David White of the Birmingham News penned an article about Alabama’s low tax burden that illustrated just how dumb the intelligencia at the News thinks its readers are.

Alabama’s state, county and city governments collected $2,782 in taxes per person that year, according to a review of the Census Bureau’s most recent report on state and local taxes and the bureau’s state population estimates for July 2006.

The 50-state median for state and local taxes collected per person was $3,700. It was more in 25 states and less in 25 states.

Come back next week when Mr. White enlightens us on the mystical mathematical calculation known as the mean.  (Actually, it is quite nice.)  I couldn’t quickly find the grade in which concepts like mean, median, and mode are taught in Alabama schools, but Nashville teaches them in the fifth grade.  Seriously, does the News really think its readers don’t understand fifth grade math?  (Don’t answer that question.)

But the mathematical wizardy doesn’t end there…

Alabama’s state and local governments collected $12.8 billion in taxes in fiscal 2006, which for most state governments ended June 30, 2006, and for Alabama ended Sept. 30, 2006. They collected $918 less in taxes per person than the median.  If they had collected the median amount, they would have had an additional $4.2 billion.

The first person to exercise the abstract concept known as division to calculate the approximate number of people in Alabama using available information gets a free kazoo.  It was kind of White to do the rigorous math involved to calculate the difference between $3,700 and $2,782.  That was a real head scratcher.  If you were one of the select few who correctly solved the aforementioned division problem then you could multiply that result by the $918 per person difference to arrive at the $4.2 billion figure.  I know, this is high level stuff.

Among neighboring states in fiscal 2006, Florida collected $3,693 in state and local taxes per person, 26th highest among the 50 states. Georgia collected $3,321, ranking 35th. Tennessee collected $2,838, ranking 48th. Mississippi collected $2,822, ranking 49th.

Alabama’s state and local governments that year would have collected an extra $4.2 billion in taxes if they had collected the same amount per person as Florida, and an extra $184 million if they had collected the same amount per person as Mississippi.

More math!  Is this White guy some kind of a sadist?

Then White brought us this startling revelation:

Brad Moody, a political scientist at Auburn University at Montgomery, said lower taxes often lead to lower levels of government services.

Thanks for the insightful analysis.  I don’t think I could have come to that conclusion without considerable outside assistance.

“Part of the problem here is, the people who most need state services are the people who have less impact on state politics - people whose kids are eligible for the children’s health insurance program, who need Medicaid services, who are in prison, who are going to lousy public schools,” Moody said.

If only those dummies would vote!  (Of course, some of the felons can’t.)  Moody does touch on one of the principle weaknesses of a democracy (albeit one that is thankfully minimized by poor participation among some, including the groups he specified): people using the ballot box as a means of instructing the government to use the threat of force to take property from another group of people and redistributing it to them.

The Census Bureau’s state and local tax totals are not a perfect measure of the tax burden on individuals, since the totals also include taxes and fees paid by companies, such as corporate income taxes and severance taxes on oil and coal.

And just who do you think ultimately bears the burden of those corporate taxes?  (Hint: real people!)

Alabama had the 40th highest average income per person among the 50 states in fiscal 2006, according to Census Bureau estimates. So Alabamians on average have less money to pay in taxes than people in wealthier states, such as Connecticut and Maryland.

At this point I have to wonder whether White was just excited to be learning about such seemingly common sense concepts or was cursing profusely that his management makes him explain things like having a lower income means you have less money to pay in taxes.  It also means we have less money to buy gas, groceries, health care, and those little fake bullet hole stickers for bumpers.  If Alabama raised our taxes we would have even less for all of those things.

Measuring state and local tax collections per person as a percentage of average income can adjust for income differences when comparing people’s tax burdens.

You don’t say!  Tell me more.

Alabama ranked 46th of the 50 states in state and local tax collections as a percentage of per capita income - 13.1 percent - for fiscal 2006.

Damn it.  If it weren’t for all those losers dragging down our average income we could take the cellar position, which is really the winner’s position, in this calculation as well.

New Hampshire had the lowest percentage, at 11.9 percent. Colorado, South Dakota and Tennessee also had lower percentages than Alabama.

The 50-state median was 15.45 percent.

