No on sales tax


Published on Thursday, September 17, 2009 7:20 PM AKDT

To the editor:

I recently received a letter of solicitation in support of the proposed sales tax. The group that sent it stated my current tax assessment values. The letter indicated I would save $2,761.74 each year by the reduction I would receive in property taxes if the current sales tax proposal passes. They had done some homework. I’m all for reducing taxes, so I did a little calculation. As it turns out, their homework needed correcting. I would be paying at least $4,500 more per year under this proposal.

One cannot afford to just pay taxes on property for very long without it producing revenue, or one becomes a slave to the property; hence, I have turned my lot into income-producing property. The rent I receive from the property would be subject to about three times more in sales taxes than the offered reduction in property tax. I figured the sales tax bill would be around $7,200 per year and I also get to be an unpaid tax collector for the borough. This sales tax isn’t just on my profits, it’s on gross revenues. It comes right off the top. That amount doesn’t include the additional costs for local goods and services that I purchase. So, how is it that my taxes are going to go down? 

Have you ever heard of a government that asked for less money next year? They can never control their spending no matter who is in office, so once they get an additional income stream, it will never go away, they’ll just find something else to waste it on. It will not end; we’ll just have two ways they can steal from us with the force of law. The way I see it, almost all taxes are a way to confiscate the fruits of our labors to provide benefits for someone else. I don’t want to give the borough more money, in fact, I want borough government reduced and its power to tax diminished. We, the voters, should be the ones deciding how much they can spend, not the other way around.

Although I think it’s immoral to confiscate one’s property for taxes, sales tax also has moral problems in that it often targets those who get no vote. The only way I would support a sales tax is if it: 1) completely eliminates property tax, 2) it offers exemptions for those who don’t live here, and 3) the rate cannot be changed except by super majority of voters in a regular election. I strongly oppose this current proposal.

Pat Marley

Wasilla

 

Comments

41 comment(s)

    Brian wrote on Oct 1, 2009 4:57 PM:

    " I also got the flyer that was mailed all over the Borough. That costs some serious money. Who is funding this thing and why are they so determined to shove this down our throats after it has been voted down again and again? "

    Brian wrote on Oct 1, 2009 4:49 PM:

    " Where I came from they voted in a 3% sales tax. Gradually they have been able to up it, mainly a quarter of a percent at a time until it is now over 8'%. This is a sucker's bet and they schedule these on off election years hoping for a low voter turnout. Don't let them get away with this and yes, VOTE EVERY INCUMBENT OUT! "

    jp wrote on Sep 30, 2009 5:02 PM:

    " if you people re-elect Michelle Church, you are idiots that deserve the fate that she will deliver!!!

    Vote all the incumbants out, clean slete the place, the only hope we have of positive change. "

    say what wrote on Sep 28, 2009 9:25 AM:

    " Yes on sales tax! Lower the property tax (then, of course, begin the process of slowly raising it back up again!) Then, to really "help" us all out, let's up the sales tax, create a vehicle excise tax, coffee tax, sin tax, telephone tax, oxygen-usage tax, toilet-paper tax etc etc! Soon we can all live in socialist/liberal heaven where we give the government everything and they will, of course, "take care" of all our needs!

    GAG! "

    Hmmmm... wrote on Sep 26, 2009 11:00 AM:

    " Maybe income properties, such as Marley's, should pay a higher percentage of property tax than folks who merely live on their property. The higher the income from the property (such as Wal-Mart and other big bisinesses), the higher the property tax!

    I used to be PRO sales tax, until I crunched the numbers and realized that I would actually be paying A LOT MORE if we chose a sale tax system. "

    Oops wrote on Sep 26, 2009 7:03 AM:

    " Dennis Oakland - I bet your mother blames your birth on Obama also.........get a life! "

    Dennis O. wrote on Sep 25, 2009 3:12 PM:

    " Reasonable people will see the wisdom in voting yes for the sales tax. Plain and simple, it is not fair that property owners are disproportionately burdened with footing the bill for borough services enjoyed by all.

