[Peace-discuss] Re: [sf-core] FW: VOTE! 1% county sales tax for schools

Fri Apr 3 13:25:30 CDT 2009

[I have no brief for the Libertarians, but I also haven't heard a good response 
to this argument against a regressive tax, set out by the their local chair last 
fall.  Is there one? --CGE]  	

	Voters should reject harmful sales tax increase for schools

On Nov. 4 Champaign County voters will be asked to approve a 1% sales tax for 
school facility expenditures such as new construction, repairs, energy 
conservation and security. The tax will be collected throughout the county and 
allocated to our 14 school districts based on enrollment.

Although officials say they need more money for schools, this is the wrong tax 
at the wrong time. This tax is regressive, puts an undue burden on taxpayers, 
has no sunset and takes power away from voters. It's ill-conceived and should be 
rejected.

The greatest problem posed by this tax is what our Legislature may do with our 
money. When the General Assembly instituted a state lottery, it promised to use 
the money for education. Although it was indeed used for education, the 
Legislature reduced the school money coming from the General Fund by the same 
amount. Education had the same budget as before, but the Legislature had more 
money to pay for new projects.

Insiders expect the Legislature to play the same game with the school facilities 
sales tax. Whatever money we raise locally will end up reducing the money coming 
from the state.

Sales taxes are always regressive because lower income families pay a larger 
percentage of their income in sales taxes than wealthier families do. Although 
this tax won't apply to food, medicine or vehicles, it increases the cost of 
clothing, school supplies, toiletries and other basic items.

The state collects a 6.25% sales tax, an amount exceeded by only seven states. 
When local sales taxes are included, Champaign County residents pay 7.75%. In 
March Cook County voted to raise its sales tax to 10.25%, the highest in the 
country. If the school sales tax passes, we won't be far behind.

Illinois citizens are overtaxed in other ways too. Our gas tax is 39.5 cents per 
gallon, exceeded only by California, Connecticut and New York. And the 6.25% 
general sales tax adds another 20 to 25 cents to a gallon of gas.

According to the ALEC-Laffer State Competitiveness Index, Illinois is ranked 
48th, beating only Michigan and Ohio. Our high taxes encourage businesses to go 
elsewhere, and hurt our economy. Fewer businesses mean less revenue, which makes 
it harder to pay for necessary services.

A new tax is not good policy for families already experiencing economic stress.

Many farmers, developers and other large landowners support this initiative 
because it may later reduce government reliance on property taxes. According to 
the Tax Foundation, Illinois residents paid $1407 per capita in property 
taxes—the 9th highest in the nation—in fiscal year 2004, the latest year for 
which the Census Bureau has published state-by-state data.

Although local school districts say they will reduce their property tax rates if 
the sales tax passes, any reduction will only be temporary and will be less than 
the projected income from the sales tax. And any reduction would be voluntary 
and could be changed in the future.

We are being given a tax increase, not a tax swap.

Another problem with the proposed sales tax is that there's no sunset clause 
mandating the end of this tax. And it can't be repealed as long as any school 
district has outstanding bonds which are being paid by this income stream. 
Because bonds last for years, the chances of repeal are slim.

Although Illinois and some local towns are losing residents, this tax will keep 
flowing to all county school districts whether they need it or not. Local 
residents won't get to vote on whether new construction is necessary, because 
school districts will be able to fund these projects without voter approval. In 
fact, the ability to avoid future tax referendums is the major reason school 
districts want this one to pass.

And for those interested in getting more money into the classroom, know this: 
This tax can only be used for facility needs, not the operating costs that pose 
the greatest challenge in our education system.

Although the chamber of commerce will be meeting with local legislators to 
discuss fixing the problems posed by this tax, nothing can be resolved before we 
vote. Given Springfield's track record, it would be ridiculous to vote for this 
tax and hope that all goes well.

We must demand that our legislators provide responsible solutions to our 
pressing problems. And we need to insist that our school districts fund their 
needs without bankrupting our economy and harming our citizens.

School districts have said they're so desperate for money they'll take it from 
any source. That's the political version of prostitution and is unworthy of 
those responsible for instructing our next generation.

This is the wrong tax at the wrong time. Vote “no” on the sales tax.

Dianna Visek of Urbana is chair of the Champaign County Libertarian Party.