3346
4
Mr. Paul Schultz recently submitted a letter to the editor where he discussed elements of taxation. Letter to the Editor: Let’s Talk Taxes | The Citizen While Mr. Schultz correctly notes that income taxes can be the largest tax an individual or family pay, I think however, he missed a key correlation.
Income and sales taxes are a result of action where more income or more purchases result in more taxes, while less income or purchases equal less taxes. In essence, the taxpayer has control and choice over how much tax they pay through their actions.
However, property taxes whether for schools or municipalities, are different. In this case, a government employee decides the value of the property has increased and therefore, more taxes are due, even if the taxpayer retains the property and has no additional cash generated by the property to pay more taxes.
This stands as a direct opposite to other unrealized gains from property like stock certificates. We have had shares of McDonalds from years ago they have increased in value since we purchased them. That gain in value has not been subject to (income) tax because there is no transaction to trigger the gain such as a sale.
Now Mr. Schultz has reassured us that any tax benefit from tax reductions proposed by some candidates would be small, possibly not much more than the price of a Big Mac per month. Not only am I a shareholder of McDonalds, but a customer as well.
It’s important to note that the former McDonalds $1 Value menu has been increased to $3 in just the past few years. While I can afford a Big Mac, the price has moved my order to the double cheeseburger (no cheese). I can get a second one for $1, thus making a satisfying lunch for less. While I do splurge one in a while, the decision to save cost is my choice.
Similarly, I saw a study online recently that the median family has five weeks of savings in reserve. This says that half of the families have more than five weeks of savings with the other half with less. Accepting this premise for purposes of discussion, it is interesting to see how this relates to the current discussions on governmental reserves.
Like Mr. Schultz’s view that taxes to provide governmental services are reasonable, some argue for large governmental reserves, even if the median taxpayer does not have the same level of savings.
In the local example, Fayette County Schools have budgeted a 10.6% or 5.5 week reserve. Coweta County Schools have budgeted a 16.3% reserve, or approximately 8.4 weeks after the board lowered the millage rate. Peachtree City has a 60% or approximately 30 week reserve.
This begs the question, is it right that the governments keep reserves that are higher to much higher than the average taxpayer’s reserve? Some will argue that a “healthy reserve” insulates the continuation of “full” government spending/services in case of disruption. But in that case, is that the priority versus the taxpayer? Afterall, does the government exist to serve the taxpayer, or does the taxpayer exist to serve the government?
Now some will argue that my questions are a bit over the top and it is meant to be. I have found that none of us know what is going behind our neighbor’s door and in their life. To some families, another $5-10 a month is a little more breathing room. Just recently Coweta School Board member Frank Farmer, begrudged taxpayers a savings of $20 a year due to a millage roll back.
It seems reasonable, to see what people pay for cell phones, Starbuck’s, cocktails or any other purchase and wonder if that money could be used for different things that may benefit the public, but doesn’t the individual have a right to spend their money in a way they see fit to do?
But even if me or my neighbor “can afford it”. Shouldn’t that be that person’s choice? After all, nothing would stop Mr. Schultz or anyone else from sending more money to Peachtree City or any other governmental authority.
As I reflect on these points, I think this is a great question for voters in this year’s municipal elections as well as next year’s state elections to ask candidates and see who most aligns with your view of the questions above.
Leave a Comment
You must be logged in to post a comment.