Monday, June 30, 2008

The taxman cometh, The people goeth

The facts are all around us if you choose to look at them. John Adams said it best,”Facts are stubborn things and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence.” Of the Potomac Highland Counties, Mineral has the highest tax levy rate and lost 0.2% in population in the 2005 census estimate, Hampshire County which has the lowest levy rate gained 9.0%. If not for Mineral County’s proximity to Allegany County, MD it would have been worse. Mineral is the lesser of those two evils.

Migration reflects the dissatisfaction of the populous with the policies of the local government. Those that don’t like the current policies with the means leave, those that like them arrive. With that migration comes a change in influence. As Hampshire County grows in population it will pull in more voters in its senate and house districts. This obviously will increase Hampshire County’s influence in Charleston, and Mineral County’s will wane.

The counties seeing a reduction in population are saddled with an increasing burden of providing services with a reduction of tax base. The tendency is for political pressure to increase taxes, as is the case in Mineral County. This increase tax will increase the rate of migration out of the county. This migration is higher with the better educated residents as their skill set is more easily transferred draining the local economy of its highest income earners.

With the facts in evidence a clear course of action emerges for sound growth, cut the taxes. A counties budget increases should be limited to a combination of inflation and population growth. This will keep tax rates low and encourage economic growth for the benefit of all residents.

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