Facing its own $1.3 billion shortfall, New York City is turning to the homeless for financial help. You heard that right. Capable homeless people who are using shelters will be charged rent, legal under a 1997 law but never put into effect. Deputy Mayor Gibbs explained "open-ended handouts, we know, don't work." While government should not be in the business of handouts, is taxing the homeless the best way to get NYC back on track?
As the $2 or $3 million raised will be insignificant compared to the Big Apple's bloated spending programs, the measure can help the homeless learn about personal fiscal responsibility. Microfinance, a system of small private loans provided to impoverished entrepreneurs, could help these individuals deal with the state law as well as providing a path out of poverty. So as requiring payments from qualified homeless people brings outrage, it may serve as an incentive for people to get back on their feet instead of relying on government payouts.
However, don't think NYC is off the hook. Taxing the homeless is yet another tool the state is left to using to pay for bloated government spending sprees, leaving massive debt to future generations. NTU has been on New York's case for high spending, higher taxes, and lack of fiscal commonsense. Their business model is unsustainable for New Yorkers. Check out our New York page and get involved with a taxpayers group near you!