Options to raising taxes? | Eastern North Carolina Now

    Publisher's Note: This article was initially published by our friends at the Beaufort Observer.

     Having recently attended a Beaufort County Board of Commissioners meeting where County Manager Paul Spruill presented the budget for the next fiscal year, I came away with more questions than answers. At the close of the presentation, it would appear that property owners are left with three options.

     1. An increase of 10% of the property-tax rate to 55 cents.

     2. The opportunity in 2011-2012 to vote for a referendum which would raise the sales tax to 8%, thereby           lowering the property tax rate to 53.5 cents.

    3. Or, failing to pass the referendum (which is likely), to continue the property tax rate at 55 cents plus           whatever increase may occur in the future.

     Obviously, there is a huge disconnect between our representatives and the taxpaying public.

     If our representatives would take a close look at the world around them, I think they would find that most people who pay their taxes have adjusted, or are adjusting, their standard of living downward. Wouldn't it be wise for government to do the same? The people involved in the budget process claim they are only trying to hold their ground. Wouldn't it be nice if the rest of us could do the same? For instance, the school board is sitting on slightly less than 3 million dollars in a reserve fund. Incidentally, that comes darn close to closing a budget gap of 3.4 million dollars. With your income and investments at a standstill, how's your reserve fund? Reserve funds exist for the kind of financial circumstances that we face today.

     The options that were laid out at the meeting regarding taxes are a false positive because all of the options involve an increase in taxes. Wouldn't it be nice if we had the option to decrease taxes and put more of our money into investments? Isn't that freedom?

     The concept of lowering taxes to stimulate economic growth is tried and true. Every time it has been tried it has worked. However, five of our seven county commissioners and the county manager haven't gotten the message yet. They voted "no" on a motion to hold the line on taxes. High taxes and the threat of higher taxes create uncertainty in peoples' minds and hurt the poor disproportionately. People begin to look for other alternatives and many vote with their feet. Take, for example, the North Carolina residents who live near states bordering North Carolina such as Virginia, South Carolina and Tennessee. They are doing their shopping in those neighboring states because gas taxes and sales taxes are lower. And more people are shopping on the internet to avoid paying North Carolina sales taxes.

     Raising property taxes and /or sales taxes will be felt in all markets from real estate to deli proceeds. To thrive, we must be competitive.

     I think our commissioners should spend some time lobbying the state legislature to lower sales-tax rates to at least 5%. This would put more disposable income into the pockets of the people who earn the money. This money could then be invested to increase sales and hiring. John Maynard Keynes was wrong. People handle their money much better than the government does. The government is in chapter 11, if you haven't noticed. If only our county manager and the majority on the county commission would notice.

     John LaCava is a retired educator. He taught for 38 years in the public schools and at the college level before retiring last year and moving to Bath with his wife Sallie. They have five children and two grandchildren. John has been active in the community wherever he has lived. He started an adult vocal group in Luray, Va., called the Main St. Singers and also started a performing arts center which provided education and live professional performances in music, theatre, and dance. He is a native of Lynn, Mass.; which is but a hop, skip and a jump from where the Revolutionary War began and John retains the Spirit of Patriotism his forefathers had. Now we're working hard to make him a Southerner.