For true compassion & charity, vote NO on Boulder Ballot Issue 1A

Boulder County Ballot Issue 1A would increase property taxes for “county human services programs and for contracts with non-profit agencies maintaining a safety net for families and children in Boulder County.”

Support for measures convinces me that supporters of tax-funded and operated charities really do not care about the causes they supposedly support. Rather, supporting government charities are a way to shirk the responsibility to make sure your charitable donations is spent wisely. It’s more like phony compassion and making the appearance that you care. As I <a href="http://www.huffingtonpost.com/brian-t-schwartz/questioning-your-compassi_b_574030.html” target=”_blank”>wrote at the Huffington Post:

Why does being compassionate mean supporting government-run schools and health plans (or charitable causes)? This makes little sense if you view these programs as government-run charities. Would you agree to perpetually donate a portion of your monthly income to the same charity – regardless of its effectiveness? If the charity is doing a lousy job, wouldn’t you want the freedom to find a better one?

By supporting government-run charities like Medicaid and tax-funded schools, you relinquish this freedom. You could try to improve their performance through the political process. But this is grossly inefficient and ineffective compared to using on-line charity rating services to find a charity that deserves your donations.

Compulsory charity is also unfair:

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Vote No on Ballot Issue 1B, donate your own money

The Longmont Times-Call published the following article of mine in the print edition last Friday.

Voters should oppose Ballot Issue 1B, the “Worthy Cause” tax –no matter how worthy the causes are.  The sales tax for Boulder County non-profits is wrong and should end. It’s wrong for the taxpayers forced to “donate.” It’s wrong for a community that benefits from a marketplace of accountable and effective charities. And it’s wrong for the very people these organizations are supposed to help.

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Ballot Issue 1B: Vote “no” and donate $43

The Big Charity lobby for government-funded charities is at it again.  They want to use the political process as a fundraising mechanism.  This time it’s an article in the Boulder Daily Camera.  All but one of the authors and co-signers represent organizations that have received thousands of dollars in tax revenue from the “Worthy Cause” tax they support.

Again they use shallow logic: They regard some non-profits as advancing a good cause (which I do not dispute), therefore it’s OK for government to force everyone to fund it.  Something’s missing here.  Namely, respect, tolerance and property rights.  Who are these people to tell Boulder County Citizens what causes are worthy, and to make it a crime for them not to donate to it?

Supporters of the tax claim that the non-profits couldn’t raise the money without it.  But what if, instead of voting for 1B, the majority required to approve it donated their own money?

This year’s Boulder County Budget includes $3.5 million in the “Worthy Cause Fund.”   Assuming the same voter turnout as the 2004 election, 1B needs about 80,000 votes to pass.  That’s a $43 donation per “Yes” vote.  And it’s tax-deductible, so it’s more like $30.

Are we so two-faced in the voting booth?  Would a majority vote to force others to donate to charities that they wouldn’t support themselves?  Is that the Boulder County you want?

To donate to these charities on your own, I’ve made it easy.  Click here.  It lists the special interests who are funding the Ballot Issue 1B campaign.  As I’ve mentioned, they just happen to be the ones who have received the tax revenue.  So for them it’s an investment.  (See, “investment” = tax, just as politicians say.)  Anyway, the page contains a dozen links to donation pages for these organizations.

Former Boulder Mayor discusses my mandatory charity critique

Former Boulder mayor Bob Greenlee devoted a column in the Daily Camera to respond to my criticism of the so-called “Worthy Cause Tax.”  Some excerpts:

Brian Schwartz, a member of the Camera’s editorial advisory board, authored the commentary saying that asking voters to approve ballot issue 1B and renew the “Worthy Cause” sales tax this November would continue to be “immoral-regardless of how worthy the cause.” He made a number of astute observations including offering an opinion that simply having a “compulsory charity tax represents the tyranny of the majority” which is unfair to a number of local nonprofits that might not be able to receive one of the few “government subsidies” the tax would support.

