Against the tax
Editor, The Commercial:
The recent Pine Bluff Commercial article update on the Go Forward tax initiative listed several accomplishments as well as forthcoming projects.
At the head of the list of projects forthcoming was a $3.5 million go-kart track to help make Pine Bluff a “Go to Attraction.” Really!?”
Missing from the article was a reference to — before and after tax revenue comparison showing how the Pine Bluff tax revenue base has grown as a result of the added tax. After all, it is going to be economic activity — job growth is what is going to lead to overall growth, not more taxes.
Independent reporting for Pine Bluff & Jefferson County since 1879.
I would think that the significant sum of money Go Forward has collected would have some strong, substantiated values attached to it to show the tax is a benefit. Oh, and by the way, Northwest Arkansas had a similar Go-Kart project put on hold — possibly due to not having numbers show to be a wise investment of taxpayers’ money.
Once again, let’s look at a few numbers related to the $3.5 million go-kart track investment.
Assuming a population of 47,000 people, $3.5 million amounts to a contribution from each man, woman and child of ~ $74.;
Assuming an asset life of 10 years, a rate of return of about 1.64% would be achieved if the go-cart track made $4 million on the $3.5 million investment and that’s above annual expenses. Most investments need a Return on Assets over 15% to make sense. How many of you have put it on your vacation “Google Search” for the nearest go-kart track?;
How many months out of the year are we talking about a chance of being busy to attain even a 1.64%?
In addition to this sales tax issue, a reminder that also on the ledger is a property tax increase to help fund our schools, which I think we all believe is a worthwhile cause.
To date, have we really gotten the bang for our buck from the Go Forward(?) tax? I think if we had, it would not be a question whether to continue.;
The scare factor of “what will happen without being taxed into the poor house,” I say, we’ll get to spend our money how we see fit — on economic activities that result in economic growth that best utilizes Pine Bluff’s shining assets.
MIKE LANKFORD,
PINE BLUFF