Letters to the Editor

Hidden tax

May 20, 2010


To the editor:

Regardless of how it is presented to the public, the 1 to 2 percent “sales tax” that will be added to the sales tax charged by state and local governments is a hidden increase to the price charged for goods and services. This should not be allowed. The true price is not shown to the buyer. A competitive advantage is given to these businesses. State and local governments are deprived of sales tax revenue on the 1 to 2 percent. This lost revenue will have to be made up for by the rest of us and can be a significant amount.


Richard Heckler 4 years, 10 months ago

"We pay billions of dollars in taxes that never get to the government." Much of the sales tax we pay at big box stores and shopping centers is diverted to the large companies that own the stores. It's just one of the many swindles these chains have learned to perpetrate against city and county governments. This is so effective that the Cabela family, which owns a chain of big-box sporting goods stores, receives 137% of its profits from taxpayer subsidies. If they couldn't work this scam, they wouldn't be in business at all."

Think about this while shopping at Legends. How much are consumers truly paying? Where are the taxes going?

Other food for thought: The heart of the wealth transfer is tax increment financing (TIF). Developers come to town leaders and offer to build a new store that, they promise, will "create jobs." In exchange, the city gives them the land, builds the store to their specifications, and finances it all with tax-free municipal bonds (which are usually held by associates of the store owners). To cap it all, the store keeps the sales tax generated in the store to pay off the bond holders. If the store is built on government land, it's also exempt from paying any property taxes."

Why do city governments take such a blatantly bad deal?

Free Lunch for Develpoers http://www.democracynow.org/2008/1/18/free_lunch_how_the_wealthiest_americans

Brent Garner 4 years, 10 months ago

I cannot believe that the city is putting in place a "tax", which is not a tax, for these businesses. Why do these businesses get, as Merrill asserts, a subsidy and competitors do not? What right does government have to pick the winners and losers? Why should we, the citizens, be expected to pay for this?

jafs 4 years, 10 months ago

That will be much easier if the commission includes a requirement for businesses using it to publicly notify their customers.

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