Nederland (CO) needs some tax rethinking
Here in Nederland, Colorado, some residents have just started up a new newspaper, "The Ned Gazette". In the first edition, I read about the "Downtown Development Authority"'s problems with "not enough sales tax revenue" as well as how Nederland just increased its property tax rates. Following is the letter I wrote to the newspaper. I hope they print it.
As a recent transplant to the 80466 Zip Code, reading about the Nederland DDA plan reminds me of a dilemma I have every time I want to shop for something that could be purchased either in Ned or in Boulder. Ned is closer to my home, but I go into Boulder every day, so it’s generally a coin-toss for me.
My inclination would be to support local business, even if the price is very slightly higher than it would be in Boulder, but I am so turned off by the knowledge that government is taking an even bigger percentage in Nederland than in the People’s Republic just a few miles away that I frequently just wait until the next day and shop in Boulder.
I suppose it’s the libertarian in me, but also as someone who has studied economics for many years I have a very hard time supporting the mistaken thinking behind constantly raising taxes trying to raise government income.
I understand that the Boulder and Nederland areas are not particularly open-minded toward the benefits of capitalism, free markets, and limited government. But whether or not you voted for George W. Bush (I didn’t, for the record), you’d have to have an intentionally closed mind not to see the obvious success of tax cuts on all scales, from cities to states to countries, in increasing economic activity and total government revenue.
So when I read about Nederland raising its property taxes and complaining about not getting enough sales tax revenue, I’m afraid that people with good intentions but no real understanding of economics will make bad decisions, believing that raising tax rates will raise tax revenue when history consistently demonstrates otherwise. Nederland should proudly lower its taxes and shout to the world that it’s done so, making it more popular as both a place to live and a place to shop. Put a big sign on every road into town: “Nederland: Our taxes are lower than yours” or “Nederland: The lowest sales tax in Boulder County”, and watch the tax revenue roll in.
| Print article | This entry was posted by Rossputin on 09/06/07 at 02:30:28 am . Follow any responses to this post through RSS 2.0. |
Yours truly
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09/08/07 @ 10:54:24 pm
I sit on my town's Citizens Finance Advisory Commission, which advises city council on finance issues like new taxes. Perhaps a window into the process will sicken you a fraction as much as it does me.
Our local Chamber of Commerce president recently told CFAC the alarming news that our lodging tax was less than that of nearby towns. Thankfully, she had ideas to correct this 'problem' by raising our own taxes. It was stated that this tax isn't paid by residents, that visitors will come here anyway, & that they'll spend the same money the same way despite the tax. (*That contradicts two centuries of economics as well as common sense, but why sacrifice a tax opportunity on the alter of reality?) Finally, she graciously offered the Chamber's help to administer & redistribute any new revenues.
Discussion quickly turned to how to spend the money, as no one seemed to entertain the notion of letting people keep & spend their own money. Despite my vociferous objections, the vote passed to query civic groups to see if anyone could figure out how to spend the newfound money.
Surprise, surprise! The library board, the historic preservation society, and the downtown development group, among others, felt they were underfunded and offered to help spend any money collected. One or more of these groups will probably champion the tax campaign in the public arena. Chamber wants only to provide behind-the-scenes support, thus covering their tracks. Thankfully, there is probably not enough time to put it on this year's ballot, but it appears likely to be tried.
The reverse order in which this happened is what's scary, because it subverts the intent of a true citizen's initiative. Government exists to secure & maintain individual rights, not to determine some vague 'societal goals' and then fund them on the backs of individuals. When the established powers in a community decide a tax should be levied simply because it can be, then go searching for a citizen's group to hide behind, we've slid past "the slippery slope" and already reside in the muck.