes are the wrong solution for too much public spending
"Pittsburgh is wrestling with an interesting financial issue that is lurking in every city hall, county seat and state house in America.
It is largely silent and unseen, although it does give off its own distinctive scent.

It is the cost of funding the retirement of public employees.

Recently, the mayor of Pittsburgh was faced with a budget that was out of balance by the $15 million needed to fund the public employees retirement fund. This is, generally, a legal obligation, not a discretionary expenditure — a “fixed cost.”

The mayor’s solution was to propose a 1 percent tuition tax. This set off protests from all sorts of people — students at first, then educational institutions — and the usual threats of litigation."