Tuesday, August 22, 2006

C.O.A.S.T. Breaking the Tax Pledge

“The pledge that COAST has agreed to is that there would be no net increase beyond the rate of inflation,” said Finney, who stressed he was speaking as an individual, not as a COAST leader. “The commissioners have very deliberately found ways to reduce spending, and they’ve done that with great flourish and great relish. It gives us a way to build a new jail without increasing the net tax burden on the people of Hamilton County.” (Read full article here from City Beat)

How can Finney not speak as a member of COAST on a tax issue when this is all about a tax issue? Even his good friend Phil Heimlich has said, “We’re not denying the fact that this is a tax increase. We’re not going to sugarcoat that.”

Hey Finney, here’s the bottom line:

The tax increase would generate $325 million to pay for a new 1,800-bed jail and $30 million in property tax reductions. Under the plan, the sales tax would increase from 6.5 percent to 6.75 percent for 10 years; the property rollback would last three years. So, let's then look at those seven years without a tax rollback and include today's rate of inflation, which is at 4.5% but if we go with yearly then the rate of inflation was at 2.5% last year... I believe we must go with the yearly rate of inflation to get a good gauge.

The rollback would save the owner of the average-priced Hamilton County home $86.29 in reduced property taxes over three years.

But it would cost each Hamilton County household an estimated $154.62 in additional sales tax payments over the same three years. But for the next seven years nobody gets a property rollback. So it is the same across the board for seven years.

So, to give Mr. Finney and Mr. Brinkman some help. Is the tax going to be at or below the rate of inflation?

Let's see... After all is said and done this is a 5.8% tax increase. That is way above the 2.5% yearly rate of inflation. The cost of living rate is usually around 3.3%. As a member of C.O.A.S.T., do you support this tax? It seems to me that the pledge is broken if you support Heimlich's tax increase.

The Taxpayers are much smarter then Finney or Heimlich have ever given them credit for... but now they have been found out and their numbers aren't crunching like they want them too. They have been busted using the jail tax as a re-election tactic. Pathetic!


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