Bank taxes and education

It would seem that a site about education would not be a place for any type of specific political ideas. Yet this is a site trying to explore, though not as much recently, ideas and uses of technology, and some have to be funded along the way. My school district, and many others nationwide, have experienced teacher furloughs where there are days that teachers are just not paid and don’t come in. Often these days are teacher workdays and the students are not affected. Still, I have seen my salary decrease by around 3.5%, relatively a reverse cost of living adjustment. Along with this is the oft cited mantra "Well at least I have a job".

Now let’s compare this to the idea of the proposed bank tax. There is opposition to this, as to any tax, although there is some traction recently concerning some level of taxation. The issue many Americans have with some of these financial institutions is the excessive bonuses that are doled out to some members...even as their companies were hammered in the recent recession. Their mantra was "We need the bonuses to keep the best talent".

Let’s use that idea for education. If money keeps the best talent and public education is getting hit nationally, we are losing the talent we already have. Yet the loss of this talent is much like smoking, the effects take time to show, and therefore is ignored. Whereas in banking, one can publically see the results in three months. Education creates the talent that is later used. Without the creation and development of talent, the pool of able people starts to shrink.

So where are we? Education is losing funding and cannot keep the best talent. Banks, ignoring the precept of moral hazard, continue ways that eliminated some banks and caused others to borrow tens of billions just to survive. Their money did not buy the best talent, evidenced by the bad business decisions that led to the proposal to tax them. If the banks could not do it, maybe education should try.

The proposal will collect around $110 billion over ten years. The United States has around 7 million elementary and secondary teachers. Giving this chunk over from banks to teachers would increase the salary over $1500 per year for every full time teacher in America for 10 years. Scaling those with the highest and lowest salaries could then allow for some districts to have yearly increases of $3000. Scaling it more to new teachers (1-5 years) to get them into the system and stay there could make starting salaries, some starting salaries in the most needed districts could top $5000.

With some poor districts having starting salaries under 30K this would mean an immediate 17%-20% incentive. Obviously the plan could be altered where you have to stay in for two years to start earning the bonus to make sure there is teacher follow through, but those are the details.