Monday, November 3, 2008

Meals Tax Media Coverage Smorgasboard...

In case you missed some of our handiwork from the past three weeks since we launched LCAFT on Oct 14th, we wanted to provide you with some good reference materials giving an overview of some of our efforts to educate Loudoun voters and raise awareness of the food tax referendum...its been a busy 21 days!

LCAFT MEDIA COVERAGE:

CBS Channel 9/WUSA (aired Oct 23) - Nicholas Interviewed
http://www.wusa9.com/news/local/story.aspx?storyid=77492&catid=188

Leesburg Today: "On the Ballot: Meals Tax, Bond Questions"
http://www.leesburgtoday.com/articles/2008/11/03/news/fp373electionquestions103008.txt

Loudoun Times Mirror: "Coalition: Meals Tax Not a Happy Option"
http://www.loudountimes.com/news/2008/oct/28/coalition-meal-tax-not-happy-option-restaurant-own/

Washington Post's "Loudoun Extra!": "Stick a Fork in It, Say Meals Tax Opponents"
http://loudounextra.washingtonpost.com/blogs/living-loco/2008/oct/16/stick-fork-it-say-meal-tax-opponents/

Connection Newspapers: "Meals Tax Debate - Coalition Forms to Defeat Meals Tax on November Ballot"
http://www.connectionnewspapers.com/article.asp?article=321155&paper=83&cat=104

Loudoun Times Mirror: "Group: Tax Targets Reeling Restaurants"
http://www.loudountimes.com/news/2008/oct/15/coalition-opposed-meals-tax-created/

Leesburg Today: "Coalition Formed to Oppose Meals Tax"
http://www.leesburgtoday.com/articles/2008/10/14/news/fp385meals101408.txt

Loudoun Times Mirror: "Tax Worth a Mouthful"
http://www.loudountimes.com/blogs/loudoun-mouth/2008-10-14/tax-worth-mouth-full/

The Examiner (DC): "Loudoun County Residents to Vote on Meals Tax"
http://www.dcexaminer.com/local/33729644.html

Washington Post - Nicholas' Letter to the Editor, "Send This Meals Tax Back to the Kitchen"
http://loudounextra.washingtonpost.com/news/2008/sep/28/letter-editor-send-meals-tax-back-kitchen/

Leesburg Today - Nicholas' Letter to the Editor, "Half Baked"
http://leesburgtoday.com/articles/2008/09/26/opinion/letters/alet345graham092608.txt

Loudoun Easterner - Nicholas' Letter to the Editor, "Against Food Tax"
http://www.easterner.com/cgi-bin/storyviewnew.cgi?059+OpinionLetters.20081021-3538-059-059011.Full+OpinionLetters

Loudoun Times Mirror - Nicholas' Letter to the Editor, "Vote No on Meals Tax Referendum"
http://www.loudountimes.com/letter/archive/2008/11/

Washington Post – Patricia’s Letter to the Editor
http://loudounextra.washingtonpost.com/news/2008/oct/02/letter-editor-dedicated-meals-tax-bad-way-govern/

Connection Newspapers – Patricia’s Letter to the Editor
http://www.connectionnewspapers.com/article.asp?article=320584&paper=83&cat=110

Loudoun Times Mirror – Patricia’s Letter to the Editor
http://www.loudountimes.com/letter/1182/

Connection Newspapers: "Meals Tax Debate"
http://www.connectionnewspapers.com/article.asp?article=321155&paper=67&cat=104

WTOP News (aired Oct 28)
http://www.wtopnews.com/?nid=732&sid=1506124#

FOX 5/WTTG-TV Story (aired Oct 28):
http://www.myfoxdc.com/myfox/pages/Home/Detail;jsessionid=0A891DECB08085760707CB212B9DFF1B?contentId=7739809&version=2&locale=EN-US&layoutCode=TSTY&pageId=1.1.1&sflg=1

** Patricia and I also did separate on-camera interviews with NewsChannel 8 on Oct 28th & Oct 31st, as well as WMAL radio on Oct 28th...

Statements from the LCAFT Press Conference...

Here are the statements from Nicholas and Patricia for the LCAFT press conference at The Dock Restaurant...

