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Monday, November 5, 2007

Editorials

 

           

On taxes, pick
your poision

Columbus County residents will have a chance tomorrow to approve or deny a referendum that would allow the county to levy a quarter-cent sales tax to replace money the state will take for Medicaid reimbursements.

The state will take a quarter-cent of sales tax revenues that counties collect now to cover Medicaid costs.

Beginning this year, the state will assume responsibility, over a three-year period, for Medicaid reimbursements that counties have paid – unfairly – for years.

Poor counties like Columbus have paid a disproportionate share of Medicaid reimbursements compared to wealthier counties because of the numbers of people here living below poverty level.

The action will ultimately save the county money, but then, how will the county’s sales tax revenue be replaced?

One option is the quarter-cent tax sales that county residents will vote on tomorrow. The other is through property taxes.

Even with the break from Medicaid, the county needs revenue sources because it is just about broke.

We endorse the quarter-cent sales tax because those who own property can’t keep footing the bill year after year. With a sales tax, even though some consider it regressive, everyone pays; plus, revenues are collected from out-of-towners who spend their money here.

Money from the quarter-cent sales tax should go directly in a capital improvements fund. No capital improvement fund exists now. Without a capital fund, the county can’t hope to improve infrastructure or fund school construction if the general fund is in desperate financial condition year after year.

Paying more taxes isn’t particularly appealing to anyone; yet, voters will have to determine Tuesday what poison they’ll choose.