Wrong Tax, Wrong Time, Chasing the Wrong Problem
Opinion July 3, 2012
Opinion by Bill Craig
There comes a time when we must say enough is enough. I am talking about the transportation tax referendum more commonly known as TSPLOST. This issue will be on the July 31st Georgia ballot.
I have been going over marketing material produced by the Connect Georgia group that is trying to tell us that if we vote yes, we will have more jobs, better roads, local control and that there is no plan B. I respectfully dispute these claims.
More jobs? We do need more jobs, but I believe that a higher tax rate in this state will dramatically reduce our competitiveness with surrounding states. If this tax passes, some parts of our state will be charging 9% for sales tax. Tennessee has a maximum rate of 9.75% but no state income tax. There are good reasons why Tennessee has attracted the likes of VW and Amazon. This year Whitfield County, which Dalton is the seat of, reduced its overall sales tax rate from 7% to 5% (five cents on the dollar) and boasts the lowest sales tax rate in Georgia. During the first five months of 2012 Dalton’s sales tax revenue increased 9.3% which is double the State average. In May, while the State’s overall Sales Tax Distribution to local governments decreased 2.1%, Dalton’s Sale Tax Distribution increased 5.5%.
Better roads? The proponents of this “ten year tax” (did I mention GA 400?) will tell you that Georgia is 49th in per capita spending in the US. I just drove from Rhode Island to Ellijay and I can tell you that Georgia has some of the best roads on the East Coast if not the entire US. So, per capita spending, in my opinion, is not an accurate measure of the condition of our roads. There are surely better solutions out there for improving our roads.
Local control? My definition of local control means county control by “elected” leaders that I am able to vote for. This tax bill turns county control over to an unelected “Regional Commission”. That takes away “local” control.
No plan B? If you are a true leader you will always have a plan B.
Benita Dodd, VP, The Georgia Public Policy Foundation recently stated “Proponents are campaigning hard. Unfortunately, the plan barely translates into improved regional mobility. Operating in an if-you-build-it-they-will-come fugue, regional leaders allocate more than half the expected funds to expensive transit projects, most of which would not offer congestion relief within 10 years, if ever. ”
Proponents will say “It’s only a penny” but in reality TSPLOST is a ten year 14% increase in the amount of sales tax that you are currently paying. This would represent the largest tax increase in Georgia history.
Our Gilmer County Chamber of Commerce recently conducted a poll among members and almost 80% of respondents indicated they would VOTE NO on the Transportation Referendum or TSPLOST. This is good news.
I urge you to vote NO to the transportation tax on July 31st. We can’t afford it. We need jobs and we are taxed enough already.
Sincerely yours,
Bill Craig
2011 Chairman
Gilmer County Chamber of Commerce
