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 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.
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...
No comments:
Post a Comment