Now not the time to raise taxes

Over the years I have written in support of most of the major economic development initiatives in Lawrence and Douglas County. Certainly, I support investing in the future of our city and county. But I’m also someone who thinks that politicians and government officials need to exercise reasonable caution and good judgment when it comes to increasing taxes.

The late Oliver Wendell Homes, Jr. once remarked that “taxes are the price we pay for civilization.” I think that he was right. Each of us benefits from having good government and the services only government can provide. But those who would increase taxes also need to be realists.

Thus, it is not at all difficult for me to say that I find the current proposal to increase county taxes by more than 16 percent, an increase unprecedented in recent history, to be unreasonable, insensitive to the economic difficulties of many county residents, and, in all probability, just a bit nuts.

Why do I use such strong terms? Let’s examine the proposed uses for the approximately $1 million that would be raised by the tax increase. The County Commission says that the money is needed, first and foremost, to create new jobs in Douglas County. No one can dispute that job creation is a good thing. But, in fact, the commission wants to use a portion of this money to grant subsidies to corporations, particularly bioscience companies and a few others, such as Berry Plastics to help them construct a new facility in northwest Lawrence, not with an assurance of new jobs and increased economic prosperity, but in the hope that such things may occur in the future.

In a good economy such economic development subsidies would make sense. But at a time of economic crisis, can the average homeowner in Douglas County afford these? I’m sure that every person in our county would like to increase their personal savings and investments. But for most folks right now, it’s hard enough to make ends meet at all on a day-to-day basis.

If individuals cannot afford to make investments for the future right now, is it right now for the county to tax them so as to subsidize for-profit corporations as an investment in the county’s future. Is there no alternative to outright grants and subsidies. How about long-term loans?

A second use for the money proposed by the commissioners is for preservation of “farm fields, historic sites and other culturally sensitive areas.” Great idea if you can afford this. Right now, a fair number of people can barely afford to pay for the necessities. How many county residents will have to forego medical care or mortgage payments to protect our farm fields or cultural sites? Does any government official truly believe that the hardship this tax increase will cause to many families is justified by such activities this year?

And then, of course, is my favorite reason: “to bankroll community objectives that have languished for more than a decade.” Now who on earth would think that the best time to “bankroll” projects, which have been left unfunded during prosperous years, is during the worst recession since the Depression and when many economic indicators, including joblessness data, suggest that we’re not out of the economic woods yet?

I realize that the current administration in Washington says that the recession is ending. I’m doubtful, but I hope they’re right. But to impose a vast new tax burden on already financially challenged people in this county in the hope that Washington bureaucrats are correct just sends shivers down my spine.

I think it’s time for the County Commission to get a bit more in touch with reality. Times are bad. People are suffering. Now is not the time to raise taxes, even for the best of reasons and, so far, the reasons being put forward aren’t the best. If the commission really thinks these projects are so important, then let’s put the tax increases needed to fund them to the voters. Let the people of Douglas County decide if they think we need to do these things now. I doubt that the commission is willing to do this because I’m sure that they know what the vote would be. If the County Commission imposes a large tax increase now, not for necessary county activities, but for future investment and cultural improvement, then it’s time to vote them out of office.

— Mike Hoeflich, a distinguished professor in the Kansas University School of Law, writes a regular column for the Journal-World. http://www2.ljworld.com/weblogs/grumpy-professor/