Dr. Murray Sabrin’s reading list (June 26, 2019)

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Repeal the income tax and provide quality education

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By Professor Murray Sabrin

In a recent Star Ledger column conservative pundit Paul Mulshine argues that Gov. Phil Murphy’s proposal to increase the income tax to 10.75% for individuals making more than $1 million a year so he can hike property tax rebates is terribly flawed.  Right on. 

The property tax rebate would only available to a senior homeowner or a disabled citizen making no more than $75,000 annually.  In New Jersey that would exclude a substantial number of homeowners, even those who make $75,001. 

New Jersey's income tax, which was enacted at the end of Gov. Brendan Byrne’s first term in 1976, although politically unpopular, set the stage for the governor to send out property tax rebates in 1977 just before his reelection.  In short, the governor deftly used homeowners’ own money to bribe them to win a second term. This is a classic example of democracy in action – – fooling people that they're getting something from the state, when in fact what the state was doing was taking money from the people’s one pocket and putting it in their other pocket.

The current debate over hiking income taxes on millionaire earners and increasing property tax rebates underscores the fundamental issue that both political parties are unwilling to address, namely how education should be funded and who should pay for it.

Although the state Supreme Court effectively imposed the income tax on the people of New Jersey, because the New Jersey Constitution calls for the state to provide a "thorough and efficient education" to all students especially in urban school districts, with the promise of property tax relief, the more than four decade experiment in the income tax has been a colossal failure. 

The first question that needs to be tackled is who is responsible for a child's education?  In a free society that means parents using all the skills and tools and resources at their disposal would educate children up to a certain point, when schooling would become more appropriate. 

The current model of public—compulsory--education is nearly 200 years old.  At one time public schools did a relatively outstanding job of teaching youngsters the 3Rs so they could become productive and financially independent individuals.  Under the auspices of so-called educational experts, social justice cultural warriors and massive political interference, especially from the federal government, public schools have become “politically correct” institutions for the past several decades.  In addition, the cost of public education in New Jersey has skyrocketed well above the rate of inflation since the income tax was enacted more than four decades ago.

The results in New Jersey urban school districts, where the cost of education rivals that of elite private schools, have been abysmal. Unfortunately, the clamor for more taxpayer dollars to prop up the expensive and relatively ineffective urban school systems needs to be questioned.

The lessons of the past four decades regarding funding New Jersey public schools should be obvious to any objective observer. First, the income tax should be repealed.  Two, teachers and parents should create nonprofit educational organizations in their communities to provide high-quality education to youngsters from K-12.  In addition, school property taxes should be repealed as well. There is absolutely no compelling reason for taxes to fund education.  Funding would come from fees, tuition, grants and other voluntary means.

The assertion that education is a "collective" responsibility is a bogus proposition. If this assertion is true, then the state should not stop at education but provide healthcare, housing, transportation, supermarkets, entertainment, and all other goods and services that people want.  In other words, is socialism the answer as Bernie Sanders and Rep. Ocasio-Cortez assert? 

Socialism is not the answer whether in education, housing, transportation, medical care and the dozens of other programs that all levels of government currently fund.  In a free market both the nonprofit and profit sectors would provide all the goods and services the public wants. That has been the history of America for more than 200 years.  But government has co-opted the free market for decades. 

Gimmicks like property tax rebates to soothe the pain of income taxes are counterproductive. The state income tax has become a political football and avoids the most important question in our society: what is the role of government in a free society?

With another financial crisis on the horizon as the current "everything bubble" will burst in the not-too-distant future, it is imperative that we look at the big picture, how can we create a free and prosperous society with an educated young generation without an income tax?  This is the debate that should be front and center in Trenton.   

Murray Sabrin is professor of finance at Ramapo College and author of the forthcoming, Why the Federal Reserve Sucks: It Causes Inflation, Recessions, Bubbles and Enriches the One Percent.  Sabrin was recently interviewed about his new book, http://www.sanfranciscoreviewofbooks.com/2019/05/cottogottfried-does-federal-reserve.html#more

Sabrin for Senate to start ad campaign next week

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We've noticed a lot of movement in  the camp of Libertarian U.S. Senate candidate Dr. Murray Sabrin.  The candidate, a professor of finance in the Anisfield School of Business at Ramapo College, indicated yesterday that the campaign's first radio ads should be airing next week. 

The Sabrin campaign is running on a platform that features the following: "100% tax credit for donations to houses of worship and nonprofits; end trickle down welfarism; abolish corporate welfare; end undeclared wars; stop the Fed's manipulation of interest rates; stop domestic spying."

Professor Sabrin recently wrote:  "I have been meeting voters throughout the state collecting signature with volunteers.  The issue that is resonating with voters across the political spectrum, 100% tax credit for donations to nonprofits and houses of worship." 

Dr. Sabrin offered this brief history lesson on the subject, by Dr. Walter E. Williams, the John M. Olin distinguished professor of economics at George Mason University, and a nationally syndicated columnist:

"Before the massive growth of our welfare state, private charity was the sole option for an individual or family facing insurmountable financial difficulties or other challenges. How do we know that?  There is no history of Americans dying on the streets because they could not find food or basic medical assistance. Respecting the biblical commandment to honor thy father and mother, children took care of their elderly or infirm parents. Family members and the local church also helped those who had fallen on hard times."

Continue reading:

https://www.lewrockwell.com/2018/05/walter-e-williams/before-and-after-welfare-handouts/

The Sabrin campaign recently released this video...

https://www.facebook.com/Sabrin4Senate/videos/vb.244280012410056/1009846632520053/?type=2&theater

Murray Sabrin, Ph.D.

Libertarian Party US Senate nominee

www.SabrinforSenate.com