Why I Oppose voting for 1A; a sales tax increase
Sales Tax A Regressive Tax on Lower Income Families
Sales Taxes are Regressive in nature; they disproportionately affect low income earners taking a far greater % of their income than the wealthier groups.
Sales Tax Can Lead to Higher Prices for Goods
The unintended consequences of sales tax increases may cause businesses to raise prices for lumber supplies, retail shopping, restaurants, sporting goods, hotels, cars, and retail marijuana.
Employers and Visitors Forum Shop for Lower Tax Jurisdictions
Employers want their entities and employees to be in communities with low sales taxes, a reasonable cost of living, and essential services. Increasing sales taxes could lead to forum shopping for lower tax cities. Durango could lose customers, employers, and others to Bayfield, Cortez, and Pagosa Springs
Deterring Boomerangs to Choose Durango to Live
Durango needs desperately to attract a demography of 25-39 year age group that are forming families, starting businesses, and buying homes. Over half of home purchasers are in this age group. Their spending on housing, health care, and higher education is substantial. We want them to seek Durango as a place to live and to work. Our motto is “live hear work here”.
Revenue is the Issue and the Answer
The city collected $2,527,203 in Sales Taxes in the month of January 2018 compared to $2,480,216 this year (2019) about -1% decline year over year. The realty is our top line is not growing. In fact, growth is flat to zero. If that doesn’t change direction soon, we’ll be in the same situation 2 or 4 years from but saddled with a combined sales tax of 8.4% if 1A is passed. There’s a better way.
Establish Business Growth Districts
Our business districts are clearly defined. South Durango provides 36% of the sales tax base, the Central Business District 31% of the sales tax base, and North Durango 13%. The opportunity exists in North Durango in particular for economic development.
I believe government doesn’t drive the economy but it can fine tune it through focus, priorities, and goals.That’s the facilitation the city council needs right now-today to align our business districts for the common purpose of growth, low taxes, and marketing Durango as a business opportunity zone.
My business is local as an Investment Adviser so my success depends on our city’s success. My focus if elected is measuring my own success as a Councilor to create more jobs, more paychecks and for the coming years of students- higher enrollment rates in Fort Lewis. The future can be bright if we take the difficult steps today; we’ll do it together, we’ll do it thoughtfully, and we’ll be unyielding in that purpose.