This is ugly. New tax plans make for businesses to pay higher taxes, while the lower property taxes are supposed to offset that tax increase. But if I was a business owner, in facing this tax, I'd increase my prices just a bit to cover my bills. This would spread through all businesses, and eventually to customers. It would hopefully hit more people than just property owners, and so spread the tax burden, but it's hidden. I can't point to a tax bill and say "This much is from tax, and this much is from the cost of doing business.
What would happen if we implemented something like the FairTax on a statewide basis? Everyone pays, everyone gets a refund. Of course, people would fight over distribution, especially the formulas to figure out how much goes to school districts, counties, and cities. What do you think would happen if this actually did make it through the Legislature and People?
Friday, May 2, 2008
Business taxes
Saturday, March 15, 2008
Hang on to Your Wallets, the City Council is in Session!
The Council recently approved its most recent Capital Improvement Plan. The city intends to spend $196.4 million dollars (or about $910 for every resident the city had in 2000) on various improvements. A lot of them are worthy. Unfortunately, I'm not sure we can afford them.
Historically, Garland hasn't drawn high-value properties. We don't have the Telecom Corridor that Richardson has, or the Mesquite Rodeo like our neighbor to the south. Because of this, homeowners bear more of a burden of the city's taxation than in other cities.
Our tax rate is, according to the DMN, one of the region's highest at 70.36 cents per $100 value. Almost 44% of that is directed towards debt service. I don't know about you, but if 44% of my income was directed towards long-term debt, I'd start to worry about my financial situation. As a city, we seem to be addicted to debt, and that's not a good thing. In fact, with the recent housing bubble, our ratio of debt to value still went up, especially with the 2004 bond election.
How can our city go on a financial diet? Leave your ideas in the comments.
