How About A Deferred

Education Tax?

To the Editor:

I read with interest your recent article concerning the finance board’s compassionate desire to help elderly homeowners.  The finance board proposes that the elderly be allowed to defer their real estate taxes until the time of their death.  When they die the deferred real estate tax plus three percent interest (which Mr Spragg indicates is around the town’s borrowing rate) for each year it was deferred becomes due and payable.  With regard to any surviving children, Mr Mike Portnoy allegedly said, “but forget the kids — they can fend for themselves.”

It is important to note that over half of one’s real estate taxes goes to support our students.  And well it might.  Education is very important.  It is well worth paying for.  Therefore, the finance board, led by Mr Portnoy due to his respect for the kid’s abilities to fend for themselves, might propose a deferred education tax to be paid by students who obtain their education in the Newtown school system. The deferred education tax would be based only on the town’s share of the educational budget paid for by the real estate tax.  All federal, state, etc. sources of support would be deducted.  Each year the town’s share, divided by the number of students in the system, would be the individual student’s deferred education tax.  When the student leaves the school system, whether by transfer, dropping out, or, hopefully, graduation, the former student would receive a bill for the year(s) attended.  The bill would become due and payable, along with a modest three percent interest for each year it was deferred, when the former student begins working full-time.  Certain other penalties would ensue if the former student did not pay the deferred education tax as Mr Spragg indicated would occur in the case of the elderly’s deferred tax plan.  Also, Mr Spragg might agree that initially all the educational tax revenue would continue to come from the usual taxpayers, but ultimately there probably would be a saturation point where former students paying their deferred education tax would offset the educational expenses for students coming into the system. 

The deferred education tax plan would eliminate the need for the finance board to create any other deferred tax plans for the usual Newtown taxpayers.  Ultimately it would stimulate more interest in how the funds are spent because those for whom it is spent are also those who will be responsible for repaying it.  The deferred education tax would relieve the usual Newtown taxpayers of a significant amount of the town tax burden while giving their grown children reason to be proud of their ability to fend for themselves.

James A. Bergeron

Brushy Hill Road, Newtown                              February 16, 2004