Consider This: Lower Taxes, Smaller Government
LUBBOCK, Texas (KCBD) – Right now, local officials are making the biggest decision of the year. Setting our property tax rates.
These rates are decided separately by government agencies like city and county… school, hospital and water districts.
These respective government-set rates, together with the government’s valuation of your property, determine how much money you owe the government for its services.
They decide the size of the pie and the size of the piece they get. So when they say they lower taxes, chances are we always pay more, and they get more.
And five tax entities charging five different rates, adds up quickly. Does this sound confusing? He is.
One way to know the real tax story is to understand one term: the effective tax rate.
This is the number that would provide the local government with the same amount of revenue as in the previous year. Call it the “No New Income Rate”. You rarely hear it because the government hates it. It also keeps the Assessment District under control, as this is last year’s rate canceled to make up for higher property values. Taxpayers win.
Huge growth and inflated real estate values have created a boon for the local government. You hear that they are lowering tax rates. It is because they are killing growth. It is a tax increase. Add about 2% for inflation and it could get out of hand. I am for lower taxes and smaller government. So, in our economy today, it’s time for local politicians to get back to basics, use the influx of federal money wisely, and take the pressure off landowners. It is time for the local government to lower taxes and adopt the effective tax rate. Above that, voters will decide whether our representation is conservative enough.
We want to know what you think. Express your opinion by commenting below, by e-mailing us at [email protected] or by writing to us at: KCBD-TV Attn: Consider This 5600 Avenue A Lubbock, TX 79404 ‘Consider This’ is a comment from KCBD Vice President and General Manager Dan Jackson.
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