I would like to take the opportunity to make a few predictions and maybe stir some discussion. These are some of the directions I think the unemployment and tax situation in this country will be going.
First I do not care for the current bail out of bad business, it will only give a reason for more bad business in our financial and industrial sectors. I understand it but do not like it.
For now I feel our bailouts will not help the auto industry at all. Americans have little loyalty to our US products. They, for the most part, want inexpensive items regardless of where it is made. If the US auto industry folds with all of the industries that feed it, the unemployment levels with jump up significantly. Then add to this the soldiers returning from foreign deployment as the new government wants. I to want them to come home but we will need to plan for that increase in unemployment fillings. Even if they are on leave from jobs then the persons currently doing the jobs will be out.
Then looking at European countries and acknowledging a world market we can see where many countries have unemployment levels in double digits and all of this leads me to predict that ours will jump to 10% or greater for an extended period of time during the new presidents term.
This will of course lead to the need for higher taxes to pay for his projects and take care of the out of work citizens. His taxes will hit individuals as well as businesses. Companies, not wanting to lower their bottom lines and not being able to pass the increases on to customers in tough economic times, will be forced to lay off workers. Which will increase unemployment rates.
I also looked at individual income tax rates for European countries and found that almost all are higher than our 35% max here. Some are as much as 50% (this is total income tax) and they also have a VAT (value added tax) which is a tax on production costs passed on the the consumer and much like sales tax but it runs at rates like 19% for France. so the total tax burden can be close to 70% of ones income. This is unless I have completely misinterpreted the date but I have it here and it looks correct. So I predict that our income tax rates overall here, given the new administrations plans, will go up to 40-45% give or take. This is an overall average including state and local rates.
Monday, November 24, 2008
2009
Merry Christmas to one and all.
I would like to list some thoughts and ideas for the town for 2009. I do not think that next year will be as tough for the town as many think it will. It will be effected though by the DLGF when they give final approval of the 2009 budget which may not come until half way through the year and if they make significant reductions we may have some trouble.
My list of projects for 2009 start out with finishing the east interceptor to the sanitary sewer line. The money is already put aside and we really need this done. There have been rumbling in the county that more businesses want to locate at the 600w (mt comfort road) corridor from the airport down to US 40. With out sewer service this can not happen and they will not wait and with out some businesses coming in to Cumberland our taxes will get worse. Even with the cap they can go up since the state has not provided a vote for us to make a permanent change in the state constitution.
The Pennsy trail project has the funds sitting there as well and so does the Washington street rebuild and street scape projects. all should come into play in 2009.
New items I am looking at are the roads in Cumberland. I plan to work with the town manager to get a list of all roads from worse to good condition and hope to hit as many of them as the budget funds will allow. Now with this I am saying that many only need holes filled then grind the surface and put a top coat down which should last for 5+ years at least, I have been told. My hope is to get as many of those done as possible and each year after start to tackle a major or so a year. If President elect Obama gets his plans through to rebuild roads we should be able to get some of the big project done under that and use our local funds for smaller jobs. His plan should come in about the time we plan to tackle some of the bigger things. That also hinges on IF he gets it through and finds a way to pay for it.
I would like to list some thoughts and ideas for the town for 2009. I do not think that next year will be as tough for the town as many think it will. It will be effected though by the DLGF when they give final approval of the 2009 budget which may not come until half way through the year and if they make significant reductions we may have some trouble.
My list of projects for 2009 start out with finishing the east interceptor to the sanitary sewer line. The money is already put aside and we really need this done. There have been rumbling in the county that more businesses want to locate at the 600w (mt comfort road) corridor from the airport down to US 40. With out sewer service this can not happen and they will not wait and with out some businesses coming in to Cumberland our taxes will get worse. Even with the cap they can go up since the state has not provided a vote for us to make a permanent change in the state constitution.
The Pennsy trail project has the funds sitting there as well and so does the Washington street rebuild and street scape projects. all should come into play in 2009.
New items I am looking at are the roads in Cumberland. I plan to work with the town manager to get a list of all roads from worse to good condition and hope to hit as many of them as the budget funds will allow. Now with this I am saying that many only need holes filled then grind the surface and put a top coat down which should last for 5+ years at least, I have been told. My hope is to get as many of those done as possible and each year after start to tackle a major or so a year. If President elect Obama gets his plans through to rebuild roads we should be able to get some of the big project done under that and use our local funds for smaller jobs. His plan should come in about the time we plan to tackle some of the bigger things. That also hinges on IF he gets it through and finds a way to pay for it.
