"IT IS THE DUTY OF THE PATRIOT TO PROTECT HIS COUNTRY FROM THE GOVERNMENT." - THOMAS PAINE (1737-1809)


Friday, May 2, 2008

A TAX BY ANY OTHER NAME IS STILL A TAX

You can call it what you like, but a user fee is still a tax. An income tax that is to be used for property tax relief is still a tax. It's just putting money in my right pocket only to take it out of my left. Taxpayers aren't that stupid!

A wheel tax, public safety tax, food and beverage tax, county option income tax. These are all taxes that are being bandied about by our elected officials.

Where are your spending cuts and what have you done to reduce the size of government?

Trips to Hawaii and Japan under the guise of governmental business, $8 million plus banquet hall and clubhouse, leased cars, cell phones, overpaid consultants, filling up your personal car with gas at the county pumps. The waste goes on and on and all on the taxpayers' dime.

HAVE YOU HAD ENOUGH OF OUR TAX-US-TO-DEATH ELECTED OFFICIALS?

The choice then should be simple. THROW THESE RASCALS OUT ON TUESDAY, MAY 6TH AND VOTE FOR BETTER, MORE RESPONSIBLE GOVERNMENT.

Posted by Team Hammond at Friday, May 02, 2008

Wednesday, April 30, 2008

RECAP OF TEAM HAMMOND MEETING

About 65 people attended the Team Hammond Taxpayers Group meeting on Tuesday night at the Woodmar United Methodist Church.

During the introduction, Jim Premeske displayed documents obtained from county officials dispelling accusations originating from the mayor's supporters.

Featured guest speaker Mary Ellen Slazyk gave a brief history of school construction in the School City of Hammond and an update on the new high school. The School City currently has a construction bond debt of $289 million dollars. Add the cost of the new high school, remodeling of Gavit, and interest of $70 million, and the school city is looking at construction bond debt of nearly half a billion dollars. Ms. Slazyk also touched on the remonstrance petition. The next school board meeting is scheduled for Thursday, May 8, at the administration center. She encouraged everyone to attend and let the school board and administrators know they do not support a new high school when the school city is already swimming in debt.

A preview of the 2008 May 6th primary was the next order of business. Jim Premeske went over sample ballots of both Republican and Democratic candidates giving critiques of primary candidates, their past legislative records and any other noteworthy items of interest. He stressed it was important to get the word out about voting for quality candidates who are interested in real reform.

Candidates John Garcia, Nancy Moore Tiller, Raymond Fletcher, Cy Huerter, Fernando Urzua and George Janiec also were given time to speak about their candidacies and their platforms. They all spoke about the need for streamlining government, cutting unnecessary expenses, and making property tax reform permanent. They also talked about becoming more accountable to the voters who elect them. Wes Miller, Founder of Team Hammond, and Janet Venecz, wife of Hammond Democratic Chairman, Phil Venecz, were also in attendance on Tuesday night supporting Team Hammond's goals of good government and property tax reform.

Forming a Lake County Tax Alliance made up of interested citizens throughout Lake County was also brought up. The local option income tax will come before the county council before year's end, and citizens will especially need to put pressure on County Council members Tom O'Donnell and Ted Bilski to vote against the income tax. No matter what part of Lake County a person is from, it is time to band together to fight against the income tax in addition to more permanent property tax reform.

Remember, if you want real change, you have to change the way you vote on Tuesday, May 6th!

Just because someone is an incumbent doesn't automatically make them the more qualified candidate. Vote for the candidate who will best serve YOU and not the special interest groups, lobbyists and the party machine. YOU deserve better!

Posted by Team Hammond at Wednesday, April 30, 2008

Sunday, April 27, 2008

THE POLITICIANS DUPED YOU, THE TAXPAYER, GOOD THIS TIME

The activists tried to warn you. We tried to tell you what would happen. We warned you were going to end up paying even more and warned the politicians' spin machine and the media would try to sell you higher taxes couched in rhetoric that you are getting "relief". The protests dwindled to just a few hardcore activists at the end. Gary Welsh of Advance Indiana explains it clearly today.