LCAFT PRESS CONFERENCE
THE DOCK RESTAURANT – Oct 2008
Remarks by LCAFT Co-Founder, Nicholas Graham

Thank you very much Patricia, a great fighter for the taxpayer in Loudoun

I would also like to extend my thanks to the owners of The Dock Restaurant – a wonderful place to eat and be merry – with delicious specials every night, I might add.

And I’d also like to thank our Coalition members for being here today.

I should also add that Patricia and I are leading this effort – not because we are angling for a better seat at our favorite Loudoun restaurants – but because it’s the right thing to do.

Loudoun voters would be well-served to vote down this untimely, unfair, and punitive new tax on Election Day.

Don’t think of this tax as four cents on the dollar, or $1 on a $25 dollar meal. Think of it as potentially $400 or $500 dollars every year on a family of four that has to eat on the go several times a week.

For a working family with two spouses juggling jobs and kids making $30,000 a year – that’s a huge chunk of money. And it’s wrong.

For us, this ballot question isn’t about how the money will be used, it’s about how it’s collected and from who. It’s the principle of the issue.

It’s about a tax that will penalize our working poor, and our seniors and disabled - most of whom live on a limited, fixed income and depend on prepared or delivered foods.

It’s about a tax that will single-out a hard-pressed industry – our small business restaurants, where pennies on the dollar DO make a difference.

It’s about an immediate, almost doubling of the tax rate on foods we eat on the run, and prepared foods in stores – we already pay 5% of state sales tax, this is additional 4% on top of that.

It’s about a tax that comes at the worst time for our families and small business restaurants – profit margins are dwindling, as are our 401Ks, IRAs, 529 college funds and food budgets.

But what I want to focus on today for one minute is the far-reaching and wide-ranging impact of this tax.

I believe the County has done the citizens of this County a fundamental disservice by not being totally transparent in terms of where this tax will be collected.

By way of example, the County’s own “Fact Sheet” on the food tax that is totally deficient and unacceptable in describing where exactly this new food tax will apply.

The County says the tax will be collected in “restaurants” and prepared foods sold in grocery stores and convenience stores. But it goes no further in defining what those are.

Now, the City of Roanoke here in Virginia also has a ‘prepared food and beverage tax’ as of July 2005. But they believe that such a tax can be collected from the following places (read list)

That’s quite a list. We challenge the County to spell out exactly for all of us if it plans to do the same here – and, if so, why is this level of detail not spelled out on the County’s Fact sheet or website? It’s simply a matter of democratic transparency to us, and clear governance.

But if the County hasn’t told our citizens the full, wide and varied extent of this tax – we will do so here, with what we call our “Menu of Meals Tax Monstrosities”.

And this is the reason why the nickname for our coalition is called “The Happy Meal Rebellion”.

The last thing I’d like to quickly address this morning is a matter of what I believe to be tax policy inconsistency by the County government.

It appears as though our County Board has had a change of heart. After agreeing this Spring to a new series of business license fees and taxes in Loudoun called the BPOL fees, the County Board actually voted last week to reverse course and decline to adopt these new tax and fee hikes.

In doing so, according to the text of the story by Ashburn Today, those voting down the new BPOL fees and taxes “…said changing economic conditions make it unwise to increase taxes on the County’s businesses.”

We couldn’t agree more…

So the question is, why the double standard in how the County views tax policy on our businesses?

If they believe now is not the right time for BPOL fee and tax hikes – and the Chamber agrees – how is a food & beverage tax any less onerous on our small business restaurants?

It just doesn’t make sense to me. Both BPOL and a meals tax will have the same chilling effect – both are wrong, both should be opposed.

At best, this is simple careless inconsistency. At worst, its a faulty, double-standard. Either way, our small business restaurants are getting the short end of the stick -- or the knife.

