Thought you might enjoy Tom Ashcraft’s take on Mecklenburg County’s budget show:
Though liberals always want more taxes and more government, they know they’re subject to voters’ revolt if they go too far. Hence, right now Jennifer Roberts & Co. may go for what they deem maximum tax increase, knowing the next election is a year and a half away. Then next year, with perhaps the economy doing better and generating more local revenue, these same folks will propose a very modest tax cut, making sure to take credit with voters only a few months before the 2012 election.
Thus, over two years the Democrats get a net increase in size of government, but strike a posture as tax cutters right before the election.
Playing into the hands of this Democratic approach are timid Republicans who perennially advocate a “revenue neutral” property tax rate. They achieve no policy objective, because they’re in the minority. Moreover, they create no dynamic in our competitive political system which would set them apart from the controlling liberal Democrats. Instead of drawing attention to the fact that Mecklenburg County is bloated, wasteful, and poorly managed, they get lost in an intramural debate between Harry Jones and his bureaucrats, on the one hand, and the Democratic majority on County Commission, on the other – all pushing for gradual tax increases over time.
This dysfunctional pattern is how Charlotte-Mecklenburg has achieved – for many years now – the unpleasant distinction of imposing the highest tax burden per capita among large municipalities in N.C. (See “By the Numbers” report, John Locke Foundation.) Alas, this has been done with little or no debate to show that local taxes here are 10 to 20 percent higher than they should be, compared to the better-run local governments of our neighbors.
Apart from Commissioner Bill James, who’s recently been engaged on the tax debate and advocates a “revenue negative” tax rate, where are the other three Republican County Commissioners? It’s past time taxpayers got a straightforward debate over whether we shall have more taxes and more spending or less taxes and less spending.
Two things baffle me about local fiscal affairs. One, the local Republican establishment justs sits back and takes it. And two, the tax-and-spenders really seem to think local government delivers effective and competitive service. That combo is absolutely deadly for Charlotte’s future.
Because Char-Meck’s services underperform, the impulse will always be to throw more money at them in order to “fix” them. And without effective opposition to that approach, it will happen. Repeatedly. Until all productive private sector activity grinds to a halt.
And because county sales tax revenue is $70m. below pre-recession highs, the proposed property tax hike set the precident of becoming utterly dependent on property taxes to fund an ever-growing local public sector. That is a recipe to drive business activity out of a high-tax jurisdiction.