There’s little doubt that many of the concerns Schwartz expressed are both heartfelt and valid. Imposing the will of the majority, however, is certainly not without precedent in Progressive Boulder …

It’s difficult to dispute many of the arguments Schwartz makes

Boulder Ballot Issue 1B: The Power of Compulsory Charity

THe October 10 post at the Foothills United Way blog states:

A penny helps a single mother get affordable child care, so she can work to support her family.

A penny helps an uninsured or under-insured family get access to the medical care they need.

A penny helps feed a family.

That penny is provided by Worthy Cause 1B – a .05 percent tax that equals one cent on each $20 purchase.

No.  That penny is provided by retailers, who get it from their customers.  The so-called “Worthy Cause 1B” is a law that makes it a crime for customers not to give this penny.  The so-called “Worthy Cause” tax provided government force, a threat, to all those who might choose to give their pennies to charitable organizations of their choosing, rather than to a charity that government officials prefer.

Boulder County Ballot Issue 1B is not about whether the causes are worthy.  It’s about using government to force your neighbors to donate to a cause that you deem as “worthy,” which means your neighbors have less money to donate to causes they think are worthy.  As I’ve written before, Ballot Issue 1B is intolerant, arrogant, and elitist.

This tax is sponsored by the so-called “Citizens for a Worthy Cause.”  These are not just ordinary citizens, but the very same non-profits that stand to benefit from the tax, at the expense of non-profits who refrain from using government to raise money.

Boulder Ballot Issue 1B: Follow the money to the “Worthy Causes”

Update to: “Worthy Cause Tax”: It’s not Your Penny to Give.

In a letter published in the Boulder Daily Camera, Rich Miller writes:

Citizens for a Worthy Cause sent out a glossy mailing this past week, encouraging voters to approve Boulder County 1B.  Issue 1B will continue an existing sales tax and allow county commissioners to distribute our tax dollars to the charities of their choice. … And who are these Citizens for a Worthy Cause? No individual citizens contributed, only non-profits who stand to benefit from 1B at our expense.

Rich Miller has made an excellent insight. (Ralph Shnelvar has also noticed.)

Ten of the fifteen organizations that donated to Citizens for a Worthy Cause have received revenue from this sales tax.  These ten organizations have donated almost $27,000 to extend the tax this year, and have received more than $1.8 million in sales tax revenues from previous years.  I flush out the details below. (As Rich also did in his on-line comments.)

In a previous article I made the case that Ballot Initiative 1B, which would extend the “Worthy Cause” sales tax, “is immoral — regardless of how worthy the causes are.”  As a compulsory charity, “it is intolerant to people’s values and unfair to charities that must earn our donations. It undermines both the responsibility of donors and the accountability of non-profits that receive forced donations.” Those who voted for the measure could have raised the money in this year’s Worthy Cause Fund had they each donated $50.  Instead, they force us all to donate.

Colorado’s Secretary of State office lists the contributors to Citizens for a Worthy Cause here.  Boulder County lists the recipients of the tax revenues here.   What follows are the dollar figures for each organization, and links to where you can make a voluntary donation.

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Ballot Issue 1B: “Worthy Cause” Tax, It’s Not Your Penny to Give

The Daily Camera published my article on the 2008 Boulder County Ballot Issue 1B today. (print version)

Update: The so-called “Citizens for a Worthy Cause” that support this are really the very organizations that receive the tax revenue.  See here.

Ballot Issue 1B: It’s not Your Penny to Give
by Brian T. Schwartz

Would you call the police on someone who didn’t donate to a charity that you consider to be a “worthy cause”?  If not, then you should oppose County Issue 1B in this November’s election, which would extend the so-called “Worthy Cause” sales tax.  This tax is immoral — regardless of how worthy the causes are. It is compulsory charity, or charity at gun-point. It is intolerant to people’s values and unfair to charities that must earn our donations. It undermines both the responsibility of donors and the accountability of non-profits that receive forced donations.

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Compulsory philanthropy stunts true charity

Published in the Daily Camera.  [Scan of print edition.]

How could anyone possibly vote against Referendum 1A, the “Worthy Cause Tax”? Referendum 1A would extend an existing 0.05-percent sales tax for Boulder County nonprofit human service agencies, and these charities’ undoubtedly promote worthy causes?

