Ritschel not seeing all the benefits of higher taxes

Here’s an intriguing story from the Journal Star. It’s in regard to a request from City staff to raise sales taxes downtown to help repay general obligation bonds that will be used to build a new Mariott hotel:

Civic Center officials believe an extra 1 percent sales tax on concessions and catering could put the Downtown sports and recreations center at a competitive disadvantage compared to other nearby facilities . . . .

Ritschel said the 1 percent tax would generate approximately $30,000 a year for the Civic Center, which is less money than they anticipate losing to East Peoria and elsewhere because of the extra tax.

Peoria and East Peoria tax similarly when it comes to hotels, food and beverage sales, Ritschel said, so the extra 1 percent would make the Civic Center “more uncompetitive.”

Perhaps someone from the museum group can explain to Ms. Ritschel and the rest of the Civic Center officials the big benefits of higher sales taxes. They spur economic growth; they don’t hurt it. The new Marriott downtown will bring jobs and be like our own little stimulus package. And besides, it’s so cheap — only $1 for every $100 spent. How much does the average person spend on concessions downtown? $25? It’s only going to add an extra quarter to your purchase! Pocket change, dude. They must just be naysayers who don’t want to see progress in Peoria.

Obviously, I’m poking fun at the arguments given for the museum sales tax. But all sarcasm aside, I actually agree with Ritschel on this issue. The same thing that Ritschel fears will happen with a 1% sales tax increase will also happen if voters approve a .25% sales tax increase in Peoria County to pay for the proposed downtown museum. It will make us less competitive and drive more business across the river and elsewhere. Did you catch the phrase she used? She said a tax increase would make the Civic Center “more uncompetitive.” In other words, there’s already a tax disparity, and adding to it is just going to exacerbate the problem.

Did the Bradley professors take the cross-border effect of tax disparity into account when they did their economic analysis of the museum project? I’ve added that to my list of questions to ask when we meet. I expect a call soon to set up a meeting date/time.

42 thoughts on “Ritschel not seeing all the benefits of higher taxes”

  1. CJ, I’m trying really hard to see your beef about the 25 cents on every $100.00 spent increase in sales tax, – but I don’t get it. Seriously, dude, who is going to gripe about another quarter? If it dropped out of my pocket I’m not sure I would exert the effort to pick it up. Some friendly advice – concentrate on the other aspects of the plan you don’t like…

  2. “Seriously dude, who is going to gripe about another quarter.” people who don’t have a quarter to spare. The state is 9 to 11 billion dollars in the hole. Taxes are going to go up statewide; when you hit a 9 billion dollar deficit there really is no other option. Now is not the time to be raising local taxes for funzies.

  3. You all need to be directing your concerns to our President, who is not spending a nickel here, a dime there.. but a billion here, a trillion there. Now THAT’s some REAL MONEY.

  4. Beancounter: It isn’t about a quarter here or there, it is about who is doing what with it. Our political “leaders” learned long ago that taking little bits from people is easy and we hardly ever complain. But when you take 25 cents from every person in the US and stuff it in your pocket, it isn’t the 25 cents you took from me, but the $75,000,000 you just stuck in your pocket. I don’t want the PRM sticking my 25 cents in their pockets.

    In case you haven’t figured it out yet… it is the principle that has kept our economy running for the past 50 years.
    For example, if I add a $1 fee on the sale of automobiles, and who would notice that? (Just one extra dollar on every car) I make about $10,000,000.

    I did an interesting graph yesterday. I plotted the number of people working in this country vs the amount of income they earn.
    234,038,000 people working
    average income ~ 32K
    approx 5% earn 100,000 or more
    of that 13,200,000 only 1,324,000 (or .5% of the total) earn more than 250,000 per year
    80% of that group earn less than 150,000

    Gosh if each of those in the top .5% of our population each gave me 10 cents… I could join them in being in the top 5% of our population.

  5. Diane Vespa sez: “You all need to be directing your concerns to our President, who is not spending a nickel here, a dime there.. but a billion here, a trillion there. Now THAT’s some REAL MONEY.

    I say: Really? Where have YOU been the last 8 years when billions were spent? (and they weren’t spent here)

  6. Diane — The twenty-five cent argument is nothing but spin. It’s an argument designed to deflect attention from the real cost ($35-40 million) and the debate on whether this is a good expenditure of public funds. By your logic, it doesn’t matter what they want to tax us for because it’s a negligible amount. If that’s the case, then can we pass a referendum giving me $40 million for my own personal use? I mean, it will only cost you a quarter, and you’ll never miss it anyway. How about it?