FROM ADVANCE INDIANA:

"When a student fails to turn his homework into the teacher on time, he receives a failing grade. When your elected officials fail to complete their work on time, you pay for it. A Star report today indicates that most counties have not submitted the information the state needs to set property tax rates, including Marion County where the delays will cost taxpayers $30-$50 million in interest costs for the money local governments will have to borrow on a short-term basis to cover spending obligations. "That means homeowners may not know until late summer or fall what they'll owe, while local school districts, towns and other government agencies scramble to cover expenses in the interim," the Star reports. Marion Co. Treasurer Mike Rodman tells the Star tax bills might not go out until November--conveniently after this year's election. Maybe we should start withholding paychecks from the government officials responsible for timely submitting this information to the state like the City-County Council just did with the Marion County Coroner until they do the job they've been ordered to do under Indiana law."

From Hoosiers for Fair Taxation
Sunday, April 27, 2008

Posted by Team Hammond at Sunday, April 27, 2008

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Blunt Proof of the Feasibility to Permanently Abolish Property Tax

IMMEDIATE RELEASE
Media Contacts:
Melyssa Donaghy 317-938-8913
Max Katz 765-409-6669
www.HoosiersForFairTaxation.com

BLUNT PROOF OF THE FEASIBILITY TO PERMANENTLY ABOLISH PROPERTY TAX.
Hoosiers For Fair Taxation, Senator Delph, Representative Noe, Representative Elrod and many other legislators along with Stop Indiana, attorney John Price, Eric Miller's Advance America, and the Statewide Taxpayer Alliance know that property tax abolishment, without substantial increases in sales tax and income tax, is realistic and possible. The economist Dr. Bill Styring's 2/2/2 Plan demonstrates that the state of Indiana can completely replace property tax without changing the state's current spending habits.

Dr. Styring's plan does not account for positive changes in Indiana's economy that will undoubtedly follow the elimination of property tax such as heavy real estate investment and increased consumer spending due to increased statewide disposable income. The real estate investment in Indiana alone would cause such an economic boom that it could likely end our abandoned property and foreclosure crisis. Property tax elimination would also likely cause a surge in Indiana's population as more people locate to Indiana to take advantage of real estate purchase opportunities without the burden of property tax. With the population surge would come more sales and income taxes.

The General Assembly does not have to adopt a specific plan until the year 2011. In the meantime, we recommend that the General Assembly approves the 27steps outlined in the report prepared by the Sheperd Kernan commission. While the Governor's commission cannot forecast the savings to the state once the plan is implemented, there is no doubt that the savings would be substantial--perhaps equivalent to the the entire property tax burden currently placed on Indiana's homeowners because our legislators have not had the political will to liberate Indiana's governing structure and her taxpayers from the 19th century.

Our citizen networks will work to replace all legislators who do not support property tax repeal in the November 2008 election.

The 2/2/2 Plan, to replace property taxes in Indiana based upon the latest revenue forecast (07/08 fiscal, estimate):

1) Current IN sales tax (state level rate of 6%): $5.601 billion2% increase would yield an additional $1.867 billion

2) Current corporate profits tax: ~$2 billion

2% increase would yield an additional $.286 billion ($286M)

3) A 2% statewide average of the COIT would yield $2.705 billion to cover local civil units of gov.

By adding these three together ($1.867 billion + $.286 billion + $2.705 billion), a total of $4.858 billion is realized; enough revenue to replace property taxes.

PROPERTY TAX HISTORY PREPARED BY DR. BILL STYRING
Indiana has a 70-plus year history of attempts to lower property taxes by raising other, non-property taxes. In every case these have failed miserably. The new taxes, or higher rates on old taxes, remain in place. And, in short order, property taxes rise back to their old levels, poised to roar even higher.

--1933. General Assembly imposes two new taxes: an individual gross income tax and a corporate gross income tax. The morgue of the Indianapolis Star indicates that the political leadership at the time said this was for property tax relief (1933 was the pits of the Great Depression, and people were losing their homes. Home prices declined by over 40% in the 1929-1933 period). Property tax relief was nonexistent. The state used the money to bail out the state's own finances.

