Even assuming for a moment
that the school projects we're asked to finance are all
worthy of support, there's still the question of who will
pay, and how.
To some of us, it would
make sense that schools be paid for as they are being
used, just like homes with mortgages. That means
spreading the cost over 25 years, rather than only five.
Just as many of us have not been residents of Fayette
County for all of 25 years, many of us won't be here for
all of the next 25 years. Why then should we prepay for
the schools that will be used over the next 25 years?
It's fair, and smart, to spread out the cost over all the
users.
What we can raise through a
5-year sales tax we can even more easily raise through
25-year bonds. (The school board won't give you this
choice and doesn't want you to know about it.) A
competent expert analysis shows that the property taxes
needed to finance bonds in an amount equivalent to what
the sales tax would raise would cause about one-sixth the
pain to the pocketbook. In other words, for each $6 we'd
pay in sales tax we'd be out of pocket only $1 with a
property tax. Let's see how this happens.
The most sales tax you're
likely to pay is on cars. Here, a 1-percent sales tax
increase can easily cost you $250. Each time. Ouch! (So
much for "the penny tax.") You'll also pay it
on food and clothing. It so happens that businesses like
Home Depot, Wal-Mart, the banks, drugstores, grocery
stores, etc., don't need to buy cars, food or clothes, so
for all practical purposes they don't pay much sales tax.
(In fact they receive a small commission for collecting
sales tax.) But businesses do pay property tax, over 25
percent of it, in fact, so they would help pay the bonds.
The school board hopes to
raise $15 million in sales tax in 2000. Out of 100,000
residents, that's $150 per man, woman and child, or about
$450 per household. Business and visitors' purchases may
cut that $450 down to $400. If the board issues bonds for
the same amount as the sales tax would yield, the average
cost per household the first year is likely to be $125,
and as the property digest increases at the 8-percent
annual rate the school board is projecting, that cost
would decrease to $92 by year 5.
Deducting this amount on
income tax returns results, in most cases, in a
first-year net cost of $83 per family, and $61 in year 5.
That sure beats paying $400 per year! (Believe it or not,
bonds would have the average family pay $961 over 25
years, instead of $2000 over five years with the sales
tax. Of course, new families that move into the county in
years 6 to 25 would pay something toward the bonds, too,
which would only be fair.)
When your children come
home and tell you, "But Mom, all the other kids do
it!" what do you say? (Answer: "You're not like
the other kids, we love you more.") Well, a bunch of
other counties around us have, lemming-like, adopted an
extra sales tax. Are they smart? No. Are we in Fayette
County smarter? Our IQ test is coming up on Sept. 21.
"Just say no" is not just for our children, and
not just about drugs.
There is a positive aspect
to this. If the sales tax can be defeated again, the
school board may finally realize it needs to go to bonds,
the less painful alternative by far. The board would be
wise to break down its list of projects on the ballot
into separate items to enable our responsible citizens to
approve the most worthy projects, like the construction
of the new schools, while letting us line-item veto the
pork barrel projects.
Unfortunate as it is that
the school board hasn't yet seen the light, another NO
vote on the sales tax will help move it in the right
direction. The school board wants to hold pep rallies in
support of its plans. (Those kamikaze pilots in World War
II must have needed these pep rallies pretty bad, too.)
All I can say is that those
who would accept a genuine public debate on this, not
just a pep rally, will find me willing to go speak about
it. The education of our children is important for all of
us, but why should our financing alternatives be limited
to the most harebrained of them all, that tax du jour
known as SPLOST?
A NO vote on Sept. 21 is,
regretfully, still the responsible answer to the school
board's irresponsible parent-pandering plans.
Claude Y. Paquin
Fayette County
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Easy button Return it to long suffering taxpayers including those who have paid huge tabs to educate other people's kids…