The Fairest Tax

According to Lenoir City mayor, Tony Aikens, the sales tax is the fairest tax. His quote in the News Herald story about a possible .75% sales tax increase Aikens is proposing. Spoken by a true tax and spend politician.

Aikens latest bite, at the higher taxes apple, is being sold as a way to build an extravagant recreation center. You see, if you'll just pay higher taxes, we'll give you something. But according to Aikens, even though he's pushing the higher sales tax, it's not him or the council wanting the higher tax. Except for Aikens, I haven't heard anyone else asking to pay higher taxes.  

Aikens told Calloway a sales tax is the fairest tax since even non-residents pay. He said there had been no decision on the tax hike, but the survey was initiated to get resident input. Aikens said results were about 50-50 as of May 8.

Aikens said he would appoint a charter committee soon and the question about funding a community center would be turned over to that group to possibly recommend putting the item on a 2024 city ballot for a vote. He said council would then decide to put the measure on the ballot for residents to vote.

He added he has discussed with Barker that Lenoir City Schools could get additional sales tax money.

“It’s not me, and it’s not city council, deciding whether or not we’re going to raise the sales tax,” Aikens said. “It’s the people inside the city limits of Lenoir City.”......

Even if voters approve the increase, a new recreation center would be years away, Aikens said, noting Loudon passed a similar increase years ago for their parks and recreation department. News Herald 5/17/23

The Fairest Tax

In Aikens mind, a tax that everybody has to pay is a fair tax. Problem is, everybody doesn't pay sales tax. Those who use the EBT/SNAP, food stamps, don't pay sales taxes on their groceries. So the underprivileged are exempt. Those individuals on the upper end of the income bracket are not harmed so much by higher taxes. So, as usual with all taxes, it's the middle class who feels the brunt of higher taxes.

You might remember back in 2017, when the mayor passed the Rain Tax, he also felt this was a fair tax because every resident, business, school, church and nonprofit would have to pay the Rain Tax. The Rain Tax generates over a half million dollars per year and in the five years the Rain Tax has been in place, the city has banked up over a million dollars in the Rain Tax fund balance.   

Years Away

In the same quote, Aikens says "a new recreation center would be years away". So, what happens to the additional 3 million plus dollars the city would collect in higher taxes before a recreation center would ever be built? I think everyone knows and what if the recreation center is never built?

The Math

The .75% increase in the sales tax would be expected to generate more than 3 million dollars in new revenue for the city per year. Let's say the new recreation center cost 10 million dollars, it could be paid for in less than four years. Does anyone believe that the sales tax would ever go back down? Never.

Conclusion 

The idea of raising the sales tax for a recreation center is just another bait and switch tactic used by shady politicians all the time. Don't be fooled by the promise of a "shiny new thing" over here while politicians pick your pockets. If Aikens wanted to build a recreation center, he has more than enough new revenue from the 17% property tax increase he passed less than two years ago in 2021. 

Taxed Enough Already   

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5/22/23