Tuesday, July 17, 2012

WDT: Sales Tax Increases Allow Government as Usual to Continue

     Robust sales tax numbers and the formulas used to distribute the local share are touted a a means to hold the line on property taxes, but the revenue stream is also a disincentive to changing anything.
      The use of sales tax as the primary revenue source for local government has allowed the cost of local services to be spread over a much larger base than solely using property taxes which garner controversy when raised.
      Jefferson County's (and the City and towns) haul on sales tax was up 11% in the last quarter compared to a year ago.
      Imagine if someone proposed a 20 to25% increase in property taxes, as that is what would be needed to achieve the same increase in revenue.
      Since sales tax is a flat tax, escalating gas prices or overall inflation actually increase governments take meaning things that are tough on the folks are looked at differently by government bean counters.
Watertown Daily Times | Jefferson, St. Lawrence and Lewis counties’ sales tax revenues jump slightly in second quarter

No comments:

Post a Comment