There’s that pesky median again.  Consult the beginning of the article for an explanation.

Just think, if all of us would just get off our wallets and give the state more tax money we could fund a half way decent education system so that the state’s biggest paper wouldn’t have to write articles explaining what the median is so that the readers don’t think they’re reading a story about road construction.

The Huntsville Times article Sales tax hike unlikely in cities provides the following opinions and quotes from public officials (thanks to The Times for getting them on record):

Huntsville Mayor Loretta Spencer has not considered asking the council to approve one.

(Madison) Mayor Sandy Kirkindall said with 57 percent of Madison residents voting against the recently proposed half-cent sales tax, it was clear to him that Madison residents don’t want it.

“I’m not in favor of raising taxes on the people, certainly not with everything going out of sight like gasoline and food prices,” said (Huntsville) Councilwoman Sandra Moon.

(Huntsville) Councilman Bill Kling said the nearly 2-to-1 defeat of the sales tax, coupled with the city’s special tax districts that have provided more than $75 million in recent years for new and renovated city schools, also makes him not inclined to support a sales tax hike.

(Huntsville) Council President Glenn Watson wants to know specifically how city schools would spend the money before committing to a position on a higher city sales tax… he’s more in favor of helping schools with a TIF (tax increment financing) plan than with additional sales taxes.

(Huntsville) Councilman Mark Russell seemed receptive to a sales tax hike for schools, but only if the money is shared for other city needs such as roads and improvements to the Von Braun Center… “I’d like to see the school system make some changes, which they seem to be in the process of doing with consolidating schools and maximizing their resources”.

(Madison) Councilwoman Cynthia McCollum said she believes that for a sales tax increase to work it would have to be a regional effort.  “I think what has perhaps been lacking is that all of us, the County Commission, Huntsville and Madison all need to sit down together and hammer out a solution to this problem and if that solution means a collective sales tax for the entire region then I would support it”.

(Madison) Council President Steve Haraway said based on how Madison residents voted on the issue in the June 3 election that he would not support a city sales tax increase.

(Madison) Councilman Jerry Jennings said he has serious reservations about the consequences of a unilateral sales tax increase…  He said if Huntsville agreed to it, he’d have no problem following suit.

(Madison) Councilman Tim Cowles said he’d rather see a citywide ad valorem increase. “I just don’t think a sales tax increase is a good idea,” Cowles said. “And the reason why is because we can float bonds against ad valorem taxes and if it’s going to be used for infrastructure, really the way to do it is through bonds.” Cowles said regardless, he’d want it to go before the residents for a vote.

(Madison) Councilman Tommy Overcash said he believes after the results of the recent election that “I would really have to look at all the information before making a decision.”  “It hasn’t been asked for yet and I know they’re regrouping and looking at their options and who knows, it could be a countywide push for an ad valorem tax increase…”

(Madison) Councilman Larry Vannoy said he wants to understand more about the financial straits the system is facing before he gets into a sales tax conversation. “I’d like to see what other solutions might be out there and have a public debate on the issue,” Vannoy said. “If the public is going to support it, I think they need to be more informed and be assured that it will fix the problem.”

(Madison) Councilman Bob Wagner said he would only support it if a vote of the people showed they wanted it.  “In the recent election it was overwhelmingly shot down by residents of Madison”.

Madison School Board President Sue Helms said she expects the board will approach city leaders about a city sales tax increase after the Aug. 26 elections. Regardless of what happens, she said the portables that will be needed at Bob Jones High School will be put out front, not hidden behind the school.

Keep in mind that Municipal Elections are coming soon… August 26.

UPDATE:

 The Madison County Record in Commission fends off talk of tax increase gets the Madison County Commission on the record (thank you to the Record):

Commissioner Roger Jones, District 1, said he wanted to put an end to the rumors the commission may pass the tax even though the voters had said no… “The voters voted and they voted overwhelmingly in support of not putting this tax on, almost two to one, and I respect that vote”.

Commissioner Faye Dyer, District 2, agreed she would not vote for a sales tax increase unless the voters of Madison County approved it as well. “The people have spoken”.

Commissioner Bob Harrison, District 6, said he would entertain the idea of a sales tax but he would have to see how it would benefit the people of his district. “The caveat that my district has given to me is that there should be a no vote unless there is something in it for them”.

