Wednesday, March 24, 2010

Tucson Taxes

The latest edition of the local news reports that the City is planning another property tax increase to retire some $18 million dollars in debt that they have decided is important to get rid of in this article:
City plans tax hike to pay debt

In tough economic times, governments, both local, state and federal, are finding less revenue coming in and more difficulty borrowing money. The standard response seems to be to increase taxes. Rather than cut back, spending is often increased and taxes are raised to pay for more and more. Now that many governments are in crisis mode, they are finally forced to make some cut backs, but these cuts don't match the loss of revenue.

Can you imagine running any viable business or household like this? I have tried spending my way out of financial problems before, and I can attest to the fact that it simply does not work. In fact, surprisingly enough, it can make things worse. I'll tell you that story some other time.

I am not opposed to paying taxes for things that are necessary. Like public schools. We don't send our kids to public school for a variety of reasons, but I think they are important. However, so many are convinced that spending more and more money on schools would improve the quality and the outcomes. Like so many other government programs, simply adding more money does not improve the results.

So, as your taxes grow, government deficits grow and elected officials frustration grows, all faster than ever, try to remember that giving more of your income (which may not be growing faster than ever right now) to them is not going to fix everything.

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