--1963. General Assembly imposes a new sales tax at a rate of 2% and changes the 1933 individual gross income tax (from 1933) to an adjusted gross income tax (the one we have now) at a rate of 2%. Again, the ostensible reason was for property tax relief and again little PTR was forthcoming.

--1967. Those 1963 tax changes were raising more money than projected. The GA decides to give back 8% of sales and income tax revenue to local government for property tax relief. Local units spent the money. No PTR.

--1973. Gov. Otis Bowen launches the most determined PTR offensive yet. The sales tax goes to 4% and a new corporate supplemental net income (profits) tax is imposed. Strict property tax levy controls are imposed. It works... for a time. By 1980, property taxes adjusted for inflation are some 30% lower than in 1973. When Bowen leaves office the levy controls are relaxed. By the end of the decade, property taxes (adjusted for inflation) are back to 1973 levels. The doubling of the sales tax rate from 2% to 4% remains in place, along with the new corporate SNIT.

--2002. More fiddling with the sales tax in the hope of property tax relief. The results of this are obvious, or we wouldn't be debating the current property tax mess. All of this suggests that unless the property tax is totally ripped up by constitutional amendment, the assessment and collection mechanism dismantled, it will grow back. The PTR-inspired hikes in other taxes remain. That is our history. It is a terrible deal for taxpayers.

2. A vote in the 2008 legislative session for a constitutional amendment to repeal property taxes does not amend the constitution. It merely starts the amendment process. Amendments must be passed by two consecutively elected General Assemblies, then submitted to a referendum. Thus any amendment passed by the '08 Assembly must be passed by either the 2009 or 2010 legislatures, then submitted to the voters at the 2010 general election. The General Assembly does not need to decide on a "replacement revenue" package until the 2011 session.

3. What might such a "replacement revenue" package look like? The particular answer will come from the 2011 General Assembly and cannot be determined now (if for no other reason than forecasting state level taxes and property taxes out that far would be a most unreliable exercise. No one need be locked into any particular plan just yet. However, as an illustration that a replacement plan is feasible and less scary than many fear (we don't need to be talking about a 12% or 13% sales tax ... in fact, we should not be), consider just this one possibility.

Local sales taxes are generally very bad policy, for a whole host of reasons too numerous to mention in this short sketch. Sales and corporate taxes are best levied at the state level. It happens that roughly a 2% increase in the sales tax and a 2% increase in the corporate profits tax roughly take care of school propertytaxes. The loss of local control by the state assuming school property taxes is minimal. About the onlylocal control left is on building projects.

For local civil units, a statewide average increase in the individual adjusted gross income tax of about 2% suffices to replace local civil government property taxes, higher than 2% in some units, less than 2% in others.

Thus, a "2-2-2" plan~2% sales and 2% corporate profits at the state level for schools and a 2% average on personal income taxes for civil units—is about what would be needed. This is merely a ballpark projection to 2011.

There may be better plans, it's really a policy question for the General Assembly: do you want to make the trade of something like this in exchange for no-property-taxes-forever-on-anything? Everyone understands "zero."

4. Are there "practical problems? Of course. The two identified are how to make the civil government transition from a property tax base to an income tax base, and how to handle debt backed by property taxes. Without elaborating, the former can be handled using locator software (Map quest-type programs). The debt problem might be handled by treating the current state paid PTRC's as in lieu of property taxes (which they are) and paying PT-backed debt service from each unit's own PTRC.

Conclusion: Total elimination of the property tax via constitutional amendment is the only way to give property tax relief that will stick. The other tax action necessary to achieve this goal—in 2011-are large but not so scary as "a 13% sales tax." They are feasible. The question is for the General Assembly. Are we going to once again go down that 70-odd year path of failed PTR policies or are we going to rip the property tax up by the roots?

Posted by Hoosiers For Fair Taxation on Friday, January 4, 2008.