Hi, all: One note before I begin: the following letter is not meant to bless the recent hotel tax proposal or the general convention center issue. :) Hotel taxes are supposedly a blessing to local communities because they "export" taxes: we get the benefits and send the bill to those who come here and use our hotels. Every unit of government has these tax mechanisms, of course, so the benefits are somewhat illusory. We pay our own hotel taxes when we travel, and we may even lose money if our hotel tax scares away would-be visitors. Tax exporting also fosters a disconnect between the price of our public demands and our appreciation for those things we buy as a public. This disconnect also pertains to commercial taxation. When commercial taxes go up, consumer prices go up. When consumer prices go up, consumers wind up paying more sales taxes. Commercial taxes ultimately wind up being exported regressively back to private citizens. This, for all our emphasis on commercial taxation as a means of progressivity. Bringing this back to Minneapolis: while I support both the library and school referenda, we need to realize that commericial taxes quietly reduce the progressivity of our tax system. Business taxes still have their place, but it's unrealistic to assume that business taxes will painlessly foot the bill. It's a politically sensitive issue that's perhaps an even tougher policy challenge. I'd like to hear what you folks think about it. *stepping off the soapbox* Dana Bacon Page Neighborhood --- David Brauer <[EMAIL PROTECTED]> wrote: > Tim sez: > > >the memorandum GMCVA presented to ways and means in > >which they ask the city to seek from the state an > >additional one cent hotel tax to increase their > budget > >in the coming three years states in their words, > "the > >request is with the full support of the Minneapolis > >Hotel Association, who recognize the value of the > plan > >and the importance of GMCVA programs." > > Man, if my fabulous USWest-is-now-Qwest DSL wasn't > down this morning, I > would have been ALL OVER this story. > (http://www2.startribune.com/stOnLine/cgi-bin/article?thisStory=82791115) > > We build 'em a friggin' Convention Center, and they > say that's enough to get > tourists. We build 'em a bigger Convention Center, > they say that's enough. > > A $1.5 million fund to subsidize Convention Center > rents? If even a penny of > that comes from city taxpayers - and it looks like > $750,000 could come out > of taxpayers' hides even if a one-percent hotel tax > is approved - it's an > outrage! > > David Brauer > King Field - Ward 10 > > > __________________________________________________ Do You Yahoo!? Yahoo! Messenger - Talk while you surf! It's FREE. http://im.yahoo.com/