Speaking of knives - you can slice-and-dice the meals tax all you want. But – in the end – we urge voters to reject this untimely and unfair tax, and stick a fork in it on Election Day!
Thank you...
Press Statement
Patricia Phillips, co-founder
Loudoun Coalition Against the Food Tax
October 2008

You have heard some members of the Board of Supervisors explain the desire to “diversify the source of taxes”. That sounds like good thing to do, doesn’t it? It sounds like the familiar investment advice: to diversify your income. So the instead of just depending on residential real estate taxes, we’ll also pay this food tax. Although residential real estate tax is the large source (50%) of the local tax revenue in the county, it is hardly the only tax. There is also:

· Local Sales Tax --
· Motor Vehicles Fuels Sales Tax (2% for Northern VA, on top of the gasoline tax which goes to the state)
· Utility Consumption Tax --( electric, natural gas)
· Communications Sales and Use Tax, (phones, cable and internet)
· Transient Occupancy Tax (Hotel/Motel)
· Daily Vehicle Rental Tax (car rental)

So does adding one more tax; to restaurant meals and prepared food really serve any benefit in further diversifying the revenue stream?

Not likely, because those six taxes I mention are just the local taxes paid by the “consumer” – to which the meals and prepared food tax would be the seventh.

The county also collects:

Residential real property tax
Commercial real property tax
Personal property tax (cars)
Business license tax, (BPOL)
Public serve corporation franchise license
Recordation & wills
Vehicle decals,
Machinery and Tools tax
bank franchise tax,
public service cooperation franchise license

Now as far as the $13 million the county Board of Supervisors hopes to raise from this tax, -- it equates to 1.6% of the county’s revenue – just from local taxes – not including any transfers the from the feds or the state. $13 million is the same amount raised from the fees for recordation and wills – so they got you coming and going – they want to tax you to eat and then when you die and stop eating they tax you again.

I reject the notion that the County board cannot prioritize the budget to economize 1.6% of funding. This proposed tax is a ruse to help you feel better about voting to tax yourself more, by saying it will go to school construction and debt service.

I wonder how many schools $13 million will build. On the same ballot next Tuesday, we vote on two school bond referendums. One is for $21 million for an elementary school and the other $82 million for the high school. That totals over $100 million. $13 million doesn’t help much there, just over 10% of the construction needs this year.

This is just an “easy way” to raise a little more money. There is no benefit of adding one more tax except to squeeze a more of the taxpayers hard earned money.
Thank you...

Get the fork out...

...it's Election Day (finally!), and it's time to send this meals tax thing back to the kitchen.

It's been about ten days since our last post, and we've sure been busy. The Coalition has been canvassing voters, sporting our "No Meals Tax" buttons, marching in the Leesburg Halloween parade, writing "Letters to the Editor", and raising awareness everywhere we can - especially with the Loudoun and DC-area press corps.

The Coalition also held a very successful press conference on Tuesday Oct 28th at The Dock Restaurant in Lansdowne (thanks to the great owners, Rick and Scott, for their hospitality). The Loudoun Times Mirror and Leesburg Today attended, as did Channel 5/WTTG and NewsChannel 8. Patricia and I also spoke that day to WTOP and WMAL radio. Attending were Rick of The Dock Restaurant, as well as Supervisor Eugene Delgaudio, Leesburg Councilman Ken Reid, and taxpayer advocate Jim Parmelee.

On Friday Oct 31st, Patricia took the time to appear on a special 30 minute program at News Channel 8 studios in Arlington to advocate for taxpayers for a story about the food tax referendum here in Loudoun (we're still hunting down the video...)

And, as you'll recall from several posts ago, we also took our case to a well-attended public hearing of the Loudoun County Board of Supervisors on Oct 20th.

Our work is almost done - but we've got one more day left. So we urge all of you - especially our Coalition members - to get out there and vote, and encourage your friends and neighbors to vote as well. We need your support to ensure the defeat of this referendum. We don't need to restate the reasons - those are clearly laid out here in numerous statements and posts. We just need to give our effort one last push and burst of energy to send the strongest and clearest message possible.

Remember - VA polls are open from 6am to 7pm.

Patricia and I will post a media statement here tomorrow evening once returns come in and the results on the food tax referendum becomes clear...

Wednesday, October 22, 2008

The "Happy Meals Tax" Rebellion - on Ch 9 WUSA-TV!

UPDATE: Here's the link to the story:
http://www.wusa9.com/news/local/story.aspx?storyid=77492&catid=188

I am happy to report that Channel 9/WUSA-TV is doing a story tonight on the food tax referendum here in Loudoun County. Peggy Fox and I spoke for a few minutes on camera at The Dock Restaurant in Lansdowne today (The Dock, by the way, is a proud founding member restaurant of our LCAFT organization -- and thank you to the owners, Rick and Scott, for helping out and being hosts for today's on-site media interviews).

