TAX NEWS - June 2010

Forthright tax talk

In Liberty on Tuesday night, a public hearing gets under way by the Union County Council to debate raising the rate for a current wheel tax that would provide an added projected $225,000 for road repairs.

In neighboring Wayne County, where county officials have borrowed $4 million from special funds to meet expenses, talk of raising any taxes or fees is apparently off the table.

Audiences enjoy hearing a chorus sing in harmony. That same standard should not apply to those they elect to public boards; not all the time and certainly not where issues run deep and complex and deserve a more thorough public vetting.

Wayne County's financial situation is one of those issues.

County officials insist they can make the rather steep spending cuts to shore up accounts, repay their recent loan transfer and even maintain a Rainy Day Fund.

They should waste no time doing so.

But in looking at long-term replacement for capped property tax funds, they should also keep an open mind and encourage an even more open discussion of assorted options.

Wayne County Council member Chris Beeson might be virtually alone in allowing that a wheel tax is "something we may have to look at some day." But he insists that this is not the time to do so, presumably due to the weak economy.

On its face, that's a hard position to argue against. It is precisely because so many taxpayers have been hurt by this economy that all government officials, from the city hall or county buildings to the statehouse to Congress, need to be looking at ways to roll back spending.

But if a designated road fund or a bridge fund needs to be replenished, why not a targeted fee rather than a general tax levy to achieve it?

Vehicles damage roads and bridges and heavier vehicles with more wheels damage them proportionately more. The user-fees math makes sense for user functions like road maintenance and repair.

For incumbent officeholders or those seeking first-time office, this might not seem the time to talk taxes with so much at stake in a fall election.

To the contrary, we say: This is precisely the time for a principled discussion on how all of us, and not just those we elect, intend to deal with long-term issues that, frankly, are not going to disappear if they are not resolved.