Senator Beach Proposes 50% MARTA Tax Hike

Every man, woman and child in Fulton county has to pay a 7% sales tax which means a hundred dollar pair of shoes really costs them $107. Of that $7 tax one dollar goes to subsidize MARTA. It may not sound like much but over the course of a year it adds up to about $265 million dollars.

Now two hundred and sixty five million dollars is a lot of money no matter how you look at it but in a county with a million residents it might be justified if the taxes were going to something everyone uses, needs or wants. Unfortunately in a county plagued by congestion only a tiny percentage of Fulton County residents use MARTA trains during rush hour.  The census charts below demonstrate only 2% of the county’s population ride MARTA trains to work.

Fulton commute chartFulton commute stats

More people work from home or even walk to work than ride MARTA trains but we pay hundreds of millions of dollars to subsidize the trains. It is a perfect example of why Fulton County already has transportation issues. Politicians allocate transportation money based on politics rather than sound fiscal policy.

Which brings us  to this news story from 11 Alive News about Alpharetta’s own State Senator Brandon Beach who is proposing a 50% MARTA sales tax hike to expand trains into North Fulton. While I couldn’t disagree more with Senator Beach on this issue I do appreciate his consistency. He was pushing for heavy rail in his dual role as CEO of the Greater North Fulton Chamber of Commerce and President of the North Fulton CID long before he was elected to the state legislature.

But there is absolutely no objective justification for a massive tax increase to expand the least used, least efficient, least flexible and most expensive transit option available in Fulton County. Over the past few decades billions of dollars have been spent to subsidize a rail system which serves a tiny  portion of our population while the roads that support 100% of residents have been sorely neglected. Any further diversion of transportation money to MARTA trains will only make the problem worse.

A transportation tax increase of hundreds of millions of dollars on Alpharetta residents dedicated to trains that would make traffic here worse would be unconscionable so as an elected representative for 63,000 residents I will not support this effort. Instead I will vigorously oppose any legislation which would permit a 50% MARTA tax increase and encourage my fellow elected officials in Fulton County to do the same.

 

Money grubbing bureaucrats find they didn’t need to extend GA 400 tolls after all

According to the article Ga. 400/I-85 to be rebuilt, but was new toll needed?  in the AJC:

… for Ga. 400 toll payers who once expected the toll to expire this year, the congestion relief will be bittersweet.  As they now continue paying the toll for another decade to fund the interchange project and others, there is a new kicker. The bid the state accepted Friday for the project is far lower than the state estimated it would be when it made the case that the toll had to be extended.

So low, it raises the question of whether the toll extension was necessary in the first place.

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The Atlanta Journal-Constitution noted at the time that the toll authority expected to have $42.5 million  in excess toll reserves at the conclusion of the original toll, meaning that the state did not need to extend the  toll to pay for the  I-85/Ga. 400 interchange. However, Perdue, who chaired the authority as governor, replied that not just those projects, but others  along the corridor needed to be done, too.

If bids on all 11 of those Ga. 400 projects — estimated by SRTA last fall at a total of $67 million — come in at the same low rate under the estimates, the state wouldn’t need the new toll to build any of them.

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Gena Evans, director of the toll authority, told a legislative panel earlier this year that eliminating the toll could impair the state’s bond rating as well as confidence with investors in public-private toll projects.

Ms. Evans neglected to mention that removing the toll would also impair her ability to collect a six figure salary as the state’s head toll collector if the tolls stopped as promised.

As a wise man once said,”Once you vote to give the government your money they will do with it what they damn well please.” Remember this any time  government asks you for permission to take more of your money.

Hide your kids… Hide your wife… Governor Deal is looking for resources

Georgia Governor Nathan Deal took time from his busy schedule of punishing insolent reporters to appoint a new commisssion to look for innovative ways to stick it to Georgia taxpayers “find the right ways to balance  the educational needs of Georgia’s children with the appropriate resources to  fund them.” You can read all about it here.

A blue ribbon panel of experts and politicians looking for new ways to get money? My wallet feels lighter already.

Why don’t those commissions ever have regular old everyday taxpayers on them? You know… someone that pays taxes but doesn’t benefit from the question at hand. I’d feel a heckuva lot better if the governor had taken Bill Buckley’s advice and just pulled random names out of the phone book instead of hand picking educators, politicians and bureaucrats. Time to sound the Antoine Dobson tax increase alert!

Three cheers for Rupert Parchment & Decor Moving Services of Atlanta

An Atlanta business is offering a special relocation deal for Illinois residents hoping to avoid the recent income tax increases in that state:

Décor is offering the “I’m Outta Here” special of 10-50% off of their already discounted rates for those who wish to exercise their right to relocate. The special is described as relief from higher taxes with financial savings for those businesses or residents who relocate to Atlanta, GA. The “I’m Outta Here” special starts immediately and is described as a way to welcome new jobs to Georgia and help people burdened by high taxes.

