Where does common sense lie?

April 30, 2008

Author’s note: This piece was published today in the Reidsville Review.

“Some writers have so confounded society with government, as to leave little or no distinction between them; whereas they are not only different, but have different origins.”

So begins one of the greatest works in American political history, Thomas Paine’s “Common Sense”. A division between government and society has served as a cornerstone of American prosperity since its inception.

But if one looks around Rockingham County today, increasingly, government and society have become one.

Can you name the largest employer in Rockingham County? How about the second largest? If I told you they both began with the words “Rockingham County” and are tax payer funded would you be surprised?

I have been cautioned by some to keep this argument simple. But it is not a simple matter.

Taxes and spending are confusing to many, and often common sense is thrown out the window when politicians and special interests are intent on getting their way.

In the debate over increasing the sales tax in Rockingham County by more than 3 percent, proponents of the tax increase have laid it all on the table. We have been told: the elderly won’t have to pay it because food and prescriptions are exempted, it’s for the children, and my personal favorite, that the higher tax will mostly impact “people who can afford to buy expensive things.”

But where does common sense really lie?

We all want the best for the children. Great school buildings are important, and great education is even more important (they too are not the same). People on both sides of the sales tax issue support quality education, and also want nice buildings. But the fact is that our county leaders have options to finance the school’s construction needs. They just fail to exercise those options, and continue to resort to raising taxes rather than prioritizing government spending.

Numbers Don’t Lie

The sales tax referendum represents a 3.7 percent tax increase over the current rate. The new 7 percent sales tax will be 40 percent higher than Virginia’s 5 percent tax.

The local option to increase sales tax becomes available as counties also see an increase in their available revenue from the state due to the “Medicaid swap”, as it is being called. County Finance Officer Mike Apple has calculated the net increase to Rockingham County at approximately $1.4 million annually over the next five years.

The county budget is currently $91 million, of which a significant portion is clearly discretionary spending. Management has identified areas where our county spends more discretionary money than some wealthier or larger counties do. Are there really “no choices other than to raise taxes”?

Rockingham County already loses 35 percent of its sales tax revenue because of limited local economic activity. In other words, people are shopping elsewhere. Higher taxes will not help that problem. If our economic activity met just the state average for a county our size we would see an additional $5 million in revenue to the county each year.

Property taxes will continue to rise regardless whether this new sales tax passes. Current projections from county staff show the property tax rate rising steadily in the next five years, in addition to next year’s revaluation, which is projected also to be a significant effective tax increase.

County staff projects the current $91 million budget to grow by more than 13 percent over the next five years to $103 million.

Because governments will spend as much money as is made available to them, in the long run the sales tax will only increase total county spending, not create a lower property tax rate in Rockingham County.

I have these documents and would be more than happy to share them with anyone on request.

A Renewal of Common Sense

Again, we all want great schools and the best for the future. There are those who believe limited government allows individuals to keep more of their money, and spending it with local businesses would also help our local economy. Higher sales taxes will make it even more difficult to attract good retail businesses to our county. People will continue to choose to shop elsewhere. Higher taxes are one more factor in businesses (taxpayers) locating elsewhere too.

As Thomas Paine did so eloquently many years ago, I call on your “Common Sense” in voting NO to higher sales taxes on May 6. As citizens of this county, we should demand effective leadership, not higher taxes, from our elected officials.

Jeffrey Sykes

Citizens for a Better Economy in Rockingham County


Rockingham County Commissioners need to hear from you

March 27, 2008
Rockingham County Commissioners postponed Monday night their approval of a pamphlet aimed at promoting the May 6 sales tax increase. Because the staff’s recommended pamphlet went too far in advocating for the sales tax, County Manager Tom Robinson said they would “take some of it out” and resubmit the pamphlet at the next board meeting at 6:30 pm on Monday March 31.

Plesase take action!

Call or email Amelia Dallas (623. 8481), Harold Bass (939. 2841) and Bobby Stanley (573. 9261) and let them know you oppose tax payer money being spent on a pamphlet promoting the May 6 sales tax increase. To date, the county has failed to provide an estimate on how much staff time and public money will be spent on producing and mailing this pamphlet at your expense.

Help us stop this waste of tax dollars!

Come to the meeting at 6:30 p.m. on March 31 at the Governmental Center in Wentworth. Speak to them in person and express your opposition to the sales tax hike.

Sincerely,
Jeffrey Sykes
Overtaxed Rockingham County Resident

Organizer of Citizens for a Better Economy in Rockingham County

VOTE NO ON MAY 6 TO THE HIGHER SALES TAX!

Ten reasons to oppose the sales tax increase:

It’s bad for education to tie school funding to this new tax.

It’s bad for lower income people especially, because they pay a higher percentage of their income in sales tax.

It’s bad for economic development and jobs.

It’s bad for attracting retail stores to our area.  Don’t give people another reason to shop outside our county!

It’s bad fiscal policy – government needs to reduce its spending instead. High taxes cripple our economy.

The current sales tax:  Virginia 5%, NC 6.75%.

Don’t raise our tax even more.

Don’t think this will result in less property tax.

The commissioners already voted against lowering property taxes if the higher sales tax is enacted.

The estimated money from this tax is a tiny “drop in the bucket” to pay for proposed new projects.

‘A government big enough to give you everything you want, is big enough to take away everything you have.’ Thomas Jefferson


Can you come to the commissioners meeting Monday night?

March 21, 2008

We need as large of a crowd as possible to come to the commissioners’ meeting this Monday evening, March 24, at 6:30 PM. 

The commissioners will be voting on two important issues: approving a taxpayer funded brochure to promote the May 6 referendum on a local sales tax increase, and a resolution to use higher sales tax proceeds for education capital needs in Rockingham County.  This shell game approach is common to push for tax increases, so proponents will be able to say it’s “for the kids.”

We need as much support as we can get to resist yet another tax increase. 

Please let people know that it is NOT that we are against school funding. “For the children” is just a red herring to bring in more tax money, and keep spending it at higher rates.

There is already an $80 million wish list being promoted by proponents of this tax hike, even though the best projections see the higher sales tax rate generating less than $2 million annual.
 
This is a unique opportunity for people against higher taxes to make it known that we demand reduced spending by our county government. 

We are just getting started building our committee. If you are interested in joining us, please contact Jeffrey Sykes at this email or jeffreyhsykes@gmail.com

Sincerely,

Jeffrey Sykes
Frank Zulauf
Citizens for A Better Economy in Rockingham County

Seven reasons to oppose the tax:

It’s bad for economic development and jobs.
It’s bad for attracting retail stores to our area.
It’s bad fiscal policy – reduce spending instead.
Current sales tax:  Virginia 5%, NC 6.75%.
Va. has less income tax and gas tax too.
Wonder why more new stores are in Danville?
Don’t give people another reason to leave.