Government spending, not taxes, is the real problem

Many people falsely believe property taxes automatically increase when property values go up and, apparently, many government officials prefer this myth to the reality that taxes go up when county government spending goes up.

Since 1980, Bonner County's budget has increased at more than twice the rate of inflation and population growth, combined. If this trend continues, taxes will continue to go up, irrespective of property values. Conversely, if budget increases are limited to the revenue generated from new construction, the tax rate (mill rate) will go down, as property values rise and taxes won't go up. Runaway property values don't cause high taxes, they simply give officials an excuse to let government spending spiral out of control and high taxes are the result. The only way to control taxes is to control spending.

Unfortunately, the "initiative" and "tax reform" measures being pursued by our local government representatives and ad hoc committees, are actually counterproductive because they have little likelihood of success and they divert attention away from the real problem. Such measures merely shift the tax burden from one class of taxpayer to another, they don't reduce taxes. Instead, they create the illusion that everything possible is being done while giving county officials an excuse for doing nothing.

Although the county shouldn't get a windfall simply because property values increase, there are some legitimate cost increases which result from rising property values and these costs should be intelligently discussed at county budget hearings. The public would be better served if our elected representatives and concerned citizens abandoned the misleading rhetoric and turned their attention to fiscal responsibility in county government. There's no such thing as a free lunch.

L. GOODNESS

Sagle