We've previously discussed the lunacy of exempting accumulated wealth from taxation. But that is a philosophical question best debated elsewhere.
Today's post will try to lay out facts, not philosophy. The squealing pigs who have been evading their fair share of the tax burden for the last several years have been empowered by the media (who are always looking for a new 'story') as their property taxes were, at last, equalized with yours and mine. That some people saw their property taxes rise has masked the facts.
If you've been living in the same state and particularly in New Albany as long as I have, you certainly can't say that the level of services we receive from our local government is luxurious or exorbitant. There are no bells and whistles. Hell, there are hardly basic services being delivered. Our police force is woefully understaffed, making each of us prey for opportunistic crime. Our property values are diminished by unpaved and flooded streets, eroding infrastructure, and drug dealers who have little fear of being caught. Why, some don't even fear to invite the police into their stash rooms!
So what's the real situation with Hoosier State tax burdens. Well, according to the Tax Foundation, things aren't nearly so bad as the pigs would have you believe.
In 2007, Indiana ranked 30th in the nation in the level of its tax burden. That includes all taxes - federal, state, and local. One can assume that the federal tax burden is pretty evenly spread across the nation - Hoosiers don't have a magic elixir that enables us to have lower taxes than the residents of other states.
30th in the nation. How then does anyone fall for the lie that we are overtaxed locally? The fact is we aren't.
But how about the trend? On average, over the past ten years, Indiana has ranked 30th. On average, over the past five years, Indiana has ranked 30th. Sure doesn't look like a trend to me.
You may ask, "Who is the Tax Foundation?" They're hardly "tax and spend" liberals. Created in 1937 as a reaction to FDR's New Deal, they deal solely with the facts as they find them, with a bias toward lowering government spending. One of their principles is tax neutrality.
Local government taxation is already limited, and severely. Even if we were able to increase the tax base, existing law prohibits local government budgets from growing more than 4.3% a year. Imposing additional caps is not the answer. In fact, government investment in economic development, adequate policing, codes enforcement, and infrastructure will increase our property values while lowering our tax burden as a percentage of our accumulated wealth. Government spending can't grow, but the tax base can.
The loons have it bass ackwards. Investment is what will lower taxes. The ideologues who want to cap property taxes are only trying to shift the burden onto businesses and consumers. The landlords behind all this are asking the legislature to give them a 33.3% tax abatement, preferring their businesses over others. An added penny on the sales tax will put Indiana retailers at a further disadvantage competitively and will drive businesses with options to neighboring states or put them out of business altogether.
There is nothing neutral about the current property tax "reform." It is dangerous and we'll all live to regret being gulled by the volume of nonsense being bandied about in this election year. Call or write your legislators and let them know how you feel about it. It's not too late.
In New Albany, these are your representatives:
Rep. Bill Cochran or Sen. Connie Sipes
200 W. Washington St.
Indianapolis, IN 46204
Call Bill toll-free at (800) 382-9842. His e-mail address is h72@in.gov.
Call Connie toll-free at (800) 382-9467. Her e-mail address is s46@in.gov.
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