Elizabethtown, KY--April 12, 2007
A tax is a tax, and a bad idea is a bad idea. And two-thirds of a bad tax idea is still a bad tax idea. Those who oppose a restaurant tax of any amount need to let city councilmen know right now, before Monday the 16th of April.
It is very likely the city council will be approached by the ETCB with a proposal for a 2% restaurant tax, now that the 3% proposal has been turned down by the city council. This could happen as soon as Monday, April 16th.
No matter what percentage of tax is proposed by the ETCB, the tax is still a bad idea for the same reasons as the 3% proposal was:
* Our citizens already pay one-third (four months of work) of their income in taxes as it is. No new tax should be added to this load.
* The tax is not needed, because the projects earmarked for the tax are already budgeted with current revenues.
*Local diners will pay 77% of all taxes collected by a restaurant tax. This figure is based on National Restaurant Association statistics that show local diners purchase 77% of all meals purchased in local restaurants.
* The tax would still take thousand of dollars from each local family ($18 million total from the local area at even the 2% rate) over the next twenty-five years; money that is needed for food, shelter, clothing, schooling and the other essentials of life. This is money that will also be taken out of the local economy, making it unavailable to the other businesses in our area. (Will what few tournaments that might be held really produce $18 million in revenue, not to mention the interest on bonds that will add $13 million more in debt repayment? No, they wouldn't even scratch that amount.)
*Citizens employed in Elizabethtown had their occupational tax raised 69% just last year.
* The county school board raised its tax just last year.
*Our citizens are already coping with rising gasoline/heating prices and skyrocketing health care costs.
* The tax will hit lower income families--including children, the disabled and the elderly--the hardest because they have limited incomes to begin with.
*The city could change its classification from a fourth-class city to a second-class city, allowing the county to add another 2% to the local room tax that the ETCB could use for local projects if they so chose.
* If the city passes this tax for these projects, it will only be a matter of time before someone else in or out of the council will identify another "dire need" that they say will require another another new tax, or a raise in this one.
* The council needs to put a stop to the "tax parade" right now by turning down any new tax proposal, including any restaurant tax of any amount. Then the council should concentrate on improving city efficiency and cutting any and all fluff out of the city budget.
Two-thirds of a bad tax idea is still a bad idea. Act now to prevent the tax from being passed at any rate.