    Beware the agenda of those voicing knee-jerk opposition! "

    More tax and spend wrote on Sep 25, 2009 10:57 AM:

    " We do need a sales tax but not this one. It is poorly written. The sales tax must be used only to pay for school costs, about 75% of the borough budget. Maybe more people would be interested in school board containing costs. The current sales tax proposal is flawed and just more tax with no tax relief. "

    Dennis Oakland wrote on Sep 25, 2009 7:38 AM:

    " I see the spineless weasel is back using my name illegally again. The identity thief is obvoiusly a Marxist Obama supporter and has no ability to think, or act under his own identity.

    We already have a tax cap. The Borough can only collect "X" amount per year under the current formula. The sales tax and an arbitrary mil rate cap would "set" the amount of revenue collected each year and would nulllify the current tax cap. Don't let that happen.
    Vote NO ! "

    Jim Jones wrote on Sep 24, 2009 10:49 PM:

    " Hey, Pat, don't ya know they just want you to shut up and drink the cool aide??? "

    jp wrote on Sep 24, 2009 5:58 PM:

    " vote this tax down, and let them re-write one that will not be open ended or be able to be changed at a whim of the assembly.
    if this is voted in, we will all pay more, and more and more. "

    Dennis O. wrote on Sep 24, 2009 2:07 PM:

    " A sales tax, with appropriate cap on property tax, is long overdue here. It's time for more than just property owners to foot the bill for services the borough supplies. "

    pay attention. wrote on Sep 24, 2009 1:48 PM:

    " what i said is this.

    1. eliminate property taxes. they no longer exist. i do not care who owns the land, the house, or where they reside.

    2. Salex tax on EVERYTHING. I do not wan any exemptions...that keeps it fair to all as well.

    Now there would be a cap- for instance $1000.00.

    I do not expect someone to pay a 9% sales tax on a $30,000 truck...

    NO PROPERTY TAXES. EVER.

    (you never really own your land...think about it.) "

    Eliminate property tax wrote on Sep 24, 2009 9:07 AM:

    " If you "completely eliminate property tax" you would not have to give "exemptions for those who don't live here" They would already have zero property tax.

    Or Do you mean exemption from sales tax for those who don't live here? If so, that's a horrible idea. "

    Vote Yes on Prop 1 wrote on Sep 23, 2009 12:38 PM:

    " The real issue why isnt anyone in the cities sqwaking about sales tax that is collected now and EVERYONE pays so that THEY have services for but its not good enough for the majority of the MSB residents to reep any benefits by collecting MSB wide. When did it start being all about you? "

    Oops wrote on Sep 23, 2009 5:43 AM:

    " I'm willing to pay taxes just to keep kids in school and not educated by some of these bloggers. God help their children! "

    To MP wrote on Sep 23, 2009 12:01 AM:

    " Sorry you don't have kids...they would have made you a nicer person me thinks!

    I'll vote NO on sales tax! Anyone with a brain knows that there is no reason to push for one tax in order to decrease another tax. If you believe that line the Borough Assembly has a couple of bridges for sale too... "

    MP clarifies and wrote on Sep 22, 2009 5:41 PM:

    " To Renter and Marley: I have no beef with renters. They have a vote!! My true complaint is that people who choose to have children should have to contribute more (somehow) than ME, with no children. A tax on goods purchased for those kids would help. The occupant of a fourplex pays 25% of the property tax for that building. I pay 100% for my house. In both cases 75% goes to schools/education. Ergo, I pay more, and for other people's kids. That Stinks and is NOT FAIR. "

    To renter from Moral Problems wrote on Sep 22, 2009 4:20 PM:

    " How nice of you to single me out. Reread my piece. I said tenants with children pay "Way Less" than I do. I never said property tax is not included in your rent. It's a small part of rents, and rent does not increase just because taxes do. Thank you letting me clear that up. And since I have no children, every penny I pay is "matching funds" for someone, probably you. "

    to renter wrote on Sep 22, 2009 1:03 PM:

    " you are right- you do contribute! and the property owner knows it.

    BUT!