Commissioner Mo Brooks, District 5, wanted to see if there was any way to lock down the tax so it would not come before the commission again during the next four years…  “If there had been a way for us to do that it would have been important for us to do that so the school boards will know that they need to address their problems with their mayor and their city council’s”.

The Huntsville Times reports that the ” Madison County Board of Education is meeting Tuesday and Wednesday in a retreat at the Marriott Shoals Hotel in Florence”. “Superintendent Terry Davis has pointed out the already-overcrowded district has $160 million in needs today…”

I guess one of the needs is for the Board to take a two-day meeting in Florence, staying at an “elegant” “spa resort”.  Will the school principals (”seek input from principals”) shlep over to Florence and back or do they get “plush guest rooms” too? More:

Adding to their concerns are cuts in Alabama’s Education Budget for the 2008-09 year. The district already knows it can expect 3 percent less overall from the state program that pays for teachers and other instructional needs. And there will likely be an 8 percent cut in transportation funds.

Madison County Schools held a similar retreat at the same location last year. 

Note that the Times URL page is aptly named: “madison_county_school_board_ho”.

The Marriott Shoals Hotel & Spa “invites you to experience a new level of refinement and charm among hotels in Florence, Alabama. Plush guest rooms feature comfortable luxury and modern conveniences, as well as private balconies providing stunning views of the river… Indulge in a lavish treatment at this Alabama spa resort, offering the pinnacle of rejuvenation”.

 UPDATE:

John Ehinger of the Huntsville Times says Let’s annex the Marriott Shoals:

For reasons I can’t quite fathom, every time the Madison County or City of Madison school boards go on retreat, they hop in their cars and race to the Marriott Shoals, where for a few days, apparently, they engage in the kind of heart-to-heart dialogue they seem unable to engage in here.

I guess they sit in a circle on folding chairs and wail about how the people just don’t understand. But I don’t know.

In short, they take serious discussions of a serious issue - public education - out of the community they serve. And while the sessions (because of that darned state open-meetings law) are open to the public, how many parents can drop what they’re doing, find supervision for their kids and follow the entourage out of town for a few days?

The latest to frolic at the Shoals Marriott was the Madison County school board and other school officials. Superintendent Terry Davis was careful to note that the money spent was mostly federal money. That means, I assume, that it arrives from Mars every other week by bus and is thus paid by Martians and not by Alabamians or Americans.

I have a lot of respect for Ehinger’s professionalism, and now I’m gaining more respect for his humor as well.  Madison County Schools Superintendent Davis just got schooled; let’s hope he realizes it…

Madison County residents overwhelmingly defeated the proposed countywide half cent sales tax increase yesterday with 64% of voters saying NO.  Rich McAdams, president of the Madison County school board, is already leveling threats.

“Three years from now we’re going to have 400 portables spread out across the county,” he said, “and we’re going to stop hiding them behind the schools.”

That’s right, they’re going to make efforts to shame you into wanting to give them more money.

You want even more boldness?  The body of the sales tax isn’t even cold yet, but…

McAdams said the county schools could approach the commission to reconsider the half-cent.

“That’s been the only hope to me,” said McAdams, saying support in certain districts might sway individual commissioners. “Winning countywide wasn’t what had to occur.”

The commission retains the authority to add the half-cent. Julian Butler, attorney for the commission, said the commission agreed to a “binding” referendum, but it’s not clear how long a “no” would be binding.

Just as I suggested last night, the county commission can still impose the sales tax despite the lopsided defeat.  I’m just shocked that McAdams would be so dumb as to flat out admit that is his strategy.  One would think he would wait until after the November election to state that publicly.  Now Roger Jones, Jerry Craig, and Mike Gillespie - the only incumbents with general election opponents (and all supporters of the tax at one time or another) - will have to face tough questions from constituents about their intent to pass the tax after November.  If I were running against them I would pass along McAdams’ comments to every voter I could find.

I think Mo Brooks summed up the situation best:

In a six-page memo against the sales tax increase, County Commissioner Mo Brooks wrote: “It is remarkable people move into rural Madison County for lower tax rates and then complain about the reduced services because they refuse to pay higher taxes.”

