Chatham’s Sales Tax Increase will hit rural poor the hardest

Date: Thu, 6 Feb 2020 12:06:06 -0600 (GMT-06:00)
From: Bill Crawford
Subject: Chatham County sales tax increase

There are a number of points I’ve had thrown my way regarding this issue, which is a good thing. But they have to be answered.

“Chatham is a wealthy county”, which I guess means that we should all be able to withstand giving some more tax money. Chatham does have it’s share of high income earners, and they probably comprise a higher percentage than most counties because we are more rural than some of our neighbors. But we also have a decent amount of middle class to poor, more so as you go away from the more prosperous North and toward the West end. This group runs the gamut from essentially living off of government services to those who don’t go shopping without clipping coupons. I am not comfortable talking so breezily about other people’s money as others in this debate.

“Chathamites don’t shop here”. There are many reasons for this. Chatham has been a “bedroom community” for a long time, as befits a haven for would be retirees. We have less than our share of business in Chatham in part because of our lesser population density. It also is a byproduct of a County Board that does not do well attracting business. More on this later.

“The tax impact will be minimal”. This is another one of those calculations where the impact is measured in terms of a single shopping trip, rarely bothering to add up what happens over the course of a year. This is another favorite of the
‘other people’s money’ tax increase crowd.

“The sales tax will collect money from people from outside Chatham”. That is actually a good argument. The sales tax has it’s positive attributes. It isn’t any more regressive than a property tax, anybody who rents pays property tax to their landlord. If the Board were looking for this to offset a property tax CUT, I wouldn’t have a problem with it. It is the sales tax following a property tax increase and increased property assessments that brought me to this point.

“The tax increase will be targeted to education and affordable housing”, an interesting ploy on a few levels. The first being the implication that anybody who would like to see government stop growing as fast as some here want it to here do not want good schools or affordable housing. Second, neither of these are possible without the new revenue stream. Finally, that the “targeting” is mandated by anything stronger than the whims of the Commissioners. Nearest I thought, this money will go into the general ledger.

Then, the really laughable notion that this will bring us to “parity with neighboring counties”. I know our sales tax is lower than our neighbors. I see this as an advantage to attract shoppers, new residents and businesses. Some people see it as a hole we have to crawl out of. This mentality is indicative of the business mismanagement of this Board. They regard themselves as good for business, maybe because they are- in comparison to the George Lucier Board before 2010, who were positively hostile to business. They are trying to have a competition I don’t want to “win”. Attracting new business increases sales tax revenue without raising rates, and the new income keeps government from relying so heavily on homeowners to balance the public budget. Raising tax rates tells outsiders you are either comfortable to larger government, hostile to business and consumers, or both.

Regarding the signs the Chatham Republican Party put up, we did so because we thought the Dasher Board was using the March primary ballot to sneak this one in under the radar, and we were simply looking for enough voters to be aware to make it a more valid referendum. I want everybody to vote.Early voting runs from Feb. 13 to Feb. 29. Election Day is March 3rd.

Those of you who have gotten your new property tax notices, ask yourself: how much money do these people need? Yes, we need new schools, especially in the Northeast part of the county. The previous Democrat Boards gave you a Judicial Center for $20 million+ that is the size of a basketball arena ten years ago- could we have saved some of that debt service for things we need now? The Democrats are on their own program, and they want more of our money to fund it. When does it stop?

You can slow this runaway train this month, and vote down the sales tax increase. You can bring it to a halt in November, by voting for the three Republican County Commissioner candidates: Jimmy Pharr, Jay Stobbs and Andy Wilkie.

Postscript to Tarus BALOG: if you want a tax rate that is easier to calculate in your head than 6.75%, don’t stop at 7. Why not go for an even 10%? (grin)

Bill Crawford