Death, Taxes and the November 5th S.P.L.O.S.T. vote

After not so much fanfare we are beginning to see some news on the S.P.L.O.S.T. that will appear on the November 5th ballot.

For the high information voters that is Special Purpose Local Option Sales Tax.

What is it?

1.       It is a tax.

2.       It is supposed to have a targeted objective. (Special Purpose)

• Transportation improvement like an intersection or bridge
• Fire Station
• Courthouse
• Park
• Library
• Police Station

3.       It is a Local Option voters decide whether to impose it on themselves.

• If approved you pay 1% tax more for items subject to sales tax.
• If defeated you pay 1% less for items subject to sales tax.

4.      It is a Sales Tax.

A.      It is paid on consumption, taxable purchases.

B.      Sales Tax is a broader based tax.

C.      Sales Tax is regressive, the lower your income the more impact it has on your buying power.

• 1.       If you have taxable spending of $30,000 in a year, 1% is $300.
• 2.       If your income is $40,000, that $300 in tax represents .75% of total Income.
• 3.       If your income is $60,000, that $300 in tax represents .50% of total income.
• 4.       If your income is $100,000 that $300 in tax represents .30% of total income.
• 5.       Simply stated, the higher the income the greater your ability to consume.

D.      Consumption affords enjoyment.

• 1. You buy designer jeans.
• 2. You buy an iPhone.
• 3. You go to the Theatre.
• 4. You go to the football game.

Now you know what you are considering on the November 5th ballot… if you vote.

Unfortunately, our County leaders, some that are my friends who I respect, have decided not to advocate for the S.P.L.O.S.T. Maybe this is because, in the current environment, taxes are out of vogue with the voters. Most high information citizens are rethinking the role of government. What are the “essential” services we want from our government? That is a worthy discussion and everyone agrees we need good government.

Party affiliation, be it, Republican, Independent, Democrat, Libertarian, Socialist does not change the basic fact that we need good government. Regardless of Party affiliation, we cannot dismiss that we are all in this together, it is after all our community, and the decisions our local leaders make at the County and City level affect our quality of life in a significant way, as well as, our personal pocketbook.

So when you ask the voters for a Sales Tax, it is incumbent upon our Leaders to advocate for it.

Why you ask, because the S.P.L.O.S.T is an important tool for providing Capital improvements for our community. Advocating is what leaders do, but with the understanding that ultimately it is the voters who must decide. So when you do not specify in clear terms the projects the tax will fund, you have failed to lead, you have left ambiguity, where precision is expected. Special Option requires specificity.

When you ask for a Sales Tax, then do not tell the voters how you will fund the overhead, the operating expenses that come with any Capital improvement, then you undermine the trust of the people who elect you to represent them. Failure to communicate does not instill trust in Government. It matters little to have citizen review boards, which while well intentioned, do not have the final authority.

It is not enough to say the Sales Tax will raise $498 million in revenues and will be split 78.9 % for the County and 21.1% for the municipalities. If we need Capital projects then make the case for them. The unintended consequence of not informing and promoting public debate, is that it further feeds the doubts of the public. Considering the County’s problems of the recent past, it is important that we move on towards restoring trust. The lack of information and communication on this ballot initiative do not help. I hope we learn more in the remaining four weeks.