Taxing Students For Past Mistakes

Pittsburgh’s financial problems are such that it gave rise to the Intergovermental Cooperation Authority(ICA) – formed by none other than, perennially in-deficit Governor, Ed Rendell. The ICA was put in place 5 years ago to solve Pittsburgh’s financial worries. Five years later, with an ever increasing budget deficit and a bankrupt pension system, the city is still trying to solve its financial worries.

As is customary in politics these days, the only prescription for the over-spending disease seems to be more taxation. In fact, taxation in any form, if not passed, is deemed detrimental to the future of the state. Such is case in Pittsburgh, giving rise to a new tax – a one percent tuition tax on post-secondary school tuition. 

Although the idea of covering deficits by increasing taxes comes from academics at large educational insitutions, the brunt of this tax eventually falls on the student and their families. Tuition hikes have occured regardless of taxation, but this additional tax further squeezes the income of families and businesses, deterring saving and investment. 

Yet the mayor of Pittsburgh, Luke Ravenstahl presses ahead. While the current budget wont include the tuition tax, he already has it in the works and will look to implement in the following year’s budget.