Tax increase, fair or foul?

The Austin American Statesman’s Editorial “No such thing as ‘minimal’ tax hike”

is aptly named. It uses City Manager Marc Ott’s $2.8 billion budget proposal as a backdrop for discussing Austin residents’ annual taxes, which are anything but inexpensive per Rodolf Gonzales. Gonzales beseeches the City Council members to truthfully divulge the extent and rate of residences’ annual taxes and accordingly, to consider them when proposing tax hikes. Currently, Austin residences annual taxes include property taxes, city taxes (e.g. for local school districts), utility fees and taxes that pay for city employees’ salary, including raises. Gonzales concludes, what appears to be a superficial tax hike in reality has a significant impact on people’s total taxes. Considering the hardship a “minimal” tax hike would have on Austin residence, some of which are unemployed and struggling in today’s economy, Gonzales proposes postponement of the anticipated “2 percent across-the-board pay raises for regular city employees, the mayor and council members.” This would significantly reduce the tax burden for Austin residences.

            This editorial is important because it illustrates the need to be educated and involved in local government. Additionally, the editorial’s lesson, minimal is sometimes considerable, translates to other topics as well.