Modest Proposal: Putting the Responsibility for City Pension Funding Where It Belongs.
Posted By Cliff Tuttle | December 16, 2009
Posted by Cliff Tuttle (c) 2009
If you need to catch up on the controversy regarding the City’s proposed tuition tax, the New York Times provided a good summary this morning.
Of course, the chief irony is that the City is seeking to tax college students, most of whom have not yet joined the labor force, to pay deficits in an underfunded pension system for the benefit of those leaving the labor force.
The pension system was underfunded because prior generations of City politicians failed to levy enough taxes to pay for pension fund contributions at the time they were being earned by City employees. Thus, the older generation of taxpayers was not assessed enough when they received the benefit of services provided by City employees.
The solution is obvious. Tax pensions.
Plan B: postpone the retirement age to the point where accounts balance.
CLT
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