Promises, Teachers, and Taxes
Jun. 29th, 2010 12:48 amA while ago, the Michigan state legislature decreed that all teacher would have to pay 3% of their salaries to the State as a retirement fund. The Michigan Education Association opposed this, as you may imagine. 3% doesn't sound like much as a percentage, but in my case, it works out to losing $270 per month, every month. That's out of take-home, not gross, I might add.
Can you afford to lose $270 per month? Neither can I.
But it gets worse. The law only states that teachers have to pay the money. It doesn't state that the money must be used for teacher pensions. In other words, the legislature can raid that fund whenever they like for any reason they like. There's no guarantee the money will be there for me when I retire.
"Oh," people say, "they wouldn't dare touch it."
Sure. Just like the federal government wouldn't dare raid Social Security, or the State of Michigan wouldn't dare raid the school aid fund.
However, the MEA sued the State. Their argument went something like this: "The money is not by law guaranteed as a retirement fund, which means it's nothing but a tax on teachers. It's unconstitutional in Michigan to levy a tax on a single type of employee. This law is unconstitutional and should be overturned."
The State's response? "Piffle! The money is there for retirement purposes, and we wouldn't ever touch it. We totally promise."
The case is still pending. However, the Ingram County judge who reviewed the case did rule that all the money has to go into a special holding account, where no one can touch it. And the politicians wince and give fake smiles. "That's for the best, Your Honor. Of course, of course."
We'll see if the law gets struck down, but in the meantime, I lose $270 per month.
Can you afford to lose $270 per month? Neither can I.
But it gets worse. The law only states that teachers have to pay the money. It doesn't state that the money must be used for teacher pensions. In other words, the legislature can raid that fund whenever they like for any reason they like. There's no guarantee the money will be there for me when I retire.
"Oh," people say, "they wouldn't dare touch it."
Sure. Just like the federal government wouldn't dare raid Social Security, or the State of Michigan wouldn't dare raid the school aid fund.
However, the MEA sued the State. Their argument went something like this: "The money is not by law guaranteed as a retirement fund, which means it's nothing but a tax on teachers. It's unconstitutional in Michigan to levy a tax on a single type of employee. This law is unconstitutional and should be overturned."
The State's response? "Piffle! The money is there for retirement purposes, and we wouldn't ever touch it. We totally promise."
The case is still pending. However, the Ingram County judge who reviewed the case did rule that all the money has to go into a special holding account, where no one can touch it. And the politicians wince and give fake smiles. "That's for the best, Your Honor. Of course, of course."
We'll see if the law gets struck down, but in the meantime, I lose $270 per month.