But if you are tolerant of other people’s values and causes they want to support, a “no” vote is the only option. This referendum is not about whether you, a single voter, want to give “a penny for a worthy cause.” It’s about whether you want to force, through power of law, your neighbors to support a particular set of charities instead of their own favorite charities.

While supporters of the referendum truly want to support what they consider worthy causes, their ends do not justify their means. In effect, the sales tax will make it a crime for people not to donate to certain charities. There is no benevolence or compassion in forcing people to support another’s worthy cause. Instead, it’s arrogant and intolerant.

Some claim that without government support, these nonprofits could not operate. But governments do not create wealth and give it to charities; rather, they are coercive middlemen between taxpayers and charities. This argument for compulsory charity insults both nonprofits and their benefactors, as it claims that people would not donate voluntarily. It implies that either those charities are not truly “worthy causes,” or that Boulder residents are too cold-hearted and uncaring to support them.

Boulder is known for its socially responsible citizens who seek to solve local and global problems by donating time and money to a variety of nonprofit organizations — each of them “a worthy cause” to those involved. But by seeking tax dollars, Referendum 1A supporters are implicitly saying that their causes are “more worthy” than others, and government should force people to support them.

According to GuideStar, a national database of nonprofit organizations, there are more than 300 human service charities within a 25-mile radius of Boulder. Yet, according to the referendum’s official Web site, “your penny,” and your neighbors’, will directly benefit only 11 politically connected nonprofits — some of which already receive state and federal tax dollars. And what of hundreds of other nonprofits not among the chosen few? “Nonprofit agencies not earmarked for funds already” can bid for it. That is, the government forcibly takes money from these charities and their donors, and who then have to beg for it back.

Tax-funded charities, the nonprofit equivalent of corporate welfare, have become special-interest lobbyists seeking government plunder. Instead of peacefully coexisting by seeking voluntary donations from diverse segments of the community, charities seek tax revenue at each other’s expense. It’s the law of the jungle: Kill or be killed. In the end, voluntary charities suffer, as documented by historian David Beito, author of “From Mutual Aid to the Welfare State.”

Most Boulder residents rightly oppose government policies such as tax breaks, special licenses, tariffs and subsidies that benefit specific companies. Known as “big business,” it gives politically connected companies an unfair advantage over their competitors. These “corporate fat cats” can be sluggish and inefficient, but still profitable, and drive some competitors out of business.

Referendum 1A is similar; it benefits “big charity.” Government “charities” such as welfare programs and schools have a guaranteed source of revenue: taxes. We have no legal choice but to fund these charities, regardless of how worthy they are compared to other nonprofits. Hence, despite the noblest intentions, government “big charities,” like government-created monopolies, have little incentive to be efficient or innovative.

Consider Philanthropic Research, Inc., itself a nonprofit organization. With its GuideStar database of nonprofits, it “envisions the evolution of an increasingly efficient nonprofit marketplace where donors seek out and compare charities, monitor their performances, and give with greater confidence; nonprofit organizations pursue more effective operating practices, embrace greater accountability, and enjoy lower fund-raising costs; and society benefits from a more efficient, generous and well-targeted allocation of resources to the nonprofit sector.”

Compulsory charity thwarts all of these goals while the bloated and unaccountable big charities thrive.

This is the tragedy of compulsory charity: It kills compassion and voluntary giving. People stop taking responsibility for improving their world by investing time or money in efficient and effective charities (or other ventures) that tackle problems most important to them. Instead, government “frees us” of this responsibility, and all but the most conscientious people assume that any social problem is not their problem — as “government is taking care of it” with other people’s money.

One might argue that an elitist cabal cannot simply impose this tax; a majority of voters must approve. Yet if it’s wrong for a minority to deny choice to the majority, how can it be ethical for a unified majority to deny choices to a minority of individuals who think differently? Democracy should not be an end in itself; that’s mob rule. Let it be a means to an end — political freedom, a prerequisite for a tolerant, civic-minded, benevolent community.

Your neighbor’s penny is not yours to donate. Choose your own worthy cause, and vote “no” on 1A.

Brian T. Schwartz is a doctoral candidate in electrical engineering at the University of Colorado, where he is also active with the Campus Libertarians.

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