Buddy's 2 cents on taxes

We have got to weather this economic downturn. The basis for funding our city's services is a sales tax, which I consider to be a barometer of the wellness of our city. Right now sales tax collections are down because folks like you and me don't have the money to go out and buy the things we did in the past. In addition, unemployment is high. If we can't afford to buy the things we once considered essential, how in the world are we expected to cough up more money for taxes? And while we are talking taxes let me give you my definition of taxes versus fees: if I reach into my pocket and give you money for things I want to do it's a fee; if you reach into my pocket and take out money for something you want to do, it's either tax or theft and sometimes it's hard to tell which is which. Now don't get me wrong - there are things we expect from government and we need to pay for those services. But as your mayor, I promise you that if it walks like a tax and quacks like a tax I'm not going to try to convince you it's some other animal.

One more thought on taxes, tied to our economic recovery. The EDC and others have their elephant guns out, working hard to bring in those big companies that would bring hundreds, if not thousands of jobs to Colorado Springs, and I applaud their efforts. However, economic recovery is usually led by small businesses, and we have over 16,000 small businesses in our city - companies that have less than 50 employees. Many of these companies pay business personal property taxes - 2.5% annually on every table, chair, computer, etc used to run their business. While the business property tax provides less than 1% of the city's budget, some of these mom and pop businesses such as restaurants, beauty salons and others pay thousands of dollars annually for the priviledge of keeping their equipment - equipment they paid sales taxes on when they first purchased the equipment. This tax is also problematic for the EDC and their elephant hunt, as those large companies see this tax as an additional cost of doing business in the city. I'd like to see us start phasing this tax out, starting with a 2 year period where small businesses who are heavily invested in equipment will see a 50% cut in their taxes. I will bet you those enterpreneurs will re-invest back into their businesses, keep prices down, or maybe even hire new employees. All of this economic activity will have a positive effect on the city's sales tax receipts and will send a signal to the elephants, through the EDC and others, that Colorado Springs is a business-friendly city.