Saturday
Jul052008
« Flip-floppin' Lorraine Green »
Saturday, July 5, 2008 at 4:09AM
I admit, she about had me. When I saw her in two different candidates forums, Lorraine Green was articulate and seemed to have some pretty good ideas for Gwinnett. Despite her bias toward homeowners, I liked what she had to say about immigration and transportation. She especially had me hooked on her HOST tax plan that promised to eliminate the county portion of the property tax in favor of an additional sales tax. I even began to question my previously solid support for Charles Bannister. However, until I read about Charles Bannister's LOST tax plan, I did not notice the flaw in Green's proposal. After realizing a key difference between a HOST and a LOST property tax program, I now see that Lorraine Green's tax proposal is just another example of her bias toward homeowners and disregard for Gwinnett businesses.
While I still need to read more on the opposing concepts, what is apparent is that Green's proposal is unfair to the businesses that make up an important part of the Gwinnett community. Lorraine pretty much admits the preferential treatment to homeowner.
Perhaps, but there is no guarantee this relief will come. What if our current economic slowdown turns into a full-blown recession and the expected increase in sales tax revenues do not fully materialize? Would there be any tax relief for businesses in such a scenario? Sure, I might personally save a few more bucks with the HOST plan, but I believe fairness is important and the LOST proposal appears to do a better job ensuring equity to both homeowners and businesses. If you are a business owner in Gwinnett, Lorraine is effectively saying that she puts your needs as Gwinnett taxpayers behind those of homeowners. And for those of you who may be grumbling that I suggest that business deserves tax relief, I want to emphasize that many of these are small businesses that are owned and operated by or employ your neighbors and friends. The Board of Commissioners already makes doing business in Gwinnett tough enough with some of their land use decisions; should this be compounded with an inequitable tax plan? However, what is more important here is not the details of either tax plan but the political tactic being employed by Green. (I intend have done a preliminary analysis of the potentials savings of sales tax versus property tax and I am not sure that either a HOST or a LOST plan should be implemented! Stay tuned for a deeper analysis in the near future.)
What I really failed to recognize as I fell under the spell of Lorraine's slick candidates forum performances was the obvious flip-flop she did on taxes in the span of less than two months. In a candidates forum in early May, Green was reported to be skeptical of tax cuts:
So are we supposed to believe that circumstances changed in just over a month that caused her to propose tax cuts such a short time later? Ironic that though Green has introduced herself in a forum as not being a career politician, she has mastered the skill of saying what is needed to get elected. There is further evidence to be skeptical of her commitment to tax cuts. Where she has been consistent is her unwavering support of government services. She used services as a reason for not being able to cut taxes and she again raised the point in the article on the Bannister's LOST proposal:
One must wonder what happens if "Chariman Green" were faced with following through on tax relief or cutting back on government services. As a conservative, this is an easy question for me. Tax relief. There are only a few services we need from the county if we truly support limited government. Would Green see tax relief as taking precedence maintaining the role of government? I think not because she seems more consistent in her support of services than tax cuts.
Fortunately, I have managed to shake myself out of the spell of Lorraine Green's smooth, sweet-tasting political posturing in time not to make a mistake in my vote for Chairman in the GOP primary. I can now see that she is flopping like a fish out of water to say what voters want to hear. Gwinnett voters need to be smart enough to look below the surface and realize that Green appears to be playing politics.
The [Bannister] plan to use a sales tax is similar to one announced two weeks ago by primary challenger Lorraine Green, although Green proposes a homestead option sales tax, which would give a 100 percent homestead exemption on property and keep commercial property taxes in place.
Bannister, though, wants to do a variation on the current local option sales tax program used in 147 counties. The one percent tax, he said, would allow for half of the county's property tax revenues to be rolled back each year, giving both commercial property and homeowners a break. The property tax roll back would be computed each year.
While I still need to read more on the opposing concepts, what is apparent is that Green's proposal is unfair to the businesses that make up an important part of the Gwinnett community. Lorraine pretty much admits the preferential treatment to homeowner.
Green said she believes the HOST program is the only viable one for the county, but she added that excess revenues from the sales tax would allow for a reduced millage rate for commercial property owners, too.
"My plan still gives commercial property owners a break, but it takes care of homeowners first," she said.