Thursday, November 20, 2008
current issues
The town council last night had the task of approving the town budget for 2009. I have stated in my campaign that I would do what I could to see the budget decreased and taxes lowered and this being my first budget process was no different. I feel we have done a fairly good job of reducing spending, or at least I have voted against spending on items I felt were not neccesary. I will say that most of the time they passed anyway with 4 other votes out there and only needing 3 of 5 to pass.
I felt with this budget that we had some carry over of money in some of the funds and that a 4% increase was not needed. The town financial advisor continues to maintain the stance that we need to ask for the maximum each year since the way the state has set up town finance.
The way it works is if you ask for 4mill in 2008 then the next year you can get an increase of x% (decided on by the state) but if you decline an increase and ask for 4 mill again or even less in 2009 then the next year (2010) you can only get the state maximum increase over the 2009 budget, say 4%. It can not go up 8% with a claim that you did not take the 4% in 2009.
I say we can get by with the same next year as this with out an increase and IF we need more in 2010 then we take the 4%, or what ever the level may be, and live with it.
At some point we have to stop the increases.
The financial advisor pointed out that 200k of the 2009 budget is from LOIT (local option income tax) but that is still a tax on the citizens.
Long story to the end, I voted nay on the 2009 budget but it passed anyway. That does not mean we have to spend it all, which I will continue to work on. I felt that if we make a good effort up front it will make the year easier to deal with.
What I have learned, and what most advisors won't tell you unless asked, is that if a major issue comes before a town, say is doubles in size in one year, the town can petition the state for an increase over the maximum once it demonstrates the reason why. So for now I felt we are in good shape and IF we double in size then we can ask for a larger increase WHEN that happens.
Thank you
Joe
I felt with this budget that we had some carry over of money in some of the funds and that a 4% increase was not needed. The town financial advisor continues to maintain the stance that we need to ask for the maximum each year since the way the state has set up town finance.
The way it works is if you ask for 4mill in 2008 then the next year you can get an increase of x% (decided on by the state) but if you decline an increase and ask for 4 mill again or even less in 2009 then the next year (2010) you can only get the state maximum increase over the 2009 budget, say 4%. It can not go up 8% with a claim that you did not take the 4% in 2009.
I say we can get by with the same next year as this with out an increase and IF we need more in 2010 then we take the 4%, or what ever the level may be, and live with it.
At some point we have to stop the increases.
The financial advisor pointed out that 200k of the 2009 budget is from LOIT (local option income tax) but that is still a tax on the citizens.
Long story to the end, I voted nay on the 2009 budget but it passed anyway. That does not mean we have to spend it all, which I will continue to work on. I felt that if we make a good effort up front it will make the year easier to deal with.
What I have learned, and what most advisors won't tell you unless asked, is that if a major issue comes before a town, say is doubles in size in one year, the town can petition the state for an increase over the maximum once it demonstrates the reason why. So for now I felt we are in good shape and IF we double in size then we can ask for a larger increase WHEN that happens.
Thank you
Joe
Thursday, November 6, 2008
Budget and the national economy
It is time again for the town to work on the annual budget. This will be for the 2009 calendar year.
We are in the process for negotiating a price for fire department coverage with Buck Creek Fire dept.
We have been advised by the town financial adviser that the budget for next year will include a 4 percent overall increase in the total. I have said before and stand behind it that "tax and spend" government does not work. I am going to work on possible ways to lower the proposed budget but according to the town we have to ask for an increase in case the state cuts some levels once the property value levels are finalized. I will oppose this budget if I can not get the levels down to what I feel are more realistic amounts. My predessor was instrumental in purchasing 325k worth of street cleaning equipment but made no provisions for labor, fuel or maintainence to run said equipment and so it has sat idle all summer. These kinds of things are what I want to eliminate from happening in the future.
We are progressing forward with the east sanitary sewer interceptor which will help secure some commercial growth. I will take a suggestion from Governer Mitch Daniels and tell it like it is. We have to have some commercial to offset our residential property taxes or we will be in big trouble. Commerical tax bases are at a higher level per sqft than residential but we will also need to frequent any businesses that move her so that it becomes advantages for them to stay and be good citizens.
We need to get a state constitutional amendment caping residential property tax levels to keep them from going back up as they have in the past here in Indiana. The only way for that to happen is to have the residents of the state vote to have it added. In order for that to happen it has to be put on the ballot by the state general assembly and they have to vote to have it put there. So I am asking everyone to call thier state representatives and senators, and voice our desire to have it become a proposal on a state ballot.
