Today’s Uptown paper of record includes a pitch-perfect example of fiscal propaganda. The editorial which claims that Republicans on the Charlotte city council will deprive Charlotte of enough money for police and roads if they do not agree to a property tax hike is pure hogwash. Worse, I suspect the author knows the argument is hogwash.
First, the myth that a tax hike would “pay for” police and roads exclusively. No, no it would not. A tax hike would provide revenue to fund things like the Mayor’s International Cabinet and millions in “economic development” spending. A tax hike enables City Manager-for-Life Pam Syfert to divert $60 million in future property tax revenue away from the general fund, which funds things like police and roads, and to the $156 million Wachovia Uptown Arts Complex. A tax hike would fund things like a 17 percent hike in the city manager’s 2007 budget, which would grow to $12.3 million from $8.3 million in 2004.
In fact, toss together the city manager’s office, the city finance office, and the catch-all “business support services” — basically IT and other city equipment support — and you get $35 million in 2007 spending. Those roads that we have to raise taxes in order to pave? Charlotte DOT gets all of $21 million.
Make no mistake, a vote for a tax hike is a vote for this kind of fiscal madness, not for police or roads.
Next, the myth that Charlotte is somehow undertaxed compared to other North Carolina cities. No, not at all. Not if having the highest total tax burden in the state matters. Charlotte is the only city in the state to have a per capita tax burden above $2000 — $2185 to be exact. And that does not include the fee hikes imposed last year. Looking at just property tax burden, Charlotte is tops again in the state at $1231.
You see, the city of Charlotte has excelled at imposing all manner of taxes on local residents and then walling that money off from the general fund. Such is the case with the $50 million a year the half-cent transit sales tax raises each year. And do not forget the whopping increase in the business privilege license fee, which the city council raised last year to hit not just the first $2,000 in sales, but the first $10,000. Small business owners surely have not.
Make no mistake, a vote for a tax hike is a vote to continue to push Charlotte into the tax stratosphere compared to other North Carolina cities.
Finally, the simple, plain fact is that revenue is not a problem for Charlotte city government, but the rate of spending is a big one. General fund revenues are supposed to hit $437 million in 2007, up from earlier predictions of $425 million, itself up from $377 in 2004. There is simply no way that actual municipal needs, not “wants,” cannot be adequately funded with that kind of revenue growth.
Make no mistake, a vote for a tax hike is vote for waste, fraud, and financial ruin.
