Koelemay's Kosmos

Doug Koelemay



 

Mad Hatter’s Tea Party

Anti-tax zealots in Fairfax County are protesting property taxes, but the logic of their tea party invites comparisons to Alice in Wonderland, not the remonstration in Boston Harbor.


 

Political signage is sprouting across Fairfax County, including little green signs that read, "No tax increase," topped by little red signs that read, "76 cents." In a season usually devoted to dogwood and wisteria, azaleas and tulips, what gives?

 

The signs, it turns out, belong to the Fairfax County Taxpayer Alliance, which again is serving up charges of government waste and high taxes as conspiracies facing more than a million residents of Virginia's largest and richest political jurisdiction. That Fairfax County has been named one of the best governed and most efficiently run local governments in America with the highest achieving schools in the Commonwealth doesn't seem to matter. Nor does the Alliance care that it has posted the signs illegally in the median strips of major intersections.

 

The Alliance contends the Fairfax County Board of Supervisors has raised property taxes illegally. Rather than cut the tax rate by five cents to $1.16 per $100 of assessed value, as the board did in April, the Alliance claims the county should reduce the rate to $0.76. Further, chimes in the Virginia Club for Growth in publicizing anti-tax tea parties in Fairfax County April 26 and in Loudoun County May 21, candidates for local office are being asked to sign the following pledge about the future to limit any future increases:

 

"I hereby pledge that I will not vote to increase total real estate property tax revenues in Fairfax County each year more than 5 percent, or the rate of growth of population plus inflation, whichever is higher."

 

Such pledges at first glance always seem simple. The rationale is that tax bills shouldn't rise and tax increases should be capped. The implication is that the government just cannot be using "all that money" wisely and, therefore, revenue cuts -- $560 million in Fairfax County -- won't keep government from doing essential things. Finally, the pledges suggest that even when elected by voters, office holders cannot trust themselves or be trusted to manage well. Representative government, therefore, must give way to ideological government with tenets set out by a small minority of citizens.

 

The problem, of course, is that these familiar Northern Virginia anti-tax zealots -- Arthur Purves, Peter Ferrara and James Parmalee -- really argue politics more than the law, and ideology more than economics. If these unyielding activists really thought Fairfax County has proceeded illegally, they would sue the county. Instead, their answer is the pledge, which not surprisingly has been signed by candidates they have put forward from their anti-tax wing of the Republican Party.

 

Free from the imperatives of economics, they can ignore facts. In their world, demand for services is static. The economic pie is finite. Counties need to live within the means of the people who live in them, they argue, without mentioning that residents of Fairfax County have the highest per household income in the United States. The Northern Virginia region's per capita income is the highest in Virginia and exceeds the national average by 35 percent. Unemployment in Northern Virginia now is 2.8 percent.

 

Property taxes are taking a bigger and bigger percentage of family income, they argue, without acknowledging that record low interest rate re-financings of home mortgages are saving Fairfax County homeowners savings of hundreds of dollars a month. Per-household income from federal income tax cuts and Virginia car-tax reimbursements have increased more than property tax payments, which also can be deducted from federal income taxes.

 

Homeowners in Northern Virginia, moreover, do not prefer that their property values stagnate or decline. Houses are investments, too. Citizens who demand the highest quality of services and actually see value-driven increases in property taxes as one of the only ways to keep up with exploding school enrollments and for property protectors, such as police, firefighters and public health professionals, to keep up with threats from snipers, terrorists and SARS. At the rate the anti-taxers advocate, Fairfax County citizens can see 76 students per classroom, 76 more trailers at county schools, libraries open 76 minutes a day and 76 police and fire fighter layoffs a month.

 

The most devout anti-taxers also ignore forecasts. Methodical, conservative economist Christine Chmura in Richmond, for example, projects that wages and salaries in Northern Virginia will rise by 4.5 percent in 2003 and by 7.9 percent in 2004. Retail sales are to rise by 7.3 percent in 2003 and 9.7 percent in 2004. Building permits rose 11 percent in 2002 and are forecast to rise another seven percent in 2003. These positive economic dynamics explain why a special public hearing by the Fairfax County Board of Supervisors to hear citizen complaints against increased property tax bills drew only six anti-tax acolytes in opposition to the proposed five cent reduction.

 

For the record, trying to throw a Boston Tea Party blanket over little green and red signs also misses the point of the "taxation without representation" protests of 1773. There was plenty of representation in an 8-2 vote by elected supervisors, just not the result the zealots wanted. Since contributors to Bacon's Rebellion are required to know their protests top to bottom, I would add that the British back then actually thought the colonists would go for the lower overall price of tea that came from cutting out the middlemen, even though a tax was involved.

 

Finally, the "76" sign actually conjured up for some not the Boston Tea Party, but the more classic image of the card in the hatband of the Mad Hatter at his tea party in Alice in Wonderland.

 

"Have you guessed the riddle yet?" the Hatter said, turning to Alice again. "No, I give it up," Alice replied: "that's the answer?"

 

"I haven't the slightest idea," said the Hatter. "Nor I," said the March Hare.

 

Alice signed wearily. "I think you might do something better with the time," she said, "than waste it in asking riddles that have no answers."

 

If anti-tax Republican candidates for the Fairfax County Board of Supervisors are going to tap into a deep well of taxpayer resentment in November, they'll have to spend a lot more time and money finding or filling a well. Of course, by fall they may have moved on to the Queen's croquet ground, a very different chapter, indeed.

 

-- April 28, 2003

              

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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J. Douglas Koelemay

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