Nickeled & Dimed

By Jon Tack 

A penny saved is a penny earned but a penny taxed is money you’ll never see again. 

On Tuesday, May 3^rd the city governments of Linn County want their residents to vote “Yes” on extending the Local Option Sales and Services Tax (L.O.S.S.T.). This is the same tax that was expedited into being in 2009 to help with the ’08 flood recovery. 

The current LOSST tax is in effect until June 30th, 2014 totaling 5 years. The extension would start July 1^st, 2014 and expiring June 30^th, 2034 totaling 20 years. The City of Hiawatha is telling us that the money raised would be used as follows: 

1. Up to 10% for property tax relief

2. The specific purposes for which the revenues shall otherwise be expended is/are 100% for any lawful purpose including, but not limited to, retirement of outstanding obligations, water & sewer system improvements, street improvements, public safety, library, and park & recreation improvements.  (Bold and italics lettering are my emphasis and I’ll explain later on.) 

While the majority of these projects are legitimate needs there are serious issues with the reasoning to extend this tax.  

The current L.O.S.S.T. tax expires June 30^th, 2014. Why are we voting on this three years before it expires? Do the City governments really need to plan that far ahead when their annual budgets are only completed 6 months before the next fiscal year start? No they don’t. 

When Linn County residents vote “No” on this travesty the politicians can put it back on the ballot multiple times before it expires. This is what happened in 2009. Hiawatha residents voted no on the tax but then the City came back and told us about “all the money that we wouldn’t be getting” so they held another vote and this time the results were for the tax. There is no doubt in my mind that these socialist politicians will keep holding elections until they get the results they want. 

The extension of the L.O.S.S.T. tax is for 20 years. This is a death tax. Not that it’s enforced upon death but that it doesn’t end until you die. The Citizens of Iowa are aging, young people are not staying and we just lost a seat in the House of Representatives. If there’s one sure-fire way to keep people and grow a community it’s to raise taxes. Kids graduating college when this tax would expire are being born this year and next. Kids graduating high school won’t be born until 2 years after the current LOSST tax expires (5 years from now).

The City of Hiawatha spent taxpayers money on full page, color mailings (two so far) to convince us that they should have more of our money to use. In these mailings they say, “Thus far, L.O.S.S.T. dollars provide much needed relief on our general fund, holding our FY10-11 levy rate steady.” Since when do City gov’ts raise levy rates in the middle of a fiscal year?

Throughout the mailers they continue with a theme that this tax will maintain or reduce the tax levy, possibly offer property owners “up to 10% for property tax relief” and the current 1% tax “diverts expenses from the City Operating budget, which is property tax funded.” Yet nowhere is it mentioned that the City’s won’t raise the tax levy as Hiawatha has done annually for the last several years to meet operating budget demands. So here we have a situation where property taxes are being raised to meet the budget yet they want to impose a tax that would give “up to 10% property tax relief”*. That’s not a guarantee, it’s emotional marketing. We’ll get nothing back when inflation really hits home.

*“I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them”. Thomas Jefferson

Hiawatha, of course, has listed the projects from which the funds raised were spent on including:

$25,376.83 for Christmas decorations

$27,358.06 for Park Improvements

$7,882.99 for City Hall Improvements (It’s a new facility!)

$10,543.31 for a Parks Master Plan

$23,879.99 for Parks – Mowing equipment 

A grand total of $95,041.18. In these tough economic times how many parks does a City need? Must they all be ‘Grand Champion’ best of the best? For the Mowing equipment justification the City said “…by allowing a reduction of annual operating expense which in turn, reduces pressure on property tax rates.”

If they were serious about reducing property tax rates they would:

1. Spend money only on the basics. No trails, no Master Plans, no Easter Egg hunts, no Christmas decorations, no park pavilions and summer concerts and no other unconstitutional spending.
2. Not promote a tax in which we might get a part of it back. Once the money is taken, it’s gone.
3. Stop raising the tax levy rates to meet the annual operating budget! That would be true tax relief.

Let’s take a moment and go back a little. Earlier I emphasized “any lawful purpose including, but not limited to”. Here’s what it really means: 

“any lawful purpose including…” - Rightful liberty is unobstructed action according to our will within limits drawn around us by the equal rights of others. I do not add 'within the limits of the law' because law is often but the tyrant's will, and always so when it violates the rights of the individual.  Thomas Jefferson. 

“…but not limited to” – We’ll use your money anyway we want even if we have to change the law or create or a new one to do so.

My vote will be “NO” on Tuesday. I understand that people need to come to their own conclusions so I shall leave you with the advice from a panel of experts for your consideration.

“Let each citizen remember at the moment he is offering his vote that he is not making a present or a compliment to please an individual - or at least that he ought not so to do; but that he is executing one of the most solemn trusts in human society for which he is accountable to God and his country.” Samuel Adams

“We must not let our rulers load us with perpetual debt.” Thomas Jefferson

“That the most productive system of finance will always be the least burdensome.” James Madison

“If Congress can do whatever in their discretion can be done by money, and will promote the General Welfare, the Government is no longer a limited one, possessing enumerated powers, but an indefinite one, subject to particular exceptions.” James Madison

“To compel a man to subsidize with his taxes the propagation of ideas which he disbelieves and abhors is sinful and tyrannical.” Thomas Jefferson

“Government is not reason, it is not eloquence, it is force. Like fire it is a dangerous servant and a fearsome master.” George Washington

“It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars of the world.” Thomas Jefferson

“If, from the more wretched parts of the old world, we look at those which are in an advanced stage of improvement, we still find the greedy hand of government thrusting itself into every corner and crevice of industry, and grasping the spoil of the multitude. Invention is continually exercised, to furnish new pretenses for revenues and taxation. It watches prosperity as its prey and permits none to escape without tribute.” Thomas Paine