Tax and Fee increases only hurt growth

Monday night’s (Sept 15) tax and fee increases were a disappointment to say the least. But there were many things that happened Monday night that have citizens asking even more questions than before the vote.

 

• Councilor Costello’s amendment asking the city to cut $5 million from the budget so we would not have had to increase the sales tax was not only the right thing to do, it was good clean common sense government. Four of the councilors supported the amendment, the rest and the mayor did not. I also want to note that Costello is an accountant and business owner and has an intelligent grasp on economics. Also it is prudent to point out that the four councilors and mayor who voted against the cuts have had their election campaigns funded by special interests who will benefit greatly by the sales tax increase and new roads.

 

• The legal question behind whether the developer platting fees were a tax was a valid one considering the person asking the question, Dr. Kermit Staggers holds a PHD in political science. During the council meeting Councilor Staggers read from SD Codified Law, which clearly stated this was a tax and not a fee (with the exception of one word, in which the city attorney used as his argument against Staggers). And if it was a tax, it needed to be voted on and approved by the people. The city attorney disagreed. Though the city attorney has mountains of law experience, being a former judge and all, he can certainly manipulate his opinion to fit a political agenda. Let’s remember who appointed him to judgeship – Bill Janklow, enough said.

 

• But last but not least, the use of the taxpayer money to lobby for a tax increase using city employees and funds to design and maintain a website is unconscionable. I believe that the citizens deserve a refund. May I suggest the mayor and the four councilors who voted for the increase refund us out of their paychecks?

 

I have heard that some citizens may be weighing their options to stop these increases from being implemented. They won’t take effect until January 1, 2009 so there is some time. What can be done? I’m not sure, but here are some ideas that have been floating around;

 

• Propose a citizen’s Initiative that says the city cannot raise sales tax without citizen’s vote and approval. Also, start buying as many products and services online from other states and countries that don’t charge a sales tax, essentially boycotting the sales tax.

 

• Challenge the fee/tax question and ask the attorney general to render an opinion on it.

 

• Sue the City of Sioux Falls for using taxpayer’s money to lobby for a tax increase.

 

Some may wonder why citizens would want to fight so hard to stop these increases. It’s simple really, now is not the time to raise taxes and fees. I think councilor Staggers said it best during Monday night’s meeting, we need to be a competitive government, that’s what will inspire growth. That means keeping fees and taxes low. It seems some bureaucrats in City Hall think the trickle down economics of Ronald Reagan and both Bushes is the way to go – yeah, that really worked out well for the middle class, didn’t it?