As for the national economy;
The trend in this years elections show that americans believe taxing the rich and big business is the way to go and have elected the person they feel can accomplish this. I could not disagree more. Large and small businesses are the ones who currently employ us all and have the control. They are not about to allow their bottom line to be reduced by taxes. They can and likely will just lay off employees and use what was their wages to pay the taxes. That will obviuosly increase unemployment levels in this country which will require those who still have a job to pay more in taxes to take care of those who are unemployed.
President elect Obama has little chance of succeding with his plans and will risk deepening and lengthening the recession. If corporations have to pay more taxes and it comes out of their bottom line they will look less favorable to investors which will cause their stock prices to drop.
When Senator Obama was running he stated that no one who makes less than 250k a year will see their taxes go up. This level simply will not work. As I see it, the total income of the richest 5% of americans together can not pay for his programs and now the cut off has been lowered to, I think, around 120k and he is not in office yet.
We are in the process for negotiating a price for fire department coverage with Buck Creek Fire dept.
We have been advised by the town financial adviser that the budget for next year will include a 4 percent overall increase in the total. I have said before and stand behind it that "tax and spend" government does not work. I am going to work on possible ways to lower the proposed budget but according to the town we have to ask for an increase in case the state cuts some levels once the property value levels are finalized. I will oppose this budget if I can not get the levels down to what I feel are more realistic amounts. My predessor was instrumental in purchasing 325k worth of street cleaning equipment but made no provisions for labor, fuel or maintainence to run said equipment and so it has sat idle all summer. These kinds of things are what I want to eliminate from happening in the future.
We are progressing forward with the east sanitary sewer interceptor which will help secure some commercial growth. I will take a suggestion from Governer Mitch Daniels and tell it like it is. We have to have some commercial to offset our residential property taxes or we will be in big trouble. Commerical tax bases are at a higher level per sqft than residential but we will also need to frequent any businesses that move her so that it becomes advantages for them to stay and be good citizens.
We need to get a state constitutional amendment caping residential property tax levels to keep them from going back up as they have in the past here in Indiana. The only way for that to happen is to have the residents of the state vote to have it added. In order for that to happen it has to be put on the ballot by the state general assembly and they have to vote to have it put there. So I am asking everyone to call thier state representatives and senators, and voice our desire to have it become a proposal on a state ballot.
As for the national economy;
The trend in this years elections show that americans believe taxing the rich and big business is the way to go and have elected the person they feel can accomplish this. I could not disagree more. Large and small businesses are the ones who currently employ us all and have the control. They are not about to allow their bottom line to be reduced by taxes. They can and likely will just lay off employees and use what was their wages to pay the taxes. That will obviuosly increase unemployment levels in this country which will require those who still have a job to pay more in taxes to take care of those who are unemployed.
President elect Obama has little chance of succeding with his plans and will risk deepening and lengthening the recession. If corporations have to pay more taxes and it comes out of their bottom line they will look less favorable to investors which will cause their stock prices to drop.
When Senator Obama was running he stated that no one who makes less than 250k a year will see their taxes go up. This level simply will not work. As I see it, the total income of the richest 5% of americans together can not pay for his programs and now the cut off has been lowered to, I think, around 120k and he is not in office yet.
what we have done this year.
Well, it's been quite a while since I posted here. I believe I will try to use this avenue of communication more often and try to get the word out to look here for things going on in Cumberland. We have a great many tasks coming up and it is difficult to get the information out to district 5 residents.
I was able to pass an ordinance requiring building permit applications to be accompanied by a letter from the HOA for the residents neighborhood, stating that the work in question meets the association covenants.
Also i was able to secure changes to the town building code to be more precise on what is required and a more stringent path for recourse if the codes are not met. For example, it is now required in the code that the work that is done is the same work that the permit is pulled for. Changes to the plans now require review by the town to ensure that the permit is updated.
Joe
I was able to pass an ordinance requiring building permit applications to be accompanied by a letter from the HOA for the residents neighborhood, stating that the work in question meets the association covenants.
Also i was able to secure changes to the town building code to be more precise on what is required and a more stringent path for recourse if the codes are not met. For example, it is now required in the code that the work that is done is the same work that the permit is pulled for. Changes to the plans now require review by the town to ensure that the permit is updated.
Joe
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