Taxing Our Way Out of Homelessness?
With all of the finger pointing during this current Presidential campaign on who is raising taxes and who isn’t—and it’s even more complicated than that, like which levels of income, which taxes are repealed, etc.—no one on a national level is suggesting raising taxes to end homelessness.
But there is an innovative county in America that is doing just that. The Miami-Dade County has a tax for those eating at restaurants. The logic is that tourism gets hit the hardest if there are homeless people sleeping around dining and retail establishments. They also benefit the most, if homelessness is reduced. So why not pass on the cost to their customers?
Here is how it works:
A 1 percent tax is added to the bill at establishments with a liquor license that make more than $400,000 per year in revenues. The tax, originally projected to generate $6 million, produces approximately $13 million a year.
The money goes into a trust fund controlled by community stakeholders. And the funds are part of the implementation of the county’s Ten Year Plan.
County officials say that since 1993, when the tax was implemented, homelessness has been reduced by 87%.
The topic of taxes is practically taboo, especially given the current hard economic times. But if it actually helps business, and reduces the number of people living on our streets, it can’t be that bad…
(Pic from www.miami-realestateguide.com)
But there is an innovative county in America that is doing just that. The Miami-Dade County has a tax for those eating at restaurants. The logic is that tourism gets hit the hardest if there are homeless people sleeping around dining and retail establishments. They also benefit the most, if homelessness is reduced. So why not pass on the cost to their customers?
Here is how it works:
A 1 percent tax is added to the bill at establishments with a liquor license that make more than $400,000 per year in revenues. The tax, originally projected to generate $6 million, produces approximately $13 million a year.
The money goes into a trust fund controlled by community stakeholders. And the funds are part of the implementation of the county’s Ten Year Plan.
County officials say that since 1993, when the tax was implemented, homelessness has been reduced by 87%.
The topic of taxes is practically taboo, especially given the current hard economic times. But if it actually helps business, and reduces the number of people living on our streets, it can’t be that bad…
(Pic from www.miami-realestateguide.com)
posted by LA's Homeless Blog at
9:19 AM
3 Comments:
what does the tax money go towards? homeless shelters?
I think you have the right idea - but what if instead of taxing businesses you just redirected the money they are going to spend anyway? Give2Network.com has a toolbar that allows you to use searches and shopping to benefit the non-profit of your choice. I switch between two charities because I can't decide which to give to more, PETA or The Giving Spirit (non profit group that helps homeless people in LA). The toolbar uses Yahoo's advertiser dollars and gives money from searches and shopping to the charity you register your toolbar to. I think free charitable giving methods like this are better when an economy is down, simply because if you simply redirect where the money is going instead of gouging more, it's better in the end for everyone.
Joel,
This seems like a fantastic idea. Why cant we get a proposal like this to pass in the L.A. region? City Hall needs to step it up.
Caleb Childers
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