By Abdul-Hakim Shabazz in the Indianapolis Star:
This may surprise some of you who have followed me for a while, but as anti-tax as I am, I believe local governments should be allowed to raise taxes as much as they want. I’ll give you a few minutes to digest that statement.
Welcome back.
Allow me to explain my logic. The town of Fishers, one of the faster -growing cities in Indiana, this past week debated whether to raise its food and beverage tax. State lawmakers gave the town the authority to levy the tax in this year’s legislative session. The proposal would increase the sales tax 1 percent on items purchased in restaurants, bars and taverns. Currently, Fishers residents pay a total tax of 8 percent on food and beverages, of which 7 percent is the state sales tax and another 1 percent is the county tax. Revenue from the tax can be used for either economic development or to reduce property taxes.
Food and beverage taxes are like user fees; they are completely voluntary. Unlike income taxes, which you have to pay, or ordinary sales taxes, which are unavoidable unless you are completely self-sufficient, you choose whether to dine out or head to a bar for a cocktail or two.
The broader issue though is local governments have to go to the General Assembly and basically beg for permission to levy taxes and raise the revenue they need to operate. I wish they had more autonomy to raise taxes without having to go to the legislature. They should have the power to raise taxes as much as they want, as long as rates are set by a certain date in the prior fiscal year so people can plan ahead.
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See the full article here:
http://www.indystar.com/story/opinion/readers/local/2013/12/06/abdul-let-local-governments-raise-taxes-if-they-want-to/3896889/
See Abdul's Blog here:
http://www.indypolitics.org/
