Taxing proposals: Let’s pay the bills, then bury the tax

By ROBERT C. AUGUSTINE
Guest Columnist

Monday, June 6, 2011, 9 a.m. — Regarding any tax increase, I share with many the worry that these increases tend to only grow over the span of time because government tends to continue spending everything it consumes. In order to keep good faith and calm fears, the City Council could simply attach a “sunset” clause that would roll the proposed tax increase back to the current level in two years. 

If the city decides it still needs the increased revenue after the tax increase expires, let the reasoning be explained, let’s study the budget, and have the debate again in two years.

The City of Bardstown is requiring more revenue (code word: tax increase) to cover a debt problem apparently spurred by a few unpaid infrastructure projects.

In a recent Open Meeting, Mayor Sheckles explained that we had been delaying paying for projects and that an increase in service fees and occupational taxes are inevitable if we are to continue growing as a community.

I agree and applaud his political bravery. As a fiscal conservative, I believe we must pay as we go. If we have outstanding debts, let’s get them paid. If we need to repair our crumbling roads, let’s repave them. If the removal of the $75,000 cap and/or a half percent increase on our occupational taxes will balance our budget, let’s get it done now.

We aren’t debating government shutdowns, debt ceilings, and Bush tax cuts. This isn’t Washington DC political banter; it’s Bardstown, Kentucky problem solving. This is the exact level of government that should be the most open, honest, most responsive, and most fiscally responsible.

That said, we still have a duty to hold each level of government responsible and perhaps take on a cynical view in order to keep our elected officials open and honest. The premise of cynicism becomes especially true when we are asked to give up more personal income, particularly during times of a failing economy.

The occupational tax increase promises to balance the budget. In the year that follows, with some good leadership and creative approaches, we could very well have a surplus (no one can really predict how much revenue removing the cap will generate).

I believe the Mayor and Council are working toward the most responsible and least painful solutions to our budget shortfall, but I sincerely hope the City Government will prove me correct on these assumptions by having some serious debate and attaching a “sunset” clause to the proposed tax increase.

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