Friday, May 15, 2015

Jerry's Emission tax finds a home

Professor Kahn, our environmental expert on emission taxes. He predicts this passing out of the new taxes will reduce the flow of emissions. My claim is that UC Professors emit more than the average California driver.

Today, UC's President Janet Napolitano distributed a letter which features some very good news for the University of California.   Instate tuition will remain frozen at roughly $12,000 per year and Governor Brown will provide the UC with extra $.  This deal opens up the "win win" of providing the resources for continuing to have an excellent university while protecting the middle class from tuition increases.

As an economist always seeking "natural experiments", one part of the Governor's letter caught my eye.

Pension changes

·     The agreement's $436 million in one-time funding over three years to help UC pay down its pension liability recognizes the State's obligation to help support UC's pension plan.

·     In exchange for the pension funding, UC would adopt, upon approval by the Regents, a new pension tier by July 1, 2016.  The new tier, which would affect only new employees hired after it is implemented, would provide, at the employee's election, either:
-- A defined benefit plan with a pensionable salary up to the California Public Employees' Pension Reform Act of 2013 (PEPRA) cap (currently $117,020), plus a supplemental defined contribution plan for certain employees,

How will we know? We have to find data on the quantity of foul gas emitted by UC Professors.  My readers knew the scam very well, this is a repeat. Jerry gets away with it because most of us speak Spanish.

Como ya he mencionado, nuestro gobernador no elevar el impuesto sobre las emisiones, levantó un impuesto de ventas sobre la clase media para financiar un montón de gas que emite UC Profesores.

So, you tell me.  How did Jerry Brown figure out that funding UC Pensions reduces emissions?

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