Wednesday, April 23, 2008

Two Groups To Square Off On Sales Tax

Keith Clark Lee County North Carolina GOP
Local Pro Tax Group Already Underway

The Sanford Herald reported today that Americans for Prosperity was forming a committee to fight the passage of the .25 cent increase in the local sales tax. According to state director Dallas Woodhouse, in the weeks before the voters decide on the tax, the organization plans to talk to voters through town hall and community forums, and reach out to the school system. As late as last week, local AFP chapter president, Lloyd Jennings said no decision had been made about the tax. (see this post) Oddly, there were no quotes from Jennings in the Herald article. AFP has played a major role in defeat in of the sales tax revenue increase in other counties relying heavily on a research (see this post) by an affiliated group , the John Locke Foundation. AFP just lost an effort to have the Sanford business tax repealed.

Meanwhile, materials are beginning to appear from the Fair Tax for Lee County Committee including stickers and yard signs. Representatives of the committee have been appearing at various local events over the last two weeks. The local group also has a website (click here to see the website) while the AFP website as yet makes no mention of its efforts in Lee County. The committee plans to use other materials and is likely to buy newspaper ads on behalf of the tax.

The Lee County group, headed by the Chamber of Commerce, got started on April 2--34 days before the election-- and has scrambled to put together a local campaign. AFP is experienced and has played a major role in defeat in of the sales tax revenue increase in other counties relying heavily on a research by an affiliated group , the John Locke Foundation which has already released a report on Lee County. (see this post)

Since the commissioners have known since last year that they would be putting a referendum on the ballot, their tardiness in starting a local committee has attracted some criticism. In fact, the commissioners did not act to form a local group until a joint meeting requested by the school board on March 24.

The Fair Tax for Lee County Committee picked a name that focuses on the nature of the tax instead of what projects the tax would fund. This approach has not proved as successful as counties in which the commissioners have designated specific projects--something the current commissioners have refused to do (see this post).

Unlike the property tax, everyone who shops in Lee County would pay the new tax. As pointed out by Commissioner Jamie Kelly, “A sales tax increase is our fairest option because it gets every one involved in the kitty,” he said. “Of the $ 1.5 million that an increase would raise, a third of it would come from people who don’t live here.”

One concern for the local committee is possible
confusion with the national Fair Tax Initiative. (click here to learn more) The Fair Tax plan is a comprehensive proposal that replaces all federal income and payroll based taxes with an integrated approach including a progressive national retail sales tax.

An informal online poll on the Sanford Hearld Web page in February showed that 61.6% of county residents opposed the sales tax increase. An additional 23% said they would vote for the tax if assured that the funds would be assured to be used for renovation of Lee County High School. Only 15.9% were in favor of the tax. A new poll on the Herald's page with a simple yes/no, showed 56.8% against the tax. Neither poll is scientific but does give some clue to public sentiment---too close to call.




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