Thursday, December 06, 2007
Fawcett’s Faulty Logic
In trying to justify his vote—the tenth and deciding vote—in favor of the drink tax, County Councilman Dave Fawcett, the only Republican to vote for the tax, said that the base year assessment system drove him to it. County property tax receipts have barely increased since 2003 since the 2002 appraised values have been locked in place. The 2005 adoption of the base year plan has locked the 2002 numbers in permanently and has reduced the likelihood of future property tax revenue growth almost nil. Unless, of course Council and the Executive opt to raise the millage rate, something the Executive has pledged will never happen.
He went on to say in the newspaper account, “We have come to a point in time when we're going to need more revenue as a county.” Curious though that the Councilman voted for the drink tax but against the car rental tax. Is one type of revenue better than the other? Was he targeting bar owners and drinkers but not those who rent cars? There are more questions than answers in deciphering the outgoing member’s vote. But it is clear that heavy pressure was brought to bear on the Councilman to be the necessary tenth vote.
But here’s the really sad part: In his zeal to correct for the base year assessment system by voting for a new tax, he may not have realized that voting against the drink tax might have forced the issue against the base year. Instead, the tax revenue machine now rolls merrily along with taxes on drinks and car rentals set to fill the budget void. It is also important to note that with a Supreme Court decision on the base year looming, Allegheny County could be in the situation where it is forced to abandon the base year and reassess periodically while still levying the drink and car rental taxes, along with an extra one percent sales tax.
“You need revenue to run a government.” That does not sound like the mantra of a self proclaimed fiscal conservative. A fiscal conservative would have taken a hard look at County government and come up with savings from each department or seen what functions maybe the County ought not to be performing. Indeed, Mr. Fawcett apparently never recommended any major spending reductions. Moreover, his solution was just a different mixture of taxes.
Sad to say, but with Council members looking to non-profits for revenue, permitting new taxes, and letting personnel costs get the best of them, the chasm that once separated Allegheny County government from the City of Pittsburgh government appears to be getting smaller.
He went on to say in the newspaper account, “We have come to a point in time when we're going to need more revenue as a county.” Curious though that the Councilman voted for the drink tax but against the car rental tax. Is one type of revenue better than the other? Was he targeting bar owners and drinkers but not those who rent cars? There are more questions than answers in deciphering the outgoing member’s vote. But it is clear that heavy pressure was brought to bear on the Councilman to be the necessary tenth vote.
But here’s the really sad part: In his zeal to correct for the base year assessment system by voting for a new tax, he may not have realized that voting against the drink tax might have forced the issue against the base year. Instead, the tax revenue machine now rolls merrily along with taxes on drinks and car rentals set to fill the budget void. It is also important to note that with a Supreme Court decision on the base year looming, Allegheny County could be in the situation where it is forced to abandon the base year and reassess periodically while still levying the drink and car rental taxes, along with an extra one percent sales tax.
“You need revenue to run a government.” That does not sound like the mantra of a self proclaimed fiscal conservative. A fiscal conservative would have taken a hard look at County government and come up with savings from each department or seen what functions maybe the County ought not to be performing. Indeed, Mr. Fawcett apparently never recommended any major spending reductions. Moreover, his solution was just a different mixture of taxes.
Sad to say, but with Council members looking to non-profits for revenue, permitting new taxes, and letting personnel costs get the best of them, the chasm that once separated Allegheny County government from the City of Pittsburgh government appears to be getting smaller.
