Salem News
—
It won't happen.
Give local government more money and it will spend every penny of it -
on more employees and equipment, on raises and benefits in municipal
union contracts, by any wasteful and capricious means available.
Incoming
Gov. Deval Patrick during his campaign touted "local option" taxes as a
means to reduce property taxes. Local option taxes mean adding a local
component to state taxes such as those on meals or hotel rooms. A
community might, for example, increase the 5 percent state meals tax to
6 percent on its restaurants. The state would still get the 5 percent
on the value of meals served while the town would keep the additional 1
percent.
Patrick has suggested such taxes would help communities
reduce their dependence on the property tax. His finance chief Leslie
Kirwan has suggested local option taxes would be part of the Patrick
administration's policy.
The problem in municipal governments is
not that they collect too little money. It's that they spend too much.
Even with the minimal reductions in the rate of growth of local aid
during the Romney administration, few communities have shown any real
fiscal discipline. Managers, mayors and selectmen continue to approve
generous contracts for teachers, police, firefighters and other
municipal employees. They cave to union demands that expensive benefit
packages cannot be altered with other forms of compensation.
Local
administrators have been able to get away with this fiscal
irresponsibility because growth in the number of homes in their
communities and increasing home values have allowed them to take ever
more in taxes from homeowners. Where homeowners balk at rapidly
increasing taxes, local leaders shift the burden to businesses through
tax classification. That system permits two property tax rates, one for
homeowners and another, higher rate for businesses.
With the
housing market hitting its peak, this shell game cannot continue.
Giving local communities another source of tax revenue isn't going to
save anyone any money. It will simply give local government carte
blanche to continue its free-spending ways.
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