Bingo.  Everyone I talk to who lives in the county cites the low property taxes (16 mills versus 27 in Madison and 27.5 in Huntsville) as a prime reason.  Don’t complain about getting services in line with the tax rate.  The problem with this specific tax increase proposal was that it was county wide.  The county was trying to effectively export money from the city and force Huntsville residents to pay a tax we didn’t need.  Huntsville could pass their own sales tax increase at any time - and keep more money than they would have under the county wide plan.  But Huntsville schools don’t need the money.

The Madison County schools need to do now what they should have done two years ago when they started pushing for the sales tax increase: try to raise property taxes only in the unincorporated parts of the county.  If that doesn’t work then do what the rest of us do and make the best out of what you have.

In yet another great column George Will picks apart the current carbon “cap-and-trade” bill set to be debated in the U.S. Senate.

With cap-and-trade, government would create a right for itself — an extraordinarily lucrative right to ration Americans’ exercise of their traditional rights.

…

Cap-and-trade — government auctioning permits for businesses to continue to do business Cap-and-trade — government auctioning permits for businesses to continue to do business.

…

Lieberman says that if a foreign company selling a product in America “enjoys a price advantage over an American competitor” because the American firm has had to comply with the cap-and-trade regime, “we will impose a fee” on the foreign company “to equalize the price.” Protectionism-masquerading-as-environmentalism will thicken the unsavory entanglement of commercial life and political life.

McCain, who supports Lieberman’s unprecedented expansion of government’s regulatory reach, is the scourge of all lobbyists (other than those employed by his campaign). But cap-and-trade would be a bonanza for K Street, the lobbyists’ habitat, because it would vastly deepen and broaden the upside benefits and downside risks that the government’s choices mean for businesses.

It’s warming to know that Republicans nominated a fine conservative like McCain, a man willing to stand up and fight to reduce the size and scope of government.  Never mind, I just pinched myself.

Liberals love to lament how we don’t pay enough in taxes.  As for themselves?  Well, that’s another story.

From Olbermann Watch:

New York State has issued a tax warrant against Keith Olbermann for failure to pay taxes on his humbly named personal corporation, Olbermann Broadcasting Empire, Inc. Olbermann is listed in legal records as the President of Olbermann Broadcasting Empire, Inc.

…

Keith Olbermann joins fellow comedian Al Franken on the list of prominent liberals who love to raise YOUR taxes but do everything in the power to avoid paying their own. Franken, running for the Democratic nomination for Senate in Minnesota was nailed two months ago for failing to pay his taxes. That report let to further investigations which turned up numerous examples of Franken skipping out on tax bills across 19 states for an amount totaling over $70,000. Franken was also fined $25,000 for failure to pay into state Workers Compensation fund. Minnesota Democrats Exposed has all the goods on Franken here.

Do as I say, not as I do.  The modus operandi of the Politburo class of our nation’s modern Marxists.

I used to watch Olbermann’s show - I enjoy surveilling the adversary - but his schtick just got old and tired.

Madison County Tax Assessor Fran Hamilton wants you to know Madison County Property Tax Facts.

Huntsville pays 27.5 mills school tax (Huntsville City Schools); Madison pays 27 mills school tax and Triana pays 25 mills school tax for their combined school system (Madison City Schools). Rural Madison County, Gurley, OXR, and New Hope pay 16 mills school tax for the Madison County School System

The Madison County Schools are the ones pushing for the sales tax hike.  I don’t doubt that they need more money for County Schools, but if Madison County School Board members need money so badly, they should look to their own property tax rates before raising Huntsville, Madison, and Triana sales taxes. Note that Madison County (5 1/2 %) also pays less in sales tax than Huntsville or Madison or the other municipalities (8%).

Huntsville City Schools don’t appear to need the sales tax money. IIRC about half of the City schools are at 30% - 50% capacity (although Grissom is at 140%).  Huntsville City Schools need to better manage what they’ve got and consolidate / close some underused schools. Note that they’re fixing to think about looking at it.

Madison City Schools may need more money, but they haven’t exhausted other remedies yet. Madison City should get the Legislature to create TIFs to fund their school construction. Plus, they could stop annexing Limestone County land that they can’t support. Planning to build schools in Limestone County with Madison County sales taxes is just wrong.