The teaser that Peggy will use as the lead-in to her story is great for us and LCAFT...she notes that "there is a meals tax referendum in Loudoun county, and opposition is building". Hurrah!

I believe Peggy also spoke to Leesburg Town Council member (and LCAFT member) Ken Reid (thanks, Ken!) and to Supervisor Andrea McGimsey on the BoS. The story will air first at 5pm, and will be posted at http://www.wusa9.com/ (you also might want to check the "Virginia" tab too in case it ends up there). It might air at 6pm and 11pm as well. Happy viewing!
- Nicholas & Patricia

Tuesday, October 21, 2008

Patricia Addresses the Board of Supervisors...

As promised per my post below, here is Patricia's eloquent and heartfelt statement below to the Board of Supervisors from Monday night...

Dear Members of the Board,

I am Patricia Phillips -- resident and taxpayers in Loudoun county the last 21 years. I am a co founder with Nicholas Graham of the Loudoun Coalition Against the Food Tax. I realize you have a very challenging job ahead of you to manage the county’s budget during an economic downturn. Everyone knew last year when you were running for office that there would be a very large drop in the real estate tax revenues due to the decline in home values, and that planning the budget would be a huge challenge.

I want to encourage you to make the tough choices necessary to balance our county budget. When I ran for State Senate last year, I took a leave of absence from my work which significantly impacted our family household budget. We found we could cut back significantly -- and stay a healthy and happy – We focused our income on core responsibilities food, shelter, clothing, But everyone in our family supported the effort, and no one complained.

If the meals tax is defeated – that gives you permission to cut discretionary program. We’ve got to fund necessities first, and leave for another day the non-essential but nice programs. But don’t put core responsibilities of local government first on the list.

Now certainly the population grew 68% since 2000 and the CPI increase 27.3%. THEREFORE, you would expect the Loudoun County Budget to increase – but the budget budget grew 2 and half times the combined increase in population and CPI – by almost 240%.

I suggest you begin with asking the budget staff to go back to the 2000 budget and increase it proportional to the population increase, and increase with the CPI – and use that for your baseline budgeting to deal with the austere challenges of this years budget.

Thank you…

Taking our Message to the Board of Supervisors...

Last night, Patricia and I went to the Loudoun Government Center to attend the Board of Supervisors' Public Hearing and Comment period. Since this would be one of our last opportunities to address the Board before the election, we wanted to air our views and make sure the public who were there and watched on local cable access knew we existed to protect the taxpayer and our small business restaurants, and knew that we forcefully advocated a defeat of the Nov 4 ballot referendum on the food tax.

I wanted to share with you the remarks I prepared (I could only use a portion of the below due to the 2 minute rule for remarks before the BoS, but thought I should post what I drafted in its entirety). I will post Patricia's remarks shortly as well... Nicholas

Nicholas Graham – remarks
Loudoun Board of Supervisors – Public Hearing
630pm – Monday, October 20th, 2008

As you may know, Patricia Phillips and I established a new citizens group here in Loudoun barely a week ago called the Loudoun Coalition Against the Food Tax, whose goal is to defeat the referendum that will appear on the November 4th ballot that allows for a new 4% tax to be imposed on meals, beverages, and prepared foods in grocery stores. Not to mention Starbucks, Happy Meals, Domino’s Pizza, Dairy Queen ice cream, movie popcorn, sub shops, and your favorite take-out orders from basically anywhere.

We are grateful that our non-partisan, independent Coalition boasts support across the community spectrum – with members from this Board of Supervisors, the School Board, the Leesburg Town Council, and three of the five Constitutional officers in Loudoun.

And I assure you we are not doing this to get a better table at the local restaurant that no longer places us next to the restrooms at the back. It’s just the right thing to do.

Now, I know that this County faces some very difficult choices. We are deeply understanding of that. We also know that there are many other local jurisdictions which are also facing a fiscal abyss – and many of them have chosen not to put such a referendum in front of the voters, as we have done here in Loudoun.

