December 11, 2003

A Rebellion Against Low Taxes?

South Knox Bubba is pointing to this commentary in the Knoxville News Sentinel story about a "rebellion" against low taxes in Crossville, Tennessee. It's a heartwarming story about how some folks, who wished the county commission had approved a proposed property tax increase for schools, are sending money to the county school system anyway. Heartwarming. But utterly stupid to call it a "rebellion" against low taxes.

"I started thinking about that vote, and the Lord wouldn't let me quit thinking about it. I figured out what the extra tax would mean to me. It turned out to be only $13.30." Johnson scribbled a check and sent it to the Crossville Chronicle, along with a challenge for other taxpayers to do likewise. ... At last count, the "rebellion" has raised a little more than $5,100.

The newspaper stories I've read imply that these people are paying a "tax" by sending their checks to the school board. The KNS story SKB links to even says it:

The people are paying a new tax even after it was defeated.

Taxation is forced conscription of your money by government. These people in Crossville are making voluntary charitable donations. It is absurd to say they are "paying a new tax even after it was defeated" because, well, follow the logic here if you can: There IS no "new tax" because the proposed tax increase was "defeated."

Hence, the notion that this is some sort of "rebellion" against low taxes is just fantasy spin by a writer who probably voted FOR the proposed tax and thinks it ought to have passed.

I actually like what these people are doing - donating money. I've long believed that if you lower taxes, but continue to highlight community needs, people will increase their charitable donations. In fact, the 1980s saw a huge increase in charitable giving thanks in part to the Reagan tax cuts that freed up more people to donate more money.

What's happening in Crossville also is a good example of why Tennessee needs something akin to Colorado's Taxpayers Bill of Rights.

In Colorado, if state or local government wants to raise taxes, it has to get the people's permission in a referendum, which forces the legislative body to make its case to the people about why the increase is needed, what it will be used for, etc. Referendums are also required before government spends surplus revenue. In one town, after voters said "no" to a proposal to spend surplus revenue on expanding the town's park system (and some other things), some folks donated their rebated tax money to the park system. It's democracy - the people vote, and then the people are free to donate, or not donate, as they see fit.