Monday, January 22, 2007

Project Destiny & Other Bogus Taxes

Most of this rant is in response to an ongoing discussion concerning the proposed PD tax, supposedly to be voted on in July of '07, found at absolute des moines. Since I am no longer allowed to post there, this blog is my way of getting the word out........................................................
First of all, I believe that some taxes are neccesary, if for no other reason than to provide a way for income redistribution to be determined by elected…and non elected (aka “appointed”) officials.
But I hope that many here are against any more new taxes.
Some history about how taxes have been sold to all of us in Des Moines, Central Iowa, and the State of Iowa:

1) Back in the mid 1980’s the hotel/motel tax was sold to us as a way towards property tax relief. After all, none of us hicks would have to pay such a tax because we didn’t stay in local motels!
Guess what; All of us pay this tax anytime we travel, and such a tax is passed onto all of us whenever we travel, be it for business or personal trips. The simple fact is that no business pays any taxes, business owners simply pass this additional cost onto their customers in the form of price increases.
Do ya think that maybe a way to attract new businesses and tourists to Iowa would be the abolition of this tax?

2) In the early 1980’s the state imposed a “temporary” sales tax increase from 4 cents to 5 cents per dollar. Also known as a 25% tax increase. All in the name of cutting taxes, because you see, a tax increase will actually lead to a tax decrease. By the way, that was another temporary tax made permanent.
(Apparently our city, county and state “leaders” actually did inhale back in their college happy, happy, happy days.)

3) Prairie Meadows (PM) was sold to Polk County tax payers as yet another path to property tax relief. In fact, back in the 1980’s it was touted as a way to completely eliminate residential property taxes in Polk county. Later, PMs’ proponents backed off of that extreme claim and instead promised that revenues from the horse racing would provide property tax “relief” while also providing additional revenue to be used in a way to later be determined (rainbows, sunshine and kumbaya also known as RSK).
Then PM went bankrupt. Apparently the horse racing thing didn’t pan out. Kinda like the Waterloo Dog Racing track. And the Dubuque Greyhound track, and the Coucil Bluffs dog track.
And today we in central Iowa several full blown casino’s out there that do not generate revenues. They merely tax the stupid to fund the pet projects of Polk county bureaucrats such as……programs to counsel problem gamblers. Wow!
We were suckers for allowing this to happen.

4) The State lottery was sold as yet another way to the yellow brick road of tax relief for the entire state.
And the results were? RSK. Today there is talk of adding yet another “temporary penny tax” to the state sales tax. For the children. Oh, and for “tax relief”. Again our elected officials promote yet another tax increase as yet another way to cut taxes *and* provide “amenities” that will supposedly attract people to our state. Yeah riiigght. Makes me want to move to a state with even higher taxes, you know. So that those in government can spend my money better than I can on amenities that I will not use.
How many reading this regularly visit Greys Lake?
That new open air ice rink downtown?
Yeah, me neither.

God forbid that the taxpayers are in charge of our own hard earned money. Better it be spent for pet projects.
http://www.globegazette.com/articles/2007/01/16/latest_news/doc45ad0eb731054633141402.txt
Like the state sponsored lottery is not a scam?
Touch play machines anyone? Scam, Scam, Scam, central planning, central planning, central planning. Bueller? Bueller?

5) The LOST. Again, that was sold as a path towards property tax relief. Chime in if any of you Polk county home owners have seen a property tax reduction in excess of what you pay in additional sales taxes. So far as you renters; You pay property taxes as part of your rental fee. Have any of you experienced a reduction of your rental payments due to the LOST? Oh, and are those sales taxes deductible for anyone out there? Try to deduct state and local sales taxes and you will find yourself in jail.

6) Tax abatement for new construction: Who picks up the slack for all of these tax abated homes? Answer: Everybody else owning a home built since 2002. And all renters. Again, businesses do not pay taxes. Developers do not pay taxes. They merely collect them from their customers and forward that revenue to the taxing authority.

7) Vision Iowa: How exactly does this income confiscation scheme help the Iowa taxpayers? Maytag, Bandag, Amana, that organic food producer in North Liberty that went bankrupt, (Dreamers help make Iowa City what it is :
http://www.press-citizen.com/opinion/pceditorials/staffedit122403.htm)
the Iowa Pork, uhh rain forest just to name a few. How have any of these projects funded by us taxpayers actually been good for our communities in the long term?
Answer: It’s money that has been pissed away for the purpose of influence peddling.
8) The Pork, err, Oman’s Rain Forest dream. So far over $3,000,000 of the $50,000,000 has been spent for “administration” and “promoting” this latest scheme of tax confiscation. Call it what it is: It IS NOT “development”. It is taking money from taxpayers to fund one persons hobby…..of taking money to fund……one persons hobby.
I challenge anyone to provide proof that the “Great Ape Trust” (another Oman project subsidized by....wait for it……..taxpayers!) Wow! Have any taxpayer relized a benefit from this project other than the great david?

