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Tax Hikes!
9/02/10 |
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David Tuthill |
The ?tax hike lobby? is
down at City Hall. While I do not have the free time to spend at City Hall
myself, I will share my opinions with you on a tax hike.
My house was hit by an appraisal increase, while the McManison next door had
a value decrease of around $274,000 (a reduction that is 62% of my property
value). Most all the houses in my block had a decrease that put them at or
below their 2008 (pre-housing bubble) value -- except mine. Apparently, it
was the 2009 resale of 3 lots that were scrapped on or before 2007. One was
bankrupt builder. The lots are presently sporting for sale signs after
their 2009 sale! The land values are based on real estate speculators'
bets, and I get to pay for it in higher taxes due to the way the DCAD sets
land values. A rate increase is icing on the tax cake!
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You don?t raise taxes in a
recession. We have unemployment, bad housing (that will
not get better soon). In plain words, ?people are hurting
and afraid of loosing their jobs and houses and you don?t kick
people when they are down by a tax hike?. While a tax increase
hits homeowners, those who rent will get their rents increased
as the tax burden is passed on to them by their landlords. |
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A tax rate increase will divert
a household?s money from other spending that would benefit
Dallas businesses, and sales tax revenue. Purchases of durable
goods or other spending that benefit business will be postponed
or cancelled. Thereby, passing the recessionary effects on
through the local economy, possibly resulting in other business
failures as the economy struggles to regain footing |
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What, if any, guarantee is there
that the monies from a tax increase will go to libraries, rec
centers, pools, streets, etc.? Nothing! Politicians and
professional city administrators can?t live within the existing
revenue base in good times or in the current bad times. |
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A tax increase in bad economic
times will not go away in good economic times. It will become
the new revenue base. Remember that they had a tax increase
last year by taxing Atmos Energy?s pipe lines, which cost was
passed on to gas customers in Dallas in their gas bills. That
tax was SPECIFICALLY FOR rec centers (and libraries?). It was
Councilman Ron Natinsky?s brainchild, and the council jumped on. |
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The proposed Operating Budget is
$1.93 BILLION! The Capital Budget is an additional $822.2
MILLION! 2011 total for both Operating and Capital is
$2.75 BILLION! That is a big bunch of money! Those who want a
tax increase are saying ?it's not enough?. When is enough?
At what point can the citizens expect the city to live within
it?s means? Never, if you keep filling the leak in a pool with
water (tax money). The pool kind of stays filled, but the
added water?? |
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After past budget cuts and
infusions of tax monies, the city has historically never shown
any indication to have learned from the spending budget process
but has promptly gone off and squandered more money. There
seems to be a disconnect from the budget process and day to day
operations. One of my favorites happened in 2008 after a small
budget shortfall, the city spent $500,000 on a giant TV to
welcome visitors to city hall! Hiring consultants to help the
city convince itself that it knows what it is doing is also
troubling in that it indicates in power do not have a firm grasp
of what is going on. |
Every time the council has
addressed the budget cuts, their next words are about pursuing questionable
fluff projects (toll roads, suspension bridges, shopping malls (Red Bird),
decking Woodall Rogers, the opera and the arts district projects). It
seems libraries, rec centers, street repairs, pools etc are lowest on the
council's priorities.
I do not trust the city nor do I feel their neglect in managing the city
over the past several difficult years justifies a tax increase. They use
basic services as a hostage much like we hear about extremists in the Middle
East.
David W. Tuthill
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