SULLIVAN'S SALVOS
October 10, 2014
Sullivan’s
Salvos 10/14/14
In this edition:
*Public Private Partnership (Follow Up)
*Conservatives, Liberals, and Property Taxes
*Courthouse Tours
*”Divide” By Matt Taibbi
*Did You Know?
*Public Private Partnership (Follow Up)
I
wrote last week about a proposed public-private partnership for land owned by
Johnson County.
The Board voted no on the
proposed public-private partnership. The vote was 3-2, with Neuzil, Harney, and
Rettig voting no, Sullivan and Etheredge voting yes.
So this vote means we
aren’t even going to ask for ideas. This Board decided it does not need to
request input. Now we miss out on:
1.) An immediate
savings in to taxpayers in terms of lower building costs;
2.) Increased
residential property taxes, a long-term benefit to taxpayers;
3.) An opportunity to
put a significant amount of affordable housing near downtown;
4.) An opportunity to
grow up rather than out, thereby reducing urban sprawl.
I think this is the
single most disappointing vote in my ten years on the Board.
*Conservatives, Liberals, and Property
Taxes
Supervisors received a letter recently that really has me
thinking. I have spoken to all sorts of people about it, and I have gotten all
different types of feedback.
Here
is the situation: a retired gentleman has $1200 monthly income from Social
Security, and a $600 monthly pension. He wrote to complain that he cannot
afford his $4000 annual property tax bill, and requested relief from the
county.
Without
naming names, I mentioned this situation to two friends that I’ll label as
“conservative”. One of them said, “Tough luck. If you cannot afford your taxes,
move.” The other chose to focus on local governments, and said, “See? Taxes are
just too high!”
Then
I spoke to three people that I will label as “liberal”. One suggested granting
him tax relief. Another thought we should change the property tax system. The
third said he should look into a reverse mortgage.
I
can see pros and cons in each of these arguments. While my friend who said,
“move” was not exactly a model of compassion, I have to believe she was right.
A person with a $4000 annual tax bill must have a $200,000 home. Perhaps our
letter writer should sell his $200,000 house, and purchase a $100,000 condo.
Perhaps he should sell, then rent a place. Whatever the case, while his income
is low, he has a significant asset that many people lack.
As
for property taxes being too high… I have written at length about this. I
happen to believe local property tax rates are quite fair. One irony is that
this person’s residential property taxes undoubtedly increased as a direct
result of Iowa’s commercial property tax cut – something conservatives pushed.
Of
my two “conservative” friends, I tend to agree more with the first. A common
theme among conservatives is personal responsibility, and frankly, personal
responsibility is a difficult thing with which to argue. Greater personal
responsibility would obviously be a good thing. And it seems to fit in this
case.
My
“liberal” friend who wanted to go straight to tax relief really frustrated me.
We do not just waive taxes. Taxation simply MUST be fair, or there will not be
faith in the system. If we waived taxes for this guy, shouldn’t we also waive
them for everyone who makes less? And if we did so, how could we possibly
afford to provide all the necessary governmental services?
The
second “liberal” had a complex solution to the problem: lower property tax
rates for retirees, and raise them on everyone else. I’ll be frank – I HATE
this idea! First, it would require State action. Secondly, it is complex and
confusing. But most importantly - I spoke earlier about the importance of taxes
being “fair”. I believe fairness is critical. Every $200,000 residential
property in Johnson County should be assessed at $200,000, and every $200,000
residential property should pay the same amount in taxes. It should be based on
the property – NOT who lives in the property.
I
believe this is an increasingly large problem with our income taxes; income
should be taxed at the same rate, regardless of the source. While it feels good
to cut taxes for veterans, seniors, etc. – we should all pay the same tax rates.
$50,000 in salary should be taxed at the same rate as $50,000 in pension, which
should be taxed at the same rate as $50,000 in investment income. Income is
income. Tax it the same. We have gotten away from this, and it has become a
huge problem. I do not want to see property taxes go the same direction.
I like the approach of the third “liberal”. Let’s try to solve the
problem. A reverse mortgage may be the right answer. Perhaps the letter writer
could take in a renter. Different housing is certainly an option. Maybe he
would be interested in working part time. A financial planner might be able to
help him budget his money better. There are lots of potential solutions here
besides waiving taxes – let’s consider them. Why is the rush straight to
Johnson County? Did he ask MidAmerican to lower his gas and electric rates?
I
found it quite interesting that 5 different friends had 5 different responses
to this letter. I’m not even certain that is a “conservative” or “liberal” way
in which to view the issue. I just know that I have very strong opinions on tax
policy. So, I’m curious: what are YOUR thoughts?
*Courthouse Tours
As
you know, Johnson County residents are being asked to vote on a courthouse
annex. In preparation, the Clerk of Court and County Attorney are offering
tours of the existing facility.
Tours are
open to any interested person, but you must first register at www.johnson-county.com. Tours are on Wednesdays at 4:00 pm on October 1,
8, 15, 22 and 29.
I
urge you take a tour; more importantly, please vote!
*Divide By Matt Taibbi
I
recently finished a new book entitled “Divide” by Matt Taibbi. You may know
Taibbi from his work in Rolling Stone; he is well known for calling it like he
sees it.
The
story behind Divide is quite simple. In present day America, there are two
systems of justice: one for the poor, whose poverty is punished; and one for
the rich, whose wealth is rewarded.
Taibbi
contrasts stories of poor people done wrong by the system, and huge
multinational companies whose crimes go unpunished. More importantly, he points
out how these results are becoming institutionalized within our bureaucracies.
Unless we act now and act dramatically, a two-tiered system of justice is here
to stay.
Divide
by Matt Taibbi is available at local libraries and bookstores. Check it out!
*DID YOU KNOW?
The current courthouse was completed in 1901, when the population of
Johnson County was about 25,000.
Anyone
interested in learning more about County government should take a look at the
County website-
"Sullivan’s
Salvos" is sent once per week to any interested party. It will give a
brief update on issues of interest to Johnson County residents.
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serving you!
---Rod
posted by Rod Sullivan @ 3:11 PM
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