“As a small business owner, I’m struggling to stay above water. Where would I be without my employees? I can’t reduce salaries any more. I can’t lay more people off. It’s heart-wrenching. When you already are hungry, adding more taxes is like drawing blood from a rock. We just don’t have it to give,” said Rupert Parchment, Owner of Décor Moving Services, Inc.

I applaud Mr. Parchment for his using his conservative beliefs to create a brilliant marketing campaign. Hopefully he will attracts enough business to keep his employees busy in an industry which has taken some major hits in recent years. Good Luck to Mr. Parchment and Decor Moving Services as they have the inside track to being named GA Jim’s business of the year for 2011!

Read the whole thing here.

View from a Political Outsider – Georgia’s Transportation Tax

Jim Galloway’s recent Political Insider column in the Atlanta Journal discusses Georgia’s recently rejected “trauma tax” and how that rejection will impact the state’s proposed sales tax increase in 2012. I respect Mr. Galloway. His Political Insider column provides a great deal of insight into the world of Georgia politics… but being an insider has its price.

In the case of tax increases Mr. Galloway’s insider viewpoint prevent hims from seeing the issue from the perspective of the political outsider (otherwise known as a typical voter). As a political outsider perhaps I can help.

Right now there is a failure to communicate in Georgia. The communication failure stems from the fact that too many elected officials aren’t listening to the voters. Instead of listening to voters politicians spend their time listening to each other along with the bureaucrats and lobbyists that surround them. After talking amongst themselves this political class hammers out a mutually acceptable solution to whatever the perceived problem is and unveils it to the public. Of course the solution always involves confiscating millions of dollars from Georgia’s taxpayers so the taxpayers frequently reject the proposed solution once they find out about it. The whole process is a tremendous waste of time and a big part of the reason government rarely solves anything. If more elected officials juat made a point of talking to people outside of their echo chamber a great deal of time and money could be saved and some progress might actually take place. 

The recent trauma tax debacle is a perfect example of miscommunication between voters and politicians. I have lived in Georgia for 40 years and I have never once had a person tell me they wanted or needed more trauma centers in the state. But despite the fact that average people didn’t think there was a problem, some hospital lobbying group convinced Georgia’s political class that a problem did exist. Once the lobbyists convinced the politicians there was a problem they all got together and hammered out an agreement that was acceptable to them. As usual the solution called for Georgia’s taxpayers to cough up millions of dollars. So once they were satisfied with their solution the political class went to the people of Georgia. The voters weighed the option of paying millions of dollars to solve a problem they had never heard of or faced and said no. The whole process was a complete waste of time and money that could have been spent on one of the real problems facing Georgians.

 A similar process is taking place now in Georgia’s struggle to address transportation infrastructure needs. Both the voters and politicans seem to agree that Georgia needs transportation improvements in this case but the trouble is that the political class and the voters disagree on the solution.

The political class say they could fix the problem if they only had more money. What the political class doesn’t understand is that the voters don’t blame infrastructure needs on a lack of money, the voters place the blame on the political class. Taxes in Georgia are the 16th highest in all of the United States while transportation spending is 49th out 50. See the problem?

But Georgia’s political class won’t accept the fact that they have been the problem. Instead, the politicians and lobbyists  sat down together and once again hammered out an agreement acceptable to the politicans and lobbyists.  And once again their solution is to raise taxes… billions and billions of dollars in taxes. That solution must have sounded awfully good in their echo chamber because a few months ago the political class unveiled this genius idea to great fanfair and they patted themselves on the back so hard that Atlanta’s chiropractors must have made a fortune.

But the people that will pay for this enormous tax increase are not impressed, they are hurting. They face 10% unemployment while the other 90% are still unsure of the future. More than 12,000 Georgia homes were foreclosed in July. IRA accounts and home prices are going down while grocery and gasoline prices are going up. To make matters worse their federal income taxes are going up in a few weeks and they will have even less money to spend. Georgia voters are hurting and they find it offensive that political insiders have decided taxpayers need to pay billions of dollars more to fund transportation improvements. While transportation improvements might bring jobs to Georgia in a decade or so, the state’s taxpayers would have to cough up billions of dollars that could have gone to pay their mortgage or put food on the table in the meantime.

During Georgia’s recent economic boom transportation issues were a top priority for Georgia taxpayers. Voters pleaded for road improvements but the political class ignored their pleas and spent the money elsewhere. Now that the economy has tanked the roads are no longer the highest priority for voters. Money is the top priority now and the politicans find the shoe on the other foot. So as the political insiders plead for money to improve roads in the current environment I fully expect Georgia’s voters will ignore their pleas in return.

 You can read Mr. Galloway’ Political Insider column on ajc.com here: http://bit.ly/gqeLnw

(Added 12/2/10 ) P.S. I forgot to mention that Mr. Galloway conspicuously chose not to allow comments on the column cited above. It is the only recent column which doesn’t permit comments and I don’t ever remember seeing him block comments before. Feel free to draw your own conclusions.