I completely respect that all of you and your able staff face painful decisions…and challenging decisions.

But placing a food tax on the ballot – and adopting it - is simply the wrong decision.

And here’s why:

1. I can think of no more onerous and punitive regressive tax that unfairly places more of the dollar-for-dollar burden on the low-income, working families here in Loudoun; not to mention the disabled and seniors – who absolutely depend on delivered foods and prepared grocery store foods more than the rest of us;

2. At a time when our collective IRAs, 529 college savings plans, 401Ks, and bank accounts are shrinking by the day – with gas prices still high, and with food prices soaring – an additional tax on one of our life’s necessities, food and beverages, is illogical, painful, and untimely;

3. Why are we unfairly singling out – in a discriminatory way – a specific industry in our county that is the economic engine for jobs, wages, and revenue – our small business restaurants? Even without the imposition of this tax, we’ve seen County gem after County gem close shop in just the past few months – such as Pacific, That’s Amore, CafĂ© Panache, Johnson’s Charcoal Beef House, Old Dominion Brewery Pub, Del Ray, Pepe’s, Casa Gonzalez – and the list goes on and on…

4. This would be an overnight doubling of taxation on food, beverages and prepared foods – a 100% tax increase: when you add 4% onto a food and beverage bill, you’re adding onto a bill that already has a 4.5% state sales tax, and then factor in 15-20% for a tip…and you’re already talking about a consumer facing a new bill which is 25-30% non-food related…and if there is going to be some trimming of the bill – you guessed it – it’s going to come out of the 15-20% given to the kind wait staff who depend on that to make a decent living.

5. the idea that eating on the go, or picking up prepared foods, is some kind of “luxury” is out of touch with today’s Loudoun working families – eating on the run is a necessity not just for busy moms and dads and their children, but for workers and crews during the day.

Make no mistake, diversifying our tax revenue base and building schools are goals we all share, of course.

But the real question is this: why would the goal of diversifying our tax base ever outweigh the goal and real need to protect the poor and indigent of this County, our tax-paying working families, as well as our small businesses?

By making this referendum a Machiavellian choices, a Hobson’s choice between either holding down taxes in treacherous fiscal times OR increasing funding for school construction, this referendum’s only accomplishment come Wednesday morning November 5th may end up being to ensure that these two fundamental goals become “mutually exclusive” in voters’ minds from this day forward.

When this goes down to defeat, as it has twice before – and the Coalition is working tirelessly day by day to ensure that history does, in fact, repeat itself – I’d respectfully submit that the Board should have considered creating a specific tax jurisdiction encompassing Dulles International Airport to carve-out a more targeted revenue stream for the referendum’s end goal, instead of sniper-targeting the small business restaurant industry – or busy, working moms and Loudoun’s low-income citizens and seniors.

Instead of focusing on “diversifying tax base”, why not re-focus on the goal of diversifying the options in which we can all begin to limit spending, reduce waste, and place a cap on the growth of certain programs and bureaucracies here in Loudoun?

We as Loudouners are forced every week, and every month to balance our budgets around the kitchen table.

We simply ask you to fulfill your role in making the same tough decisions that working Loudouners have to make – and balance the county budget at this table right here, every year.

Thank you very much...

Saturday, October 18, 2008

A picture's worth a thousand words...





Almost a week ago, The Washington Post did a story about the meals tax in Loudoun - a piece, unfortunately, heavily biased towards those in favor of this unfair tax on Loudouners - and the photo editors saw fit to attach a nice picture of one of the many schools in our County under construction.

Of course, ALL of us at LCAFT are in favor of properly educating our children, and ensuring they have the school space to get that education. Sadly, the Board of Supervisors saw fit to turning this referendum into a macabre Machiavellian choice between constructing schools or increasing onerous and painful taxes on one of life's core necessities - food.

But building schools at the singular and discriminatory expense of a specific (and troubled) industry in our County - our small business restaurants - is just plain wrong.

So, for any future Washington Post stories that focus on the meals that and require a visual, we hope the discerning editorial eye will consider the pictures above - worth, as the title of this post states - "a thousand words"....or, more like 1,040 -- if you impose a 4% excise on it.
- Nicholas