The shell game continues: more taxation is not the answer

How do we make sure our region goes belly-up? Keep raising taxes to cover the mistakes of our leaders.

We have too many municipalities, too many different taxation districts, too many different rules and WAY too many Chiefs for an area that is shrinking.

Why did Reynolds & Reynolds move from Dayton to Kettering? Maybe the instant .5% raise for those not living in Dayton or Oakwood. There is no excuse for the hodge-podge system of taxation we have in Montgomery County.

And now, Miamisburg, is asking to boost their rate to match Dayton’s:

Miamisburg City Council is placing a 0.5 percent income tax increase on the May 4 ballot.

The council voted Tuesday to approve the tax increase.

The city’s current 1.75 percent income tax has been in effect since 1977 and is the largest source of revenue for the city.

“Our revenue sources are simply not keeping up with the cost of providing services, and the current economic downturn has only magnified the problem,” said Mayor Dick Church Jr. “With no reasonable expectation that the economy will rebound soon, the city has two choices — initiate deep cuts in public services, or pursue a revenue increase that will maintain police, fire/EMS and other essential services.”

Income taxes are paid to Miamisburg by people who earn wages within city limits.

City Manager Keith Johnson estimates that about 70 percent of residents will not be affected by the proposed rate change.

via Miamisburg places income tax increase on May 4 ballot.

Their logic is the same as Dayton’s – the tax will mostly be collected from people who can’t vote it down- the ones who live outside Miamisburg but work in it. Dayton used that same logic- and you’ve seen the massive move out of the city. Look at the vacancy rates downtown- and compare them to The Greene. Start to see the difference?

Why is Miamisburg in this jam? The answer may be found on page 52 of the 2008 financial report (Note 18):


On January 22, 2009 the City issued $5,610,000 in bond anticipation notes at an interest rate of 2.87%. The proceeds will be used to help fund the City’s share of the Austin Road Interchange project. The notes mature on November 4, 2009. It is anticipated to be repaid with general obligation bonds in the future.

The $5.5 million dollar share of the Austin Road interchange could be the straw that broke the budget’s back. While the city has to pay hard money for its share of the project, the people have to wait for the developers to build the “paradise” that will bring “new jobs” and “economic development” to… well, more than just Miamisburg.

If you were trying to choose where to put your business at the Austin Pike exchange- you could go West and North to Miamisburg and suffer a 2.25% income tax rate- or go East and North and be in Washington Township- where there is no income tax at all. Considering the property tax abatements, and the deals where the property taxes get put back into your development for the next 15 years (long enough for the developer to cash out)- the whole deal ends up only benefiting the developers who build more excess retail, excess office and excess industrial space in the pursuit of the holy grail- “economic development.”

However, if we had UniGov- Regional Government- with only one tax rate, and a lot less elected n00bs in charge, we might even start to look at the big picture- which is, we can’t raise taxes and entice business at the same time.

But that would be common sense now. Sorry Miamisburg, you will pay for the sins of your leaders- who’ve once again helped the developers dig into your wallets. You can’t have police and fire and good schools- without helping make the rich richer and you poor.

Next time they ask you to vote for a tax increase- ask why you can’t just let the county govern you- and save the overhead of a bloated municipal government.

Here is what the Dayton Grassroots Daily Show had to say:

And if you wonder why people are flying planes into IRS buildings– don’t worry- it won’t be long before everyone has had enough of this steal from the poor and give to the rich form of leadership.

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