I’m sure you’ve noticed how politicians steer clear of using the word “tax” in the same paragraph as “raise” or “hike” – or anything vaguely synonymous with “increase.”
These days, tax hikes are couched in more artistic terminology: “freezes,” “time outs” and my personal favorite, “investments.”
My admiration for linguistic creativity aside, sometimes it would be nice to hear the truth.
Colorado’s Taxpayer’s Bill of Rights (TABOR), luckily, compels government to ask the people before raising taxes. And Coloradans have been very reasonable about giving when needed.
Remember when the state was collapsing from the weight of its own success? Well, most of you voted yes on Referendum C. And no, it wasn’t a tax increase per se, it was just a “timeout” … from, you know, a time without tax increases.
Turns out, during this timeout, Colorado legislators will be busy keeping a lot more of your money than suggested during the campaign for Referendum C.
This week, Mike Mauer, chief economist for the Legislative Council – whose forecast was the gold standard for proponents of Referendum C during the campaign – says that the state will take in $5.37 billion over the five years, not the $3.7 billion that was pounded into our consciousness at the time.
Surely, legislators are exploring ways to refund all that extra cash.
While we’re on the topic of government deception … how about FasTracks? What right-minded citizen didn’t want to build a rail system for underprivileged folks in Highlands Ranch? Did we expect them to drive to Rockies games?
Recently, Denverites learned that RTD is now confronted with a “financial crisis.” Somehow, it looks as if FasTracks might be $2.5 billion over budget.
That’s more than 60 percent greater than what Denver voters OK’d in 2004. Listen, it could happen to anyone.
We can’t hold economists responsible. Forecasting is almost impossible. Evidently, we can’t hold RTD accountable, either. Voters should, however, learn not to trust government guesstimates and rhetorical deception. Especially now that the legislature is in session.
During this session alone, at least six bills have passed that would potentially allow local governments to raise taxes. I’d love to blame Democrats, but three of the six are bipartisan deals and one is a Republican creation.
These bills will allow school districts, counties and cities to go above the statutory sales-tax caps that are in place to fund their pet projects. Those local entities, fortunately, still would be required to go to their voters for approval.
The way it should be.
That’s not the case with another plan. This one comes straight from Gov. Bill Ritter and Sen. Sue Windels. As it looks now, it’s a tax increase masquerading as a “freeze” or “stabilizing” of property taxes.
The proposal, it is said, will cost only $65 million annually.
Maybe. Maybe not.
This issue, unlike Referendum C, is not about “found” money that would otherwise be refunded to taxpayers. We’re talking about property taxes – both residential and commercial. Property values, historically, rise. And with a mill-levy freeze, it would mean higher taxes for most property owners as values rise.
So this is not an “investment” or a “timeout” – it’s a tax increase.
This week, in a symbolic Senate vote, the plan was defeated overwhelmingly.
But the deal is far from dead. Right now, plenty of smart folks are reviewing ways to pass it and make it palatable for the general public. Most Democrats, and many Republicans, claim that such a freeze does not require voter approval under TABOR.
Perhaps. But if 2000’s perpetual tax increase for education, Amendment 23, and Referendum C (with tons of extra cash!) aren’t enough, why not ask Coloradans if they think another tax hike is in order?
Make sure to call it “revenue stream enhancement” to soften the blow.
You’ll be fine.
David Harsanyi’s column appears Monday and Thursday. Reach him at 303-954-1255 or dharsanyi@denverpost.com.