Perhaps, but there is no guarantee this relief will come. What if our current economic slowdown turns into a full-blown recession and the expected increase in sales tax revenues do not fully materialize? Would there be any tax relief for businesses in such a scenario? Sure, I might personally save a few more bucks with the HOST plan, but I believe fairness is important and the LOST proposal appears to do a better job ensuring equity to both homeowners and businesses. If you are a business owner in Gwinnett, Lorraine is effectively saying that she puts your needs as Gwinnett taxpayers behind those of homeowners. And for those of you who may be grumbling that I suggest that business deserves tax relief, I want to emphasize that many of these are small businesses that are owned and operated by or employ your neighbors and friends. The Board of Commissioners already makes doing business in Gwinnett tough enough with some of their land use decisions; should this be compounded with an inequitable tax plan? However, what is more important here is not the details of either tax plan but the political tactic being employed by Green. (I intend have done a preliminary analysis of the potentials savings of sales tax versus property tax and I am not sure that either a HOST or a LOST plan should be implemented! Stay tuned for a deeper analysis in the near future.)
What I really failed to recognize as I fell under the spell of Lorraine's slick candidates forum performances was the obvious flip-flop she did on taxes in the span of less than two months. In a candidates forum in early May, Green was reported to be skeptical of tax cuts:
County staff told the commission that it needs to raise taxes or cut services, she said. Cutting taxes isn't an option, because county government can't run a deficit, Green said.
So are we supposed to believe that circumstances changed in just over a month that caused her to propose tax cuts such a short time later? Ironic that though Green has introduced herself in a forum as not being a career politician, she has mastered the skill of saying what is needed to get elected. There is further evidence to be skeptical of her commitment to tax cuts. Where she has been consistent is her unwavering support of government services. She used services as a reason for not being able to cut taxes and she again raised the point in the article on the Bannister's LOST proposal:
There's no doubt the spending of the past three years will require a change in tax policy without significantly reducing services citizens have come to expect.
One must wonder what happens if "Chariman Green" were faced with following through on tax relief or cutting back on government services. As a conservative, this is an easy question for me. Tax relief. There are only a few services we need from the county if we truly support limited government. Would Green see tax relief as taking precedence maintaining the role of government? I think not because she seems more consistent in her support of services than tax cuts.
Fortunately, I have managed to shake myself out of the spell of Lorraine Green's smooth, sweet-tasting political posturing in time not to make a mistake in my vote for Chairman in the GOP primary. I can now see that she is flopping like a fish out of water to say what voters want to hear. Gwinnett voters need to be smart enough to look below the surface and realize that Green appears to be playing politics.
Reader Comments (2)
First, that Green offers a different plan that does Bannister does not make Green a "flip-flopper." Just different.
Second, and certainly before you discount Green' s proposal as anti-business, consider this:
HOST is an elimination of residential property taxes in favor of a retail sales tax. Who pays the bulk of retail sales tax? It's not business-- it is you and me and all of those Gwinnett homeowners who pay the penny. Also paying that penny are.... again, NOT businesses... but non-homeowners who, for the most part, do not currently pay taxes sufficient to pay for their share of government services.
Take it a step further... those homeowners who have saved a couple of thousand in property taxes will spend that money where? At a Gwinnett business, most likely.
Perhaps you favor a tax plan in which businesses receive a benefit for which they do not qualify; I don't know. I do know that you have a pro-development bias that sometimes affects your reasoning. Please consider again-- Green's plan is not anti-business... it is just PRO-homeowner.
I did not say Green flip-flopped because her plan was different than Bannister. Please re-read my article. I said she flip-flopped beacause - well - she flip-flopped! In may she said we couldn't cut taxes and in June she comes out with a tax cut. Flip....flop.
You make a valid point about how is paying the bulk of the sales tax in Gwinnett. However, I ask - where are they spending this money to generate these sales taxes? At businesses. Shouldn't we cultivate a business-friendly environment in Gwinnett so that residents can spend their dollars within the county?
As for how much money is truly saved with either plan, I am not sure about the merits of HOST or LOST. I have done some preliminary number crunching and my initial impression is that the ultimate net savings may not be as great as either Bannister or Green would have us believe. However, I need to do some more work so I am not ready to go into any more depth at this time. Furthermore, I could well be off in my early impressions.
Finally, I do not have a pro-development bias. I believe in the free market. I believe in limited government. I simply do not start with the assumption that development is bad and that developers are the boogeyman.
Also, so that readers are aware, TalkGwinnett.com is published by the owner of Shoestring Solutions, Bob Griggs. Shoestring has created a site in conjunction with Lorraine Green, CleanUpGwinnett.com. While Bob may completely hold the views on HOST v. LOST as stated above, it is only fair that the reader knows there is business history between the publisher of TalkGwinnett.com and Lorraine Green.