September 27, 2006
Indiana Property Taxes
Instead of focusing on cutting spending, freezing spending limits so they reflect a steady percentage of taxed ratables, politician seem to gravitate to how to fund the spending spree. Like alcoholics, the need to consume and spend more instead of curbing the spending addiction prevails.
"Every city and town in the state is moving along that trajectory, where they're going to hit the wall unless we find a way of solving this problem," said Laporte Mayor Leigh Morris.
The problem, he says, is the way Indiana cities tax their citizens. Under state law, cities rely almost entirely on property taxes for revenue.
"We have almost no control over revenue that we receive, but we have all the responsibility for delivering the services," said Leigh.
"We want to get away from property taxes. We want to cut property taxes as much as anybody, but we can't do it if we don't have any way of funding local government services," said Indianapolis Mayor Bart Peterson.
Republican and Democratic mayors are drafting a tax reform plan called Hometown Matters. If passed by the state legislature, it would ease property tax bills. Cities would have the flexibility to choose other ways of raising revenue, through income or sales tax, or food/beverage taxes.
Without cutting spending and freezing budgets, the eplosion of new taxes and schemes of raising tax dollars will increase the burdan of the working poor. Realistic tax reform and only come about with a pro-taxpayer electorate.
A realistic freeze on all state and municipal spending and keeping it at a fixed percentage of the taxed ratable. Limits need to be put in place for borrowing money, salaries, pension and health plans, county cars … etc. Outsourcing work needs looking into. Overstaffed police and municipal workers needs to be paired down. Competitive school choice for individual curriculums need to be provided. If the surrounding community work force has to work 45 years before receiving a pension, so should state and local workers. Health and pension needs to mirror the community average and not be tailored to expensive high rollers.
Filed under Blog, Indiana by George Bolton


















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