    If he stops paying the over-inflated tax on the over-inflated borough assessment, the the borough TAKES THE PROPERTY!

    How unAmerican is that?

    Eliminate property taxes altogether. I will pay a sales tax like everyone else, but NOT BOTH!

    Keep in mind a few things, taxpayers:

    1. The borough does not have police.
    2. The borough does not have paid fire crews.

    where does all the money go??

    SALARIES to assess and tax! "

    re Tax Moral Problems wrote on Sep 22, 2009 9:57 AM:

    " I'm one of those KGB renters. If you think my landlord isn't paying his property tax with my rent then one of two things is true:

    1) You're not very bright, or

    2) My landlord isn't very bright.

    I know my landlord, so I'm betting on the former. "

    Voting No on Prop 1 wrote on Sep 21, 2009 10:41 PM:

    " Question: Why would the borough initiate a sales tax property tax combo to break even? A lot of paperwork involved there to break even.
    Answer: They never intended to break even only to make more money to spend of course. "

    Marley to If wrote on Sep 21, 2009 11:35 AM:

    " Just right of Brother John Birch! "

    If... wrote on Sep 21, 2009 9:35 AM:

    " Marley is against it, then I'm for it. I can't remember him being right about anything. "

    jp wrote on Sep 21, 2009 8:53 AM:

    " as a local business owner, if this tax gets instituted, i will have to raise prices, to cover the price of the added workload for the extra paperwork alone.

    what will it cost you really????
    I guarantee waaay more than you'll be saving on your property tax! "

    jp wrote on Sep 21, 2009 8:48 AM:

    " no fool is correct, and i totally agree.
    i own several properties and would love to see property tax axed, BUT!, we know "historically" what our government "will" do with having two pots to pick from "double the amount , after the smoke clears"
    VOTE NO ON 1
    VOTE NO ON 1 "

    Marley to yes on prop 1 wrote on Sep 21, 2009 7:38 AM:

    " You obviously didn't read my original very well, or I failed to make myself clear. Although I don't like the idea of being an unpaid tax collector, I think a sales tax would be better than property tax if it met the three criteria already stated. An addtional tax is not one of them, neither is paying more tax. I'm still against this proposal. "

    YES on Prop 1 wrote on Sep 21, 2009 6:31 AM:

    " Lets stick to the facts. The residential deduction of $20,000 is ONLY for residents not commercial. In addition to pay an $4000 in 3 percent tax you would need to spend nearly $136,000 on taxable items and that would be tricky considering you can only be taxed on purchases of a maximum of 1000.00 each . If you have the kind of money to pay to consume $136,000 in goods my guess is you can afford the taxes! "

    leon wrote on Sep 20, 2009 9:57 PM:

    " you all can keep going on but after 36 years here in the Borough it is obvious nothing will change, Property values go up with no reasoning but a over infatuated market, taxes go up with poorer services, the Borough government gets bigger with less accountability and we just keep paying more to the Fuhrer..you say a sales tax will reduce my taxes, righttt// and if it doesn't you have written where that I will be compensated?? you have excepted countability where if it doesn't? you have written under law where, it will eliminate my property tax? "

    Tax Moral Problems wrote on Sep 20, 2009 11:54 AM:

    " Good letter, right up to the line that says the "sales tax has moral problems because it targets people with no vote". Does that mean the absentee owners, or the NON-property owners? The tenants of those hundreds of rentals down KGB Road that have hundreds of children ALL can vote, but they pay WAY less toward education of their children than I do, when I have NO children. And The absentee owners SHOULD have their tax reduced instead of contributing over 75% for education. "

    no fool wrote on Sep 19, 2009 8:03 PM:

    " The simple truth of the sales tax proposal is that locals, who buy in the Borough, will pay much, much more. The largest property owners, mostly large outside corporations (think big box stores) will pay substantially less. Your Assembly is selling you a huge Borough tax increase by telling you it's property tax relief. Sure. They'll relieve you of $1000 or property tax to collect $4000 of sales taxes. The Assembly ought to be recalled. Or maybe check to see who funded their campaigns? Big outside corporations? "

    jp to I agree wrote on Sep 19, 2009 2:42 PM:

    " a government that asked for less money next year you say?????