http://state29.blogspot.com/2006/12/vilsack-with-all-due-respect-to-those.html

Again, taxes do not “generate” revenue. More taxes are merely a form of confiscation to pay for bagels and donuts for the privileged:
“Isn't it funny how Grassley is more concerned about pork when it involves things like $12 bagels and $14 cookies?”

http://state29.blogspot.com/2006/12/vilsack-with-all-due-respect-to-those.html

While writing legislation to favor his friends:

http://state29.blogspot.com/2005/11/senator-chuck-grassley-weasel.html

Anecdotals: I recently sold a home built in 1971 for $128,000. Said home is assessed by Polk county as worth $184,600. Can you say over-appreciated and over taxed? The new owners plan to ask the city for a reduction in the assessed value (good luck to them as I am not aware of a single tax in Iowa or Des Moines that has been reduced). Why this disparity? Look at tax abatement for new construction for the reason.
B)There is for sale on the SE side of Des Moines a newer home that sold at $202,500 two years ago. Current asking price? $179,000. Why is that? Even a tax abated home located in Polk county can’t sell for it’s original list price? The fact is that people are looking to alternative locales.
(Reference Potters Field.)
Soon tax abatement will finally be found to be one of the largest shell games ever foisted upon the residents of Des Moines. While offering the carrot of temporary tax abatement, the city and county are working a game for developers while proposing more taxes to be paid by us "masses" in the form of additional permanent taxes such as a continuation of the LOST, an additional Statewide “penny” increase in the sales tax (a 17% increase for those of you keeping score) for the schools/children of course and another local (no doubt “temporary”) income tax for Polk county residents. Again, sales taxes are not deductible on your income tax returns.
So far as the PD tax; It’s being sold to residents of three counties with the threat that any county that fails to go along with such a tax increase will suffer. This is nothing more than a form of extortion.

Back to the LOST. Initially it was to be a temporary tax. But before leaving office to head a much smaller school district in Illinois (and does that raise the question of whither he was dis-invited by the DSM skoolbord?), Witherspoon was promoting a movement to make the LOST permanent. This for a tax that was voted down three times by Polk County taxpayers and was finally passed in 1999 only because it’s proponents successfully lobbied the state legislature for a rule change making it possible for a simple majority of voters to approve such a tax. And a simple majority they have proven to be (I’m not posting this to make friends, after all. I’m just trying to wake up the true tax payers of Polk, Warren and Dallas counties).

It’s been over 7 years now since the Polk County LOST took effect: All of you experiencing a property tax or rental reduction payments please raise your hands.
*crickets*
And it is fact that Des Moines city manager Clark is a proponent for a local city/county wide income tax. He trial ballooned that idea nearly a year ago in front of the DMAAR. I was there and why this was not widely reported I have no idea. Oh wait, I do know why this was not widely reported. The Des Moines Register has yet to find any tax increase that it doesn’t like, unless said tax is assessed for the purchase of a newspaper.
Think about this: Do you pay sales tax when you purchase a newspaper such as the Des Moines Register?
Do you pay a sales tax when you buy a magazine?
Hmmm. Why the difference?

Anyway, look for the local income tax proposal to be once again pitched in about a year after the July ‘07 vote for the PD goes down in flames.

Quote from a post at absolute des moines:
“I can understand that some don't want to have to pay for improvements, and projects that can be seen as "white elephants", but there are likely plenty of people that share the pro-progress sentiment, backed by business and government leaders that do like to have these things to better the communities they live in, and that takes an investment.” (EQ)

Then let private entities take the lead. The Fleur Drive Beatification project comes to mind as a project exemplifying private enterprise taking the lead instead of the taxpayers being hooked for another tax increase.

It is widely believed that Principle Park (currently 3X over budget) will “enhance” the community. Who is going to pay to maintain that project? Not to mention that this particular project is already over budget! So far as other downtown “renovation” projects; See Walnut Street. Ohhhh!, Look at the pretty bricks!
Ohhhh? Look at all of the foot traffic to all of the succesful retial based entites that line, line I tell you that downtown street. But at least that project kept Younkers downtown.
Oh, wait. Nevermind.

Grey’s Lake and the Fleur Drive beatification project: This has enhanced Des Moines exactly how? Oh, I see; Tax the many for the benefit of the few.
The fact is that the property owners of homes built prior to 2002 and those who make a living in Polk county and those just passing through who happen to stay at a hotel or motel will once again pick up the slack for yet another project that initially was to be financed by the Principle Group. Speaking of; that hotel/motel tax was proported to be a temporary tax that would provide………property tax relief.
Funny how all of these “temporary” taxes intended to provide tax relief for Polk county residents tend to hang around forever while providing zero property tax relief unless one defines tax relief as being able to pay more taxes which continue to be frittered away on things such as CIETC:
http://mainstreamiowan.blogspot.com/2007/01/cietc-still-ripping-off-taxpayers.html

Enough.

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