8/1/2004

Economic Development - Not My/Our Vision In case anyone was wondering what kind of brainstorming goes on in Libertarian Party circles, let me share with you a post from this morning in our LP of NC e-mail group: -----Original Message----- From: Christopher Cole [mailto:tarheel@glay.org] Sent: Sunday, August 01, 2004 10:58 AM To: lp-meck@niof.net; lpnc@yahoogroups.com; lpnccandidates@yahoogroups.com Subject: [LPNC] LTE Regarding TIFs Hi, friends, Governor Jim Martin will be in the Charlotte area, speaking at the Lake Norman Chamber of Commerce in support of Amendment One. The Lake Norman Times interviewed me as a candidate on my opposition to TIFs. That article is scheduled to appear Wednesday. And the editor of the Huntersville Herald asked me to submit a letter-to-the-editor on the subject. He specifically stated that he wanted an opposed view, since the officials of local governments are supporting the amendment. Below is the letter I've submitted. It includes some of the websites provided by our elected Libertarian councilman in Lenoir TJ Rohr (thanks for the resources!). Chris To the editor: If our legislature recommended a constitutional amendment to expand state debt or to promote corporate welfare, such a proposal would probably die before it even reached the ballot box. That is why they chose to seek the same ends, while simply calling it Amendment One. Completely innocuous. Nonthreatening. Bland. And deceptive. This is what is being promoted by former Gov. Jim Martin at the Lake Norman Chamber of commerce. That is why I urge Tarheel citizens to vote against the amendment to our state constitution to allow "tax increment financing", or TIFs. TIFs are bonds that would not require voter approval. They are used in several states to finance economic development, with the bonds paid from the resulting property taxes, rather than as a general obligation of the issuing government unit. My objections fall into two categories. The first is the expansion of corporate welfare. Not only would new businesses demand TIFs to finance their investments, but they would also hold the public budget hostage to their continuing success. This proposal will put a corporate gun to local officials: "Give us subsidies, or we'll stick you with useless bonds". Why should taxpayers underwrite corporate expansion and profits? Not only will that be a disaster for local government, but it will make inefficient businesses into parasites on productive companies. The second is the inevitable tax increases hidden behind supposed limited debt. As some of the subsidized businesses fail, the property tax income will dry up, leaving the TIFs as a general obligation on the local budget. In addition, the tax burden on neighbors of such businesses will necessarily increase, as the usage increases on roads, police, fire, and other public services. Those expenses would normally be covered by the new tax revenue, which will now be diverted to debt service. That means that the neighbors of TIF businesses will have to pay MORE taxes to sustain the same level of public services. I say, let's let businesses bear their own risks, and let them contribute to the tax base just like their neighbors. Let me refer readers to two websites. Http://tinyurl.com/25c8k will take you to a John Locke Foundation review of Gov. Martin's presentation. Http://tinyurl.com/2oh4w will take you to an analysis of the use of TIFs in Iowa, demonstrating their high expense-to-benefit ratio. Sincerely, Christopher Cole Chairman, Libertarian Party of Mecklenburg County Libertarian Candidate, NC Lt-Governor   9:51:46 PM      comment []

Economic Development - My Vision Bermuda, Cayman Islands what do most people think when they hear those words?  I bet it is not baseball stadiums and economic development grants.  No, maybe scuba diving and beaches.  For those with a little business background though the first thought that probably comes to mind is this: "Tax havens." I am wondering how many people in Guilford County's 7 District would like it if when their friends and relatives thought about them they thought, "Oh, you live in that tax haven...man aren't you lucky.  I need to figure out how to move there." Blue sky perhaps, but my neighbor asked me what my vision as a candidate was for Guilford County and I simply said, "Tax Haven."  Wouldn't it be something worth talking about if Guilford County became the Bermuda within reach for an average American and less than multi-national business owner? Is something like this realistic?  I say yes if everyone is willing to give up their favorite taxpayer subsidized perk.  Can we live with $10 million dollar elementary schools instead of $14 million dollar ones?  Can we just lower business property taxes for everyone instead of giving away money to whoever askes/threatens strongly enough? Can we eliminate the budget death by a thousand cuts from everyone's pet humanitarian effort with other peoples' money?  With a fresh perspective on the County Commission and an electorate willing to live within their means, instead of someone else's, it might be possible.  I think it is worth trying.  That's why I am a candidate. 9:45:38 PM      comment []

No Credit, Bad Credit, No Problem --- Everybody Rides That was the sign at a car dealer lot on Wendover a few months back.  It is also an accurate description of how too many people view our system of governance; from the first level of self-governance right on up the ladder  (if you're a Democrat, Republican, fascist, commie or progressive -- right on down if you're a Libertarian or like-minded independent.) I think I am close to calling a truce for a Hogg Blog hosted debate on funding for the City (not County) Coliseum.  Here is the bottom line though in my worldview: Using city taxpayer dollars for the Coliseum is just a form of corporate welfare and it should be stopped just as certainly as many of the social "pet" projects funded by the Guilford County Commission.  In my candidacy, I seek to represent the taxpayers of Guilford County in the 7th district who say, "No mas." I've got my 2004 county property tax bill in front of me as I post this.  You know this is the one that includes the "revenue neutral" property revaluation that everyone in the county received.  Today, I did a quick re-review for our home: 2002 tax = $1341 2003 tax = $1409 (5.1% increase) 2004 tax = $1597 (13.3% increase) The natives (who were listening) got restless when they heard about the revaluation, then everyone got angry when it actually came in the mail and they saw how much it was.  Now, with the August payment date option upon us and checkbooks being pulled out and real live money leaving people's hands, get ready for the next step in infuriation...Please remember this sensation when you vote on November 2nd and stop pushing the  D and R buttons.  It is costing us all real money. 8:41:02 PM      comment []

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