Why eMeg's Capital Gains Pledge Would Steamroll Our Education System

Last week, Jerry held a press conference at LA's scenic Dorris Place School to explain why eMeg's pledge to implement a lavish tax cut for her wealthy peers would have a devastating impact on California's education system.

On Tuesday, eMeg responded by claiming her capital gains tax would not affect school funding, namely because she promises to trim an "overfed state education bureaucracy." After which she offered no specifics, as usual. So let's look at some basic math. California's most recent budget totaled $86,551,495,000. Of that pool, $36,079,143,000 went to K-12 education. Divide the latter by the former, and it shows 41.685% of the current budget goes to the classroom. The California Department of Finance estimates that revenues from capital gains taxes - 82% of which comes from the top 1% of earners in the state - will amount to $5.3 billion in fiscal year 2010-2011. Take the 41.685% of the budget that goes to education and apply it to the $5.3 billion in revenues from capital gains. That roughly amounts to a $2.2 billion hole in the education budget. The average teacher in California earns a salary of $66,995 annually. Dividing $2.2 billion by that figure equals 32,997 teachers whose jobs would be in jeopardy should eMeg eliminate the capital gains tax, as she adamantly swears she will do if elected. Candidates can lie, as our opponent has proven repeatedly during this campaign season. But numbers don't.

 

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