04 February 2009

Taxes and Spending: Will all levels of government ever learn?

The firestorm needs to begin. We need to look critically at priorities and spending by all branches of government.

Yesterday, the Board of Supervisors completed the process that led to higher salaries. Today, the Gazette online article titled Linn lawmakers to file supervisor recall bill reflect the mood of many Linn County taxpayers, who are angry over the salaries for the Board of Supervisors.

Spending at the local level needs to be looked at very carefully. Look at our economy and the impact that the Flood of 2008 has had on our local economic engine. Businesses have closed, relocated or are laying off.

Not much is moving very fast in Washington D.C., in regards to flood relief. The Federal monies have strict guidelines and many property owners and businesses are having trouble fitting within the requirements.

Much of the focus in Washington D.C. is not on disaster recovery, but economic stimulus package that is more about pork and less about stimulus for our small businesses and homeowners.

What is going on in Washington with the 111Th Congress?
In a speech at The Heritage Foundation last Thursday, Sen. Jim DeMint (R-SC) unveiled his “American Option” alternative to President Barack Obama’s Trillion Dollar Debt Plan. From DeMint’s speech: Link
We will see future tax increases from Washington D.C., if the Bush tax cuts sunset. Regardless of what your views of our 43Rd President of the United States are or were, a future known tax increase is not good stimulus for our current economic situation.
By the way, you may be interested in the new conservative blog here in the State of Iowa. The new blog has a recent announcement:
HawkeyeReview.com is pleased to introduce our newest contributing
editor: Christian Fong
The Contributing editor has two contributions you may find interesting:
In the State of Iowa, the discussion turns to a 20 percent or higher increase in the Iowa gas tax for roads and bridge infrastructure. The State of Iowa is looking at expanding taxes and revenue streams for local governments. However, what about comprehensive tax reform and the over reliance on property taxes in our State at all levels of government?
In the City of Cedar Rapids and Linn County, property taxes are expected to raise from any where from 6% to 10% for property owners. The Water rates in Cedar Rapids are expected to increase 14%. Now, we are being asked to approve a 1% LOST, local option sales tax, for the City and County. The Gazette article titled Cedar Rapids will vote March 3 on local-option sales tax and for Linn County coverage.
Where do are current tax dollars go? Have we looked at spending priorities at all levels of government, before raising tax revenues and continuing the path of record government spending?
Finally, the issue of accountability and transparency in our local government. Has the City of Cedar Rapids reduced anything within the budget and spending post-flood or post-economic decline?
Yes, there are priorities that need to be met. Flood mitigation is clearly a high priority. Sadly, that priority wasn't fully met leading up to the Flood of 2008. Other priorities were given higher priority and attention over the past 15 years, since the Flood of 1993.
How high can we take our tax base take in new taxes at this time? During this economic downturn, how smart is it to raise any new taxes?
The State is discussing $50 more for gas per year. The City already wants 14% more for water and other related services. The economy is dropping, which is reducing jobs and income for many throughout our community.
Back before the Change in government, our FY6 Budget was at $292 million as approved by our Commission form of government back on March 15, 2005.
Our Governor is taking an across the board reduction in the State of Iowa budget. What is the City Council and County Board of Supervisors looking to do? It appears the solution is raise taxes, fees and assessed values for starters.
We were at $292 million on March 15, 2005 for FY06 in the City of Cedar Rapids. Today, where are we headed? Spending and spending priorities are the problem. We are collecting quite a bit from our tax base and consumers of city utilities and services. On average, we pay $100 more per capita in property taxes than other cities.
peace

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