Is having IMPACT™ a good idea?

Frustrated with budget cuts and impairment of a range of public services, Keith Drake of the Albemarle County Taxpayers Association has set up a group called IMPACT™ that calls itself a "resource for the terminally undertaxed." IMPACT™ acknowledges that some folks - those who have recently lost jobs, for example - can't afford a tax increase. But Drake and many others are worried that budget cuts are beginning to have an adverse impact on his area's quality of life. IMPACT™ provides an avenue for citizens to pay additional taxes to Charlottesville, Albemarle County, or the Commonwealth of Virginia. NBC29 has the story including the group's press release.

Many who are worried about teacher layoffs and bulging classes, school closings, non-prosecution of crimes, fewer police on the roads, and a range of other cutbacks want to help close some of the budget gap. IMPACT™ gives them a way to do so. Of course, taxpayers can always make voluntary donations to educational programs, to libraries, and virtually any other part of government if they desire.

But, there is a flip side that is amply illustrated by those who believe the lottery pays for K-12 education. Does lottery profits go to education - yes. Does it come close to paying the full costs of K-12 education in the Commonwealth - no. Yet, we've heard folks say things like "why raise taxes, doesn't the lottery pay for it." Therein lies the danger - tea party types who want to downsize government anyhow, will applaud the idea of "voluntary" taxes or paying taxes only for those services with which they agree. Government would exist in name only.

We are reminded of the famous Oliver Wendell Holmes quote, "taxes are the price we pay for civilization." Unfortunately some of the anti-tax wingnuts don't believe in civilization (or science or public education...).

Cluck, cluck, cluck

Three stories caught my eye today - each about a different, but perhaps overlapping political/economic trend affecting the Virginia and the Shenandoah Valley.

Cluck No. 1

According to the Tax Foundation, the state/local tax burden on Virginian's has crept up to its highest level in about 30 years. Virginia currently ranks 18th out of 50, which according to the foundation, places the state firmly in the middle. In 1993 the commonwealth had its lowest ranking at 35. New Jersey is No. 1 followed by New York. On average, Americans pay 9.7% of income in state/local taxes, in Virginia it is 9.8%.

Republicans will probably squawk about the new numbers and attempt to use them for political gain against Mark Warner and in next year's House of Delegates and gubernatorial races. But, their cackling will probably sound hollow considering that Virginia ranks high in per capita wealth, the state gets high marks for sound fiscal management, and enjoys a record for keeping the tax burden fairly stable. Some state's have wild swings from year to year depending on the economy. 

Tax burdens can vary widely by locality with huge differences in land values and tax rates. I suspect the tax burden in most of the Valley of Virginia is among the lowest in the commonwealth.

Cluck No. 2

The value of Virginia farmland far exceeds the national average and is the highest among neighboring states. The average agricultural acre in Virginia is valued at $5,900 (includes improvements) while the U.S. average is $2,350. In North Carolina it is $4,800 and West Virginia lags the region at $2,700. Various factors can influence values which can differ widely in different parts of the state. Some acres are simply better for crops or pasture than other acres. Analysts also point to high crop prices, favorable tax rates (land use taxation in Virginia), and lower interest rates. Prices are also driven up by development - in Virginia's northern Piedmont and Chesapeake Bay regions and parts of the Valley growth is certainly impacting values. Pretty basic supply and demand - eggs get more expensive when the hens aren't laying.

Cluck No. 3

The Rockingham County Fair is going green with recycling receptacles for aluminum and plastic, a "Green Tent" with recycling displays and information, and just outside of gate 4, the nonprofit Computer Recycling of Virginia will accept computers and small electronics for free. TVs and larger appliances will not be accepted. Recycling is one the easiest things the average family can do to protect the environment - the fair's emphasis on going green is something to crow about. Good job Rockingham County Fair!