Taxes don’t determine fairness

The editorial in the 7/28 edition, “Borough sales tax has no chance” was interesting and timely. We agree with your conclusion in Item 5 of the editorial. The concept of providing the borough with the power to levy both a sales tax and a property tax (even with a “cap”) has been tried before and failed. Public trust in government fiscal responsibility is at an all time low and we will oppose any change which provides a different taxing mechanism unless further measures, such as completely eliminating property taxes, are included to preclude the borough having “two bites at the apple.” However, we would like to offer a few observations regarding your discussions in Items 2, 3 and 4.

Item 2. You note that existing sales tax rates in Palmer, Wasilla and Houston are different and express the sentiment that this is “patently unfair.” You seem to ignore that there could be rational reasons for the differences such as different levels and kinds of services that the respective residents expected when they voted to establish the municipality and the tax rates to pay for it. There could also be different management practices and personnel cost which make for efficiencies in the services. Also, you suggest that taxes need to be raised in Wasilla and Houston to match those in Palmer so that it is “fair.” Why must taxes always have to raised instead of lowering them if equity is really a legitimate issue?

Item 3. Those of us that live outside the three towns base buying decisions on many factors such as convenience, selection, previous service, initial cost, customer loyalty, etc. Tax differences are a very minor consideration in our purchasing decisions.

Item 4. You state that people who don’t live in the towns can use the facilities, such as paved streets, sewer and water, snow removal, etc. and don’t have to pay “a dime toward the bills.” That is just wrong. Yes, we do use some of the facilities. We use the roads to drive to the businesses where we purchase the myriad necessities and services required by the normal life style. We use the water and restrooms while dining at local restaurants. All these activities involve paying the appropriate sales taxes which go “toward the bills.”

John and Judy Raynor

Wasilla