Tax increase adds to problem
July 13, 2010 · Updated 3:41 PM
The tax increase that Proposition 1 would impose will intensify the financial stress on the community, which already has been hard-hit by the recession. To pay for unsustainable public expenses, the proposition will further deplete the community’s productive resources: It’s eating our seeds instead of planting them. It saps the community’s vitality with a “let government do it” dependency.
The proposition doesn’t account for the costs of raising taxes. With higher taxes, a few more businesses will be lost or not started, a few more workers will be laid off or not hired, a few more families will move. A tax increase could result in decreased revenue.
For several years, voters have approved measures to limit tax increases. The measures have reinforced the message, “and we mean it.” Approval of this proposition says, “but not really.” It will set a precedent for abandoning frugality.
The proposition neglects to examine alternatives to the public supply of services. The crisis is generated in part by regulations that restrict business development and burden economic growth, hence eroding the tax base. To increase taxes is to add to the problem.
Vote no on Proposition 1.