Posted on 07/16/2007 3:15:06 AM PDT by John Galt 72
The Village Mentality Breeds Fiscal Idiots
By Matt Carrothers
July 16, 2007
Proponents of high taxes and intrusive government suffered a crushing defeat last week in Iowa. Eighty-five percent of voters in three Iowa counties voted against a ballot initiative to implement a 1 percent local-option sales tax increase. The saga of this proposed tax increase, dubbed the “Destiny Tax” by supporters, demonstrates the sheer ignorance ingrained in many elected officials of the factors necessary to create economic growth.
Supporters of the Destiny Tax in the three Iowa counties that include the Des Moines metro area claimed that the estimated $750 million in revenues generated from the new tax would help lower property tax rates, fill local government coffers and allow local governments to build recreational and cultural amenities such as biking and walking trails. All that, they promised, would attract new businesses, grow central Iowa’s economy and increase the quality of life for all concerned. Oh, and according to one of many pro-tax fliers the supporters mailed, the new tax would also “provide more opportunities for our children.” Our glorious children. You know – from the village.
The various fliers mailed to voters by the “Yes to Destiny!” pro-tax organization would have made P.T. Barnum blush. The fliers promised . . . trails! 300 miles of connected trails! The largest trail loops in North America! Arts, Culture and Historic Preservation! Quality of Life! And did we mention, for those damned country-fried rubes of you who also get to vote – Lower Property Taxes!
No voter could possibly miss the alleged lower property taxes benefit. It was plastered all over every flier. One flier cavalierly exclaimed, “A ‘YES’ vote will mandate property tax relief for every community voting ‘YES’ to Destiny. The naysayers trying to stop Destiny want to raise your property taxes.”
That same flier conveniently failed to mention the fact that a “yes” vote was to implement a local-option sales tax. Opponents of the Destiny Tax, not exactly the barnyard boobs the tax supporters bargained for, were outraged. George Davey, a leader of the group opposed to the new sales tax, said, “The flier is clearly false and misleading advertising and the people that received it deserve an apology.”
The Des Moines Register reported that “Yes to Destiny!” raised $770,000 from Des Moines-area businesses, cultural organizations and individuals to promote passage of the new tax. Opponents of the tax raised just over $3,500.
Fortunately, the village idiots who believe that governments can lower property taxes not by cutting them, but by raising the sales tax, were soundly defeated at the ballot box. After the votes were tallied, supporters of the tax clearly displayed their economic bona fides and grasp of the electorate. Des Moines Councilman Brian Meyer stated, “People just do not trust government for spending the money wisely.” The money, indeed.
Polk County Supervisor Angela Connolly added, “I still think, fundamentally, people don’t want to pay any more taxes.” Or, I’ll reckon, your salary come the next election.
Contrary to “Yes to Destiny!” thinking, college graduates and young families do not choose to live in a city or state based on its proliferation of trails and cultural attractions. The tax burden imposed on residents of a city or state plays a significant role in the decision, and is a prime factor as to why Iowa lags behind the rest of the nation in measures conducive to economic growth.
A recent Tax Foundation study finds, in fact, that Iowa ranks 18th in state and local tax burden, and 16th in local per capita property taxes collections. Iowa ranks 28th in state and local per capita spending.
According to the Bureau of Economic Statistics, Iowa’s economy is slipping at a dangerous pace. The Tall Corn State’s economy grew at 2.6 percent in 2006, ranking it 32nd in the nation. That is down from 5.7 percent growth in 2004 and 3 percent growth in 2005. Obviously, Iowa has more pressing issues than a purported dearth of trails.
New U.S. Census figures show that the Des Moines metro area ranked 69th nationally in population growth from 2000 to 2006. The area added just 52,800 new residents during that time. The Atlanta metro area added 890,000 residents from 2000 to 2006, the largest gain in the country. A contrast between Iowa and Georgia on the issues of tax burden and economic growth shows why.
Georgia, with more than three times as many residents as Iowa, ranks 32nd in state and local tax burden, and 29th in local per capita property tax collections. Georgia ranks 45th in state and local per capita spending. The Peach State’s economy, 20th in the country, grew at a 3.4 percent rate in 2006, up from 3.3 percent growth in 2005.
The formula for economic and job growth is quite simple, yet it maddeningly eludes most lawmakers. Cut taxes, cut spending and families and businesses will beat a path to your town. Or, villages can shake down families to pay for a serpentine mess of trails to nowhere.
There is a name for villages whose leaders’ economic policies run roughshod over their citizens’ economic freedom. They’re called ghost towns.
© 2007 North Star Writers Group. May not be republished without permission.
Boy, that’s the damn truth! I remember when sales taxes were 3%, state income tax rates were exactly what they are now (but incomes were lower), and property taxes have gone through the roof.
Gee, sounds just like Sarasota (and much of the rest of south) Florida; and, with appointed city and county managers, corrupt officials are not burdened by the electoral process.
I fought one of those across my rural property in PA, along with a few hundred other affected property owners. The county gov’t wanted not just to make a “benefit” for exercise enthusiasts but, as it later came out, to run water and sewer lines into undeveloped areas for developers to make money.
Luckily for us, the old RR bed in dispute had already been legally abandoned the year before, so the county was too late. They thought we’d be dumb enough to not discover this. They didn’t want to pay for the re-taking, the maintenance or the patrolling, so it eventually died.
Someone has to pay for the Mexicans' ninos (Question - who is the largest employer in Gwinnett county - answer Gwinnett county schools). They sure as hell aren't going to.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
A universal constant wherever you have government, you have corruption. It's just so much easier to spend money you've seized than money you've earned.
I’d be willing to bet that the schools are the biggest employer in at least 150 of the 159 counties of Georgia.
“I either want less corruption in government, or the opportunity to participate fully in it....”
Could be true - I only know for sure about gwinnett
Exactly.
When people say that government should be run more like a business, they mean government should focus on efficiency, reducing headcount, eliminating unnecessary functions, and cutting costs wherever possible.
Instead, the message government bureaucrats hear is that they should strive to grow as large as possible and increase their “customer” base.
I think the only way to solve this problem is to appeal to their greed. Make their bonuses and raises based on how much they cut costs compared to the previous year. If they can cut costs — including headcount costs — by 10% compared to the previous year, then they get a 10% raise. If costs INCREASE 10% compared to the previous year, they get a 10% pay CUT.
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