Letter: Business interests challenge funding

Self-serving business interests are spending millions trying to block desperately needed funding for our public schools by airing TV ads promoting falsehoods that are easily debunked with basic economic facts.

>> “Raising taxes on high-end investment properties will increase the cost of living for everyone.” False. Higher taxes on investment properties leads to lower housing costs by making speculation less profitable. And it is speculation — not taxes — that has been pushing housing costs through the roof.

>> “Landlords will automatically pass tax increases on to renters.” False. That’s not how markets work. If landlords thought the market could bear a rental price increase, they would raise rents right now even without a tax increase. Landlords will just have to absorb the tax increase as a decrease in their cash flow. That’s why rich investors are so strongly opposed to increasing school funding. Vote “yes” on Nov. 6 for our keiki.

Patrick De Costa

Waipahu

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