Can spending outpace the ability to pay?
by James Simpson

Potomac News
Friday, March 5, 2004

Houdini practiced the art of misdirection. Basically, he kept his audience looking at what was happening on the left side of the stage while the real "action" was happening on the right side of the stage.
Our politicians use similar tricks every year when the budget comes up for a vote.

Tax increase advocates are heinous. They tell everyone that the only way the "proposed increase" in taxes could be reduced (Please read that again very carefully - not a reduction in taxes - just a reduction in the proposed increase) is for children, seniors, handicapped, (insert special interest group here) - to suffer.

They present two alternatives: 1) Take a massive hit in the wallet, or 2) Allow people suffer dire consequences. I believe this type of fear mongering is vile.

When speaking to soccer moms - they tell them that without huge tax increases the parks will deteriorate and may not be a safe enough place for their kids to play. When speaking to seniors - they tell them that without massive tax increases their medical benefits may not be available. When speaking to the disabled - they tell them that without huge tax increases the services they have come to count on may not be available.

This is the same tactic that was used by Democrats for decades, now it is used regularly by our non-conservative Republican county supervisors.

Fortunately this year we have two supervisors, Corey Stewart and John Stirrup, who are willing to stand up and support fiscally conservative principles.

On page 6 of the fiscal 2005 "Proposed Budget Plan," released at the Feb. 24 Prince William Board of County Supervisors meeting, the following "Policy Guidance" statement was presented: "Balance the need for additional services with citizens' ability to pay for those services."

Frankly I think the county staff is not sure what the term "balance" means. There is no balance, that I can see, when the average tax bill in Prince William County has increased by 37 percent over the last four years, drawing an increase in county revenues of 64 percent.

And now the county wants to raise our taxes by another 9 percent, resulting in an increase in revenues by 12 percent. How are these increases "balancing" the taxpayers "ability to pay" for all the services the county wishes to provide?

Let me clear up a few misconceptions, or rather misdirections:

Myth: The county has been lowering the tax rate for years.

Fact: The county is required by state law to set the tax rate at a level that will bring in no more than 101 percent of the revenue collected in the previous fiscal year. That means that the proposed rate would be 94 cents per $100 of assessed property value. Any number that is adopted "above" this number is an "increase," not a "reduction."

Allow me to reiterate this point: No matter what you hear from board supervisors, or the press, the tax rate is not going to be lowered. The vote of adopting the proposed FY 2005 budget in April will be a vote for an "increase in taxes" AS WELL AS an "increase in the tax rate!"

Myth: The Taxpayer Alliance Pledge will cause government services to be cut. Fact: The pledge allows for a reasonable rate of tax increases. In fact, by setting the rate to 99 cents per $100 of assessed property value, the county will still receive an additional $33 Million in revenue for the 2005 fiscal year. Only in fairy book land is this a "cut."

Myth: The Taxpayer Alliance Pledge sets an arbitrary number for property tax increases.

Fact: The rate set by the Taxpayer Protection Pledge allows for tax increases to occur - but not above that which most citizens also realize in their paychecks. By combining population increases with inflation rates the increase will accommodate new residents and allow for general increases tied to the economy in the cost of doing business.

Myth: Prince William no longer has the highest tax rate in the commonwealth.

Fact: The $1.16, fiscal 2004 rate, frequently quoted by county staff, doesn't represent the 7 cent fire levy. At this combined rate of $1.23 per $100 assessed property value, Prince William does have the highest tax rate in Virginia. Some politicians are quick to point out that counties like Fairfax don't have any volunteer firefighters. So what? What is important is the bottom line, which is too large.

I hope you keep this information in mind the next time a supervisor tells you something like: "Prince William County has accomplished [certain] feats while lowering its real property tax rate by 15 percent and running record budget surpluses." This is simply misdirection.

I would love to hear from anyone who has noticed an increase in services commensurate to the massive tax increases. Please! -?I'm not kidding. If you feel that you have received a 64 percent increase in services provided by the county over the past four to five years, let me know about it.

On the other hand... if you are upset with the seemingly endless property tax increases - let your supervisor know.

When you are silent regarding such issues as massive tax increases, politicians accept that as tacit approval for their actions.

James Simpson is vice chair of the Prince William Taxpayers Alliance. He can be reached via e-mail at JamesSimpson@aol.com