Raising Taxes

From time to time you will be tempted to raise taxes in order to balance a budget or raise money for some other purpose.  Raising taxes is seen, by the general public, as something politicians do because they can.  As opposed to raising taxes for a specific need.

The only way government, any government, gets money is to take it.  Taxes, and fees do this; most people will pay taxes, gladly, if they know a few things.

  • What has all the money spent so far bought that is tangible.
  • Where has all the money gone?
  • Why is more needed.

If these questions are answered to the satisfaction of all then you can put a tax increase on a ballot and the people will go for it. But what if you don’t want to answer these questions?  Well, then the population will defeat the ballot measure and the taxes will not go up.

You could find a way to raise taxes for something and then not even take it to a ballot.  Such is the case in Portland Oregon.  Oregon does not have a law that restricts what sort of fees a city or county can place on a city or county utility bill.

So mayor elect Sam Adams has this idea that he can use the City of Portland water bill to collect four dollars form every water meter in town.  He desperately wants the citizens of Portland to buy into this idea, literally.  His thinking is that the city can use the money to fill potholes, add bike lanes, and fix the stoplights.

What is wrong with the idea is that collecting money on the water bill for streets has absolutely nothing to do with water and sewer.  What Sam has not done is float the idea of offering city backed bonds in denominations of 5, 10, 50, 100 dollars.  Bonds with a twelve percent rate of return over two years available to everyone.

No, adding road charges to the water and sewer bill is proof that Sam has he head, Down The Sewer Pipe – Politically Speaking

Sherman

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