Sales Tax Increase 2

 

At last Monday's joint Lenoir City council and Lenoir City school board meeting, the topic for discussion was increasing the sales tax by another 3/4 cent. The estimate was that the increase would generate an additional four million dollars per year. The council passed a memorandum of understanding between the city and school board to agree to split the additional taxes generated by the tax hike, 50/50.

Frankly, listening to mayor Tony Aikens and director of schools, Jenny Barker, discuss how they would split up the money, reminded me of the cartoon when Bugsy and Mugsy were scheming about how they would split up the money from their bank heist.

Barker went first with a power point presentation of all the things she was going to do with her new windfall from the sales tax increase. It was a long list of new building projects at all three schools. When it was Aikens turn, he said the city would build a new community center but added a new twist. Now it will also include a senior citizens center. Who could be opposed to such plans, helping the children and the seniors and high school athletics? All the projects from both would cost 19 million dollars according to Aikens. Neither Bugsy nor Mugsy made any statements when or if the big projects would ever be done. Aikens did say, the community center/senior citizens center could be built on land the city owns beside the Venue.

A little quick math, 19 million dollars in expenditures, 4 million dollars in new revenue per year, in five years, the tax increase would pay for all the new proposed buildings. Think city officials would ever reduce the sales tax once the buildings are paid for? You know that'll never happen. 

There was a brief discussion about the cost of a special election for the sales tax hike. According to BOE chairman, Mitch Ledbetter, the estimated cost of a special election would be approximately $20,000.00.  

Aikens says he fully supports the sales tax increase because it's the fairest tax of all. Apparently, in Aikens mind, everyone must be taxed so at least be fair? Fairest tax? The wealthy will not even notice or care of a sales tax increase. The poor, on government assistance, doesn't pay sales tax on food and other things. So once again, it's the middle class that have to bear the brunt of higher taxes.

Mayor Aikens is apparently, absolutely obsessed with raising taxes. The last 17% property tax increase was in 2021 and another one just a few years before that. In 2017, Aikens passed the Rain Tax, citing it as the fair tax because every residential dwelling, church, school and non profit has to pay the Rain Tax. Then in 2018, Aiken tried to raise the sales tax but it was rejected by the voters. You may recall, in 2018, the sales tax increase was suppose to be all for the safety and security of the school children.

Obviously, Aikens is not satisfied with just taxing the residents of Lenoir City into oblivion, he wants to tax everybody that buys anything in Lenoir City. That way, county residents can help pay the city's bills for endless spending. In twenty plus years in office,
I have never seen an elected official so determined to raise taxes as Aikens is.

If Aikens is so in favor of the sales tax hike, why is he afraid to put it on the regular November ballot when he and three city council members are also on the ballot? Why spend an extra 20k of city tax payers money for a special election? There's an election in March, August and November of 2024.  

You will hear the mayor and council say, we're not raising the sales tax, we're letting the voters raise they're own taxes, we're just baiting them to do it. Here's a good question for all the city officials, ask them if they plan to vote for the sales tax increase when it's on the ballot.

Below is a link to the city council meeting video. The sales tax increase discussion starts at about 14:20 of the video.

It's not very long and well worth the watch. Aikens even says the county will likely raise the county sales tax too. He doesn't know county commission very well.

Click Here To Watch Council Meeting

BACK
10/30/23