Re: 4% Meals Tax to Save our Schools and Reduce our Property Taxes
Posted by:
dated, but otherwise excellent
()
Date: September 08, 2016 09:40AM
No food Tax 2 Wrote:
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> While County taxes increased between 2000 and
> 2011, poverty within the County increased by 70%.
>
> A Meals Tax would send a message that Fairfax
> County is unfriendly to the restaurant business
> (including high-end restaurants in Tysons Corner),
> unlike Loudoun and Prince William Counties which
> have no such tax.
>
> A Meals Tax will cause restaurant patrons to
> provide smaller tips to waiters and waitresses,
> thereby harming people, including minorities, in
> starter jobs.
>
> A Meals Tax will target a single industry
> (restaurants) characterized by a high percentage
> of start-up small businesses, low profit margins,
> and high rates of failure (93% of restaurants
> don’t last five years).
>
> A Meals Tax, including the administrative costs of
> implementing the tax, will compound stresses on
> the restaurant industry in the near future,
> including higher healthcare expenses and a higher
> minimum wage, all of which will make it difficult
> for the industry to prosper in Fairfax County.
>
> A Meals Tax will raise restaurant prices, which
> will dissuade people from eating out as frequently
> as they did in the past.
>
> Revenues from a Meals Tax will fund only $88
> million of a $200 million Government budget
> shortfall, which means it will provide no real
> estate tax relief to homeowners and businesses.
>
> Revenues from a Meals Tax are not needed for
> schools, as 75% of school spending is for school
> personnel compensation which has grown at a 4+%
> rate over the past few years.
>
> The Fairfax County economic recovery from a
> recession is too meek and fragile to handle a tax
> increase.
>
> A Meals Tax will take discretionary money (~$900
> million over 10 years) out of the private sector,
> including small businesses, that would support
> economic growth more than the County Government
> spending it.
>
> A Meals Tax will raise unemployment in the County,
> as the tax will cause lay-offs (as it has in
> Arlington county) in the restaurant industry that
> accounts for a significant percentage of County
> employment.
>
> Imposition of a Meals Tax before the World Police
> & Fire Games in 2015 would be a publicity debacle,
> as the County could be accused of raising taxes
> and costs after the Games selected Fairfax County
> as the venue.
The reference to the World Police and Fire Games dates this, but it is still excellent. The proposed meals tax will not erase the County/schools budget shortfall, it will not provide property (or any other form) of tax relief, and it targets restaurants, the elderly, and the disabled (they are on fixed incomes, and the meals tax would increase their costs; the County could exempt them from this tax, as they are exempted from property tax, but this is not part of the plan).
Support for the tax by Fairfax County restaurants seems spotty at best. The truth of the matter is that most of the support comes from the schools, proxy organizations for the schools, and County employees. With respect to the schools, the unfortunate and inconvenient truth is that they spend (waste?) too much money, and a great deal of the money spent cannot be tied to any measurable improvement in the quality of education.