As expected, The Huntsville Times editorial board supports the county wide half cent sales tax increase for Madison County.  They trotted out the old argument that if you oppose any increased tax for education then you must hate kids and not want them to be educated.

[S]upporters have done little beyond preaching to the choirs of PTAs and those, like local business leaders who understand how vital education is to this area’s continued prosperity, who would support the proposal anyway.

Clearly opponents of the tax hike are trolls who lie in wait under bridges and eat unsuspecting children who pass by.  After all, we don’t “understand how vital education is to this area’s continued prosperity.”  If only we were as enlightened as those who do understand that any time the government school bureaucrats demand money the only response is, “How much?”

The temptation, during a time of high gasoline prices and rumors of recession, is for voters to just say no to another tax. In Alabama, truth be told, that’s an almost unavoidable temptation in boom times.

David Prather - the columnist who penned the endorsement - touched on an interesting point here.  Although Huntsville has been relatively insulated from the broader economic issues facing the country we still remain in an unsteady economy, with prices for many items rising rapidly.  I think it’s worth reading about what is happening in Michigan right now in order to comprehend the consequences of raising taxes in a slow economy.

Prather continues:

The money generated from a sales tax won’t go for additional bureaucrats or swankier offices. It will go, school officials from all three systems promise, for building new buildings and renovating those that need it.

I’m looking into this matter.  When the sales tax was originally proposed that is how it was described.  Various officials drafted resolutions that put the capital improvement requirement in writing.  I remained skeptical because nothing would stop the schools from shifting “other” money away from capital expenses to something else (like salaries) and merely replace it with this money.  The proposal on the ballot does not restrict the revenue to capital projects, however.  I’m not sure if there is a more concrete resolution backing up the ballot wording (I’ve contacted a commissioner for clarification).  But wait!  We have their word; they promised.  Well, that will help me sleep better at night.

I think it is instructive to note, though, that the last county wide half cent sales tax, which was put into effect about 20 years ago, was intended to be for capital projects and now is being used elsewhere.

From the Tax Foundation:

The current high price of gas has led to a lot of crazy proposals from gas tax holidays to creating a tax deduction based upon energy consumption. But Rep. Paul Kanjorski’s (D-PA) may top them all in terms of its stupidity. From the Times Leader, Kanjorski’s plan would do the following:

• H.R. 5800 would tax industries’ windfall profits.
• The bill would set up a Reasonable Profits Board to determine when these companies’ profits are in excess, and then tax them on those windfall profits.
• As oil and gas companies’ windfall profits increase, so would the tax rate for those companies.
• Kanjorski said his legislation will encourage oil companies to lower prices to prevent them from receiving higher tax rates.

While Hillary Clinton may have failed ECON 101 along with John McCain, it appears as if Kanjorski may been enrolled in Marxism 450 at the time. In all honesty, nationalization of the oil industry (i.e. Venezuela) may be better than Kanjorski’s ridiculous proposal.

A “Reasonable Profits Board”?!?!  This is insane.  We should encourage people to make money in this country, not threaten to punish them.  The potential to make money stimulates capital investment.  That yields things like jobs and wealth that the government has absolutely no capacity to create.  Before you reply that the government hires people just think about how they get the money to pay them - from individuals that make and sell things.

Good news Republicans!  John McCain is absolutely no better.

Aside - I’d never heard of Paul Kanjorski before today and now I’ve written two posts on him in the span of an hour.

Madison City Schools superintendent Dee Fowler offered up one of my favorite selfish arguments that government bureaucrats - typically in education - love to use.

For Fowler, a smaller state education budget justifies a tax base for schools not fueled by sales tax revenue, which drops during economic downturns.

He said property taxes should drive school funding because they are more stable.

“It’s not fair to compile a budget so tied to economic factors,” Fowler said.

And just why isn’t that fair, Dee?  When the economy slows down real people feel the pain.  Real people make less money (or inflation diminishes their purchasing power - same end difference) and they buy less.  How is it fair to them to have their taxes pegged to more static property taxes that would eat up a greater share of their income during tough economic times while you guys don’t share in the pain?  What makes the government run schools so special that they should be immune to widespread suffering during unsteady economic times?