  7. Oh, and Diane, as soon as President Obama puts these bailouts on the ballot as a binding referendum, I’ll be happy to take up the charge to defeat them. Until then, I’ll work on something a little bit more attainable.

  8. C.J.

    There is no such thing as a national binding referendum for bailouts, taxes, or any other issue. The closest you get is the Presidential election and you get so much more than simple tax and bailout issues at that election.

  9. A more attainable issue would be recalling elected officials after they have shown some level of corruption or have not shown support for the elective body that placed them in office.

  10. mahkno sez: “LOL… only a Republican could call $10 Trillion debt under Bush, ‘Petty Cash’.”

    I say: ROTFLMAO Wow How they forget so quickly….sometimes.

  11. Attainable issue #4

    Get rid of partisan control over redistricting. Put the process in the hands of a no partisan technical process that draws districts by computer data and does not see party or demographic data: just the number of persons in the locality.

  12. PC– I can’t tell if you are intentionally or unintentionally missing my point. Obviously there is no process for a national binding referendum. I was responding to Diane’s comment that we should be “directing [our] concerns to our President,” by saying I am concerned, but that we don’t have the same opportunity to impact those decisions as we do local referenda.

    And I don’t agree that any of your flurry of other issues are more obtainable than simply informing voters of reasons they may not want to vote for this sales tax referendum and encouraging them to vote no. You seem to be muddying the waters for reasons that are equally murky.

  13. Just $1 (per $100)? Ever hear of the straw that broke the camel’s back? You just keep piling on one “little” tax after another – on a very sick economy – and who would guess what is going to happen? I keep telling you, the party’s over, folks. The govt. needs to tighten its belt for a change. We need more producers and less parasites.

  14. C.J. You said … as soon as President Obama puts these bailouts on the ballot as a binding referendum, I’ll be happy to take up the charge to defeat them.

    We now know there never has been such a remedy for the citizens of the USA.
    Your willingness to pursue a non existent remedy is puzzling.

    If the issues I have put forth are not worthy (attainable) then so be it to those who feel that way.

  15. PC — I know there’s no such thing as a national referendum for bailouts or taxes — that was my point. Like I said, I was explaining to Diane that we don’t have the same opportunity to impact national decisions as we do local ones. In other words, the voters in Peoria can’t directly decide how the President and Congress spends our money, but they can directly decide whether or not to raise the county sales tax by 1/4%. The referendum is on the ballot for April 7.

    Thank goodness I didn’t say something like, “I’ll vote yes on this tax increase when pigs fly!” You no doubt would have treated me to a biology lesson on the incapacity of pigs to fly and chastised me for waiting for such an impossibility to occur.

  16. CJ, Who would have ever thought that we would have fish that fly in the Illinois river? Next, we may see a pig that can do the same, maybe even do loops over City Hall. Anything is now possible.

  17. CJ, hopefully you realize I am playing Devil’s advocate. I believe the massive unprecedented spending of taxpayer wealth by the Obama Admin. will work against your efforts to affect a “No” vote on the museum tax referendum in April. By then, citizens will be immune or numb to the prospect of a few measly million dollars of Government (taxpayer) spending. It’s a new world.

  18. Our pig is giggling about being a congressional representative, having two homes, traveling on Air Force One… wearing long pants…

  19. “Folks can affect the situation by voting for or against the office holders”
    HAHAHAHAHAHAHAHAHAHAHAHA

    Speaking of one liners, now that Michael Steele, Sarah Palin and Bobby Jindal have all fallen flat on their faces as spokesmen for the Republicans… it looks like our girl Aaron may be the next in line for that honor!

  20. If you heard any of his appearance at the conservative forum, you will believe that dreams can come true. He won’t run of course, he has much too much personal baggage, but he will be the the Annointer of the next candidate.
    He actually thinks it is HIS party.

  21. Diane,
    I don’t know about your last comment[s]. People in the U.S. feel that fed/sate taxes are a foregone conclusion. Fed/state spending the same. You know…death and taxes? I realize there may not be a massive voter turnout for the ‘museum’ referendum, but I agree with C.J. on this. The new sales tax is a matter for local [county] consideration. People [might] see this as a chance to REALLY make their vote count for something…….?

  22. A friend, who works at the Pere, commented that whenever Christian groups are at the civic center, the internet and pay for view porn usage goes up in the hotel.

  23. PC: My friend can beat up your friend

    wacko: thanks… I think much of what I write goes… ZIP… right on by…

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