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Saturday, July 26th 2008

10:56 PM

Tax Incease under consideration

Well once again we have arrived at the silly season, defined by budget time in an election season.   Both the city and county have stated they have in excess of eight million dollars worth requirements above available funding.  Both have indicated a tax increase is may be proposed.  The state however has taken a different option: one of no tax increase, no pay raises and a voluntary buy out of over 2000 employees.

 

Each year normal economic activity causes the revenue flowing into government coffers to increase.  The basic principle requires keeping the growth of the cost of government with in that available rate of revenue growth.

 

In good times the rate of revenue growth is high and as the economy slows so does the rate of revenue growth.  As the state is doing, we at all levels of government need to slow the growth of government to the economic lower rate supported by the revenue growth rate.  We must some times actually reduce the cost of some of the activities that we approved in good times, but that are no longer affordable during the economic slow down.

 

The housing market is flattening; gas is near or above four dollars per gallon, food prices are up over forty percent.  In fact the cost of everything that is consumed by the families of our community has sky rocketed.  Some say that raising the tax on the typical home another one hundred dollars per year is not so much and for some of us that might be so, but for other less fortunate than ourselves it may mean food on the table or transportation to work.  To raise taxes now is the equivalent of kicking a person while they are down and shame on any who would do so.  

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