Tax and Spend Republicans #2

I was born in October so I recently received a thoughtful note from the state of Georgia requiring me to send them $200. What a great way to celebrate the joyous occasion of my birth. If you own a car here in Georgia you too have probably received one of these car tag bills. Isn’t government thoughtful? And if Republicans get their way the state’s gift to you next year could be even larger. Oh Boy!

The tax increase I am talking about is state constitutional amendment #2 which is on the ballot this year. The amendment says,”Shall the Constitution of Georgia be amended so as to impose an annual $10.00 trauma charge on certain passenger motor vehicles in this state for the purpose of funding trauma care?”

But that can’t be right because Georgia Republican politicans told us that the trauma care in question would be paid for by the “Super Speeder” law they passed last year. Remember when Republicans raised speeding ticket fees by $200? Didn’t our elected officials tell us that exorbitant fines for speeding would raise $23 million dollars a year to pay for the state’s needed trauma centers? Yes they did. They were wrong.

 The super speeder law has been an abject failure when it comes to raising money. The state has only received about $2 million of the $23 million they projected. Much to the surprise of politicians it turns out that when you charge people hundreds of dollars for something they stop doing it. And since the first Republican tax has failed to raise enough money the only solution is for us to send them even more money. Well at least they will repeal the super speeder law since it didn’t raise enough money,right? Fat chance. And how much of the $2 million they have raised has gone toward trauma care? I’m guessing the over/under is 0.

Now I realize that the Republicans of Georgia are generally more conservative than the Democrats. But George Bush was more conservative than Al Gore and you see where that got us.

Somewhere along the way the majority of Republicans of Georgia have lost sight of the fact that it is impossible for governments to do everything for everybody. Eventually you run out of other people’s money, as Margaret Thatcher once said. If you don’t believe her just look at the financial situation in Cuba, Venezuela, California or Illinois.

I am not against more trauma centers in Georgia but I do believe another tax on every car owner in Georgia is the wrong way to solve the problem and I am opposed to the state of Georgia reaching deeper into the pockets of my family every time it tries to address a problem. I am also tired of politicians calling themselves conservative as they take more and more money away from their constituents.

Georgia Republicans often have good intentions but you know what they say about the road to hell. Of course, if we could pave roads with good intentions the Republicans might not be advocating a new transportation tax.

Marta is on a death spiral

The title of this post is taken from a quote by Mike Bodker,  the mayor of Johns Creek, Georgia.  Mayor Bodker spoke out about the latest round of service cuts being recommended by Atlanta’s MARTA transportation system in today’s Beacon Newspaper. “We need a completely new system.,” he said. 

I expect one reason Mayor Bodker feels that way is that MARTA will no longer provide train service to North Fulton county after 7:00 pm.  One helluva “regional transportation system” we got here. Glad to know everything I buy costs 1% more just to keep up that great service!

Read the whole thing here: http://bit.ly/chFOv3

MARTA vs. Roads and privately operated transit

This is another chapter in my continuing response to commenter Paul. In this chapter I will try to sort through the following paragraph to make some sense of the claims and arguments and then answer them to the best of my ability.

 “You say MARTA is “a government subsidized pseudo-monopoly.” Again, I refer back to the absolutely massive amounts that are spent on roads. Yes, roads are used for transport of food and goods, but so is rail. The amount spent on public transit in this country is absolutely nothing when compared to the amount spent on roads. Your statement that private sector companies would step in if there wasn’t a governement “subsidized” transit system has shown to be false over and over again. Look at cities without rail transit – where are the private lines? Why hasn’t some private developer built transit lines where there is no government competition? In fact, there is only one place in the entire country where that has happend – the “South Shore Line” in Northern Indiana/Illinois, and even that recently had to receive government money to stay afloat. Long gone are the days of private streetcars.”

Commenter: “Again, I refer back to the absolutely massive amounts that are spent on roads. Yes, roads are used for transport of food and goods, but so is rail”

Response: Surely you jest. As I pointed out before roads are the lifeblood of our entire society. To compare roads to public transportation is patently absurd and it shows that you are grasping at straws. “Massive amounts” are spent on roads because everything you need to survive is dependent on functioning roads. Roads are not an option they are a necessity. Public transportation would not exist if not for the roads that buses and cars use to reach the train station. Railroads do transport goods but they don’t deliver them to stores and unless MARTA has started a freight service it is just silly for you to bring up railroads in a discussion of public transportation. Also, roads are paid for by user taxes. Every gallon of gasoline sold in Georgia costs 50 cents more because of federal, state and local taxes.

Commenter: “Your statement that private sector companies would step in if there wasn’t a governement “subsidized” transit system has shown to be false over and over again. Look at cities without rail transit – where are the private lines?”

Response: I never said anything about private rail. I said private transit system. That private system would probably be composed of buses, cabs and other options just like it is in the vast majority of cities around the world. Doesn’t it seem odd to anyone else that there are only a handful of cities in the United States that even have commuter trains and those are the cities with the worst traffic. Perhaps the billions of dollars used to subsidize MARTA over the years could have served a better purpose and Atlanta wouldn’t face the traffic problems we see today.