Date: Sat, 8 Feb 2020 10:47:22 -0500
From: Tarus BALOG
Subject: Re: Chatham County sales tax increase
> On Feb 8, 2020, at 8:23 AM,Bill Crawford wrote:
>
> 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.
Thanks for your input. Allow me to respond.
> “Chatham is a wealthy county”, which I guess means that we should all be able to withstand giving some more tax money.
That is true to some degree. My main point was that our surrounding counties have higher sales taxes and lower per capita income and it doesn’t seem to negatively affect them.
> “Chathamites don’t shop here”. There are many reasons for this.
My point in bringing this up was that, since the sales tax is higher in the surrounding counties yet the data show that Chatham citizens still shop outside the county, the tax rate is not a factor.
> “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.
Uh, my minimum wage example was over the course of a year, or did you miss that?
Let’s go at this another way. Suppose you spent, over a year, a whopping $100K on retail goods and services subject to sale tax in Chatham County. I doubt there is a single person in the County who does that. Their tax would go up $250, or less than 69 cents per day.
Seriously, if I asked the average Chathamite what the sales tax was in this county, they wouldn’t be able to answer. If I further asked them how much of that went to the State and how much went to the County, they wouldn’t be able to answer. Why? Is it because I think Chathamite’s are stupid? Quite the contrary, it’s just that it doesn’t really affect us as much as other factors.
> “The sales tax will collect money from people from outside Chatham”. That is actually a good argument.
It’s a horrible argument, and one reason I didn’t bring it up. There is zero evidence that people will come to Chatham because we have a lower sales tax.
Think about it. Let’s say I live in Raleigh and I want to buy a $1000 television. The difference in buying it at Walmart in Wake County and Walmart in Siler City is $5. Now $5 isn’t insignificant but how much gas will I have to spend to make the trip? Two gallons? There goes the $5 savings. Plus I have to spend an hour in the car. How much is my time worth? Then there is the wear and tear on the car itself.
The only shopping experience I can think of that will bring people to Chatham is the Walmart on the border with Orange County. First, Orange doesn’t have a Walmart and second, even if the sales tax goes to 7% that is still half a point lower than the tax in their county. Thus the sales tax increase won’t even affect that, and yes, the County will collect in this one case money from people outside the County. The moment they build a Walmart across from University Mall that will go away.
> “The tax increase will be targeted to education and affordable housing”, an interesting ploy on a few levels.
Heh, it’s not really a ploy, it is the stated reason given for requesting the sales tax increase. Of course, the Board could be lying about it, but that is a different matter. By using the term “ploy” you are trying to imply nefarious reasons that I don’t believe exist.
> 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.
Why is it laughable? The data show that the current County sales tax has zero effect on shopping habits, so what evidence do you have to support your assumption that it is an advantage? Perhaps if the County had more revenue to work with they could make it more attractive to businesses, like our neighboring counties can.
> 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
Heh, no. You did this because no one likes taxes, and opposing a tax increase, even a reasonable one, is pretty much a win-win. If the referendum is defeated, things continue as normal and there are no immediate negative impacts. If it wins, you get to say you’re still the “anti-tax” party. Now *that* is a good ploy and a applaud you for it. It’s not in the best interest of the County but it is in the best interest of the County GOP. Kudos.
>
> Those of you who have gotten your new property tax notices, ask yourself: how much money do these people need?
These people? To paraphrase Pogo “these people” are us.
Do you have some glamorous perception of what it is like to be a County Commissioner? Do you think they spend all the County’s revenue on themselves, private jets and limousines?
No, it is spent on roads, and schools and police and fire fighters. It is spent on us to make our home a better place.
And I’m glad you brought up property taxes. I dislike property taxes. First, I spent money I already paid income tax on to buy my property, so why should I have to pay it again? Second, I have to pay taxes just to keep my property. Seems unfair. I much prefer consumption taxes like the sales tax.
> 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.
As an unaffiliated voter, I haven’t decided who I will vote for in the general election. But I do remember the last time we had a Republican controlled Board they ushered in a wave of uncontrolled housing growth that we’re still paying for today. Had they had the foresight to pay for it with impact or land transfer taxes, then us long term residents wouldn’t be here stuck holding the check. I wonder how next time will be different?
> 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)
It’s an informal fallacy to think that because I’m for a small increase in sales tax that I would be for a greater one. But yes, I would welcome a 10% sales tax if my property taxes went down by an equal or greater amount.
> “God does not play dice with the universe”
If you are going to misquote Einstein, perhaps you should use:
“The hardest thing in the world to understand is the income tax.”[1]
-T
[1] https://www.nature.com/articles/d41586-018-05004-4
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Date: Sat, 8 Feb 2020 11:44:32 -0500
From: Christopher Havel <>
Subject: Building at 133 E Raleigh St
2020-02-11