    Hmmmm, you mean like President Obama has promised?
    He promised a tax reduction for 95% of the people, and then in his next breath said "you have to purchase health insurance, or pay a $3,800 penalty"

    So, how does this new math work????

    Never trust your government, keep them in check! "

    Question the math wrote on Sep 19, 2009 9:45 AM:

    " $7200 per year sales tax bill on that one property-that's alot of tax each month. With the cap at $1000 per service that's $600 per mo just on that one property, which would be 20 services at $1000 or more each. Just wanted to verify the math.
    I would like to see this pass & given a fair try-if it doesn't work we don't have to vote for it in 2014! "

    Yes on Prop 1 wrote on Sep 18, 2009 2:25 PM:

    " So see Mr Marley...the sales tax is something you support if you think all the "free loading non producers" should pay..thats the beauty of a sales tax, EVERYONE pays not just the property owner. At the end of the day Prop 1 is a 27% reduction in property tax from 9.98 mils to 7.3 mils. Facts are a stuborn thing. "

    Its easy wrote on Sep 18, 2009 1:25 PM:

    " Put this on the ballot:

    1. No more property taxes. Ever.

    2. Sales tax on all goods an services.

    3. Eliminate Mat Su Borough overhead. "

    Observer wrote on Sep 18, 2009 12:41 PM:

    " Thanks for a well written letter. The Sales Tax is just a ploy for larger more intrusive government. The MSB,with your tax dollars, began running ads on local radio urging residents to vote yes on the sales tax. After complaints to the APOC these ILLEGAL ads were shut down. The MSB is controlled by crooks-"YOU LIE" to the people without remorse . It is time to change our big spending Assemblypeople with fiscally responsible representatives. Vote in Arvin, Holmes and Turner all who oppose the Sales Tax. Vote out Church, Wells and the Sales Tax. Your kids will thank you. "

    Marley wrote on Sep 18, 2009 12:37 PM:

    " All taxed & accounted for legally & above board, a matter of public record thank you. I'm not hiding anything, the rub is paying for or carrying the load of free loading non-producers who never met a tax they didn't like as long as it benefits them. "

    offsoapstone wrote on Sep 18, 2009 12:24 PM:

    " I have said it before I will vote against the sales tax because it is a poorly written bill. Untill spending on the part of the school district is reined in property taxes will stay the same or go higher and higher. So please remeber that when you vote for the school board are they looking out for the childern as well as tax payers. The current board or those now are now running for the assembly get a grade of B for the childern and a F minus for the tax payer Vote Well "

    Big Lake 13 wrote on Sep 18, 2009 9:29 AM:

    " The property tax cap is only for the Borough Area-Wide tax. This does not include a CAP on Non-Area Wide, Fire Service, Road Service Area, Flood Control Area or Water-Sewer Districts. Read the bill and be informed. This calls for Sales Tax on Food, Telephone, Electricity, Rent, Gas in other words anything that you purchase. Although it has a Sunset date have you ever saw a tax that is not needed in the future? Next year what will your property value be? Most common comment at public hearing from assembly members "When property assesments go up" "

    I agree wrote on Sep 18, 2009 7:50 AM:

    " "Have you ever heard of a government that asked for less money next year? They can never control their spending no matter who is in office, so once they get an additional income stream, it will never go away, they’ll just find something else to waste it on. It will not end; we’ll just have two ways they can steal from us with the force of law."

    The heart of it all is right there. "

    Yes on Prop 1 wrote on Sep 18, 2009 6:49 AM:

    " Numbers are a convenient thing but revealing as well. What are the chances that Marley's "income producing lot" he is worried about payiing sales tax is now paying any income taxes in earnings or is it just cash in his pocket? What a deal! Problem this property owner has is a philosophical one of not paying taxes period on any level which is not only not practical but unfair to his neighbors. Sales tax is easy to collect and hard to hide from. There is the rub for Mr Marley "

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