No New Taxes ... but a whole lot more fees
It's budget season in New England. All over the region, cities, suburbs, and small communities are preparing their budgets for the next fiscal year that starts in July, and except maybe in the wealthiest communities, it is ugly.
The next time you drive through town, to your child's school, or to the park, or past the police station, think of this: your taxes pay for all of those services. And unless you have an all volunteer force, taxes pay the firefighters, they pay for your street to get plowed and your trash service or transfer station.
In large part, it is property taxes that pay for those services, and this makes sense because the community should pay for those services it chooses to offer.
Except:
What if the cost of those services exceeds the community's ability to pay? What then? What services would you cut? Police, fire, teachers, sports?
Or would you raise property taxes, as some choose to do, to maintain those services? Great.
Except:
Let's say the couple next door to you, or the one down the street, are retired. They own their home, they payed off their mortgage long ago, but they are living on a fixed income and a significant tax increase on their property would strain their finances. Should they be forced to move? Sell their house and buy a condo, or move to a retirement community?
And it's not just property taxes, there are now fees to use the community transfer station, or maybe there's a pay by the bag program. The cost of parking in the center of town has gone up as has the fee for a dog license, a building permit, beach parking, In the schools your kids pay to join a sports team, and your system is considering new fees to join the chess club or the debate team.
The community next door to mine can't raise that kind of money from its citizens. Health insurance costs for municipal employees are up 20% this year, and the cost of heating oil for municipal buildings will take a bigger chunk out of their budget than they have had to deal with in years past. They are talking about closing and selling their largest elementary school. They've already closed two firehouses, which is being blamed for the death of a local woman from smoke inhalation when firefighters took nearly twice as long to respond as they would have before the close.
What's happening here?
Politicians love to talk about tax cuts, but they aren't as willing to acknowledge the impact on average taxpayers. You see, when taxes are cut at the Federal level, that doesn't mean that the government stops spending, they simply transfer the burden on to the states in the form of (usually smaller) block grants. Not to be outdone, state governors and legislators want to cut taxes too, and that translates into big cuts in aid to cities and towns. Scrambling to make up the difference, municipalities, particularly those with small business bases, seek to raise property taxes and increase fees.
This puts a much larger burden of generally agreed upon services upon the people who can least afford it; the poor and the elderly.
But when services (and federally mandated programs) are paid for through income taxes, the cost is more fairly distributed based on ability to pay.
Certainly there will be those who would call this "income redistribution," but really it's a sliding scale of contributions to services most of us would agree are needed.
The federal budget is large and complex. It's hard to know where the money goes, and every day that we hear about the cost of the war, pork-barrel projects, and bridges to nowhere, the level of mistrust leads to calls for tax cuts. Less and less money "trickles down" to cities and towns forcing citizens to oppose a 2 or 3% raise for teachers and police.
Municipal budgets are much smaller, and while they are hard to understand at first, they can be eye-opening and educational. They are public documents.
So if you have the opportunity to attend a town meeting, or a city council budget hearing, try to make the time. Learn about the needs of the town you live in and how it collects revenue and where those dollars are spent. And the next time a politician at the state or national level talks about tax cuts, ask yourself how those cuts will hurt your community.

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