The Taxman Cometh

Politics and Economics

Congressional Republicans currently favor extending the Bush-era tax cuts for the wealthiest Americans while criticizing the Democrats for creating budget deficits. But you can’t have it both ways. The increasing gap between the rich and the poor in America has destabilized the economic and political system. The rich get to play fast and loose with the tax system at the expense of poor people and public infrastructure during the last decade. They profited from Wall Street shenanigans and the re-institution of war profiteering. Now it’s time to wind down the wars and pay the piper. If Democrats hold the feet of the wealthy to the fire, they might survive the mid-term elections.

Aqui en Taos, the county commission recently voted to approve the state mandated property tax increase, due to the accelerated sale of school bonds. Back when the taxes for school bonds were passed, the board and its promoters, including this former publisher, promised there would be no increase in property taxes but merely an extension of an existing tax. The board and their alleged experts or promoters have sandbagged us, the public. Though “good intentions” may have been the motive—hurry up and complete the renovations—the result is an economic and public relations disaster for property owners and other government entities.

Though the TMS board is dithering—i.e. taking no responsibility for the disaster so far—local citizens have acted. “We have suspended TMS board member Arsenio Cordova from voting in the Chicano Chamber of Commerce,” said President Juma Ali Archuleta, the Disappeared Barber. “We supported the bond like 90% of the voters but based on “no increase in tax rates.” It’s time for Arsenio to stand up and take some heat.” Archuleta, the executive officer of the organization, said, “It is also within my powers to put Councilor Gene Sanchez on administrative leave from the organization. He’s promoting an increase in GRT at the Town of Taos but tried to sneak the tax without a public referendum.” Questioned closely, Archuleta said, “Both these guys are close friends and I don’t question their motives but the road to hell is paved with good intentions.”

The school board property tax snafu only confirms the perception of distrust for local politicos by critics like Jerome Lucero and Jeff Northrup. The two gadflies have forced the Town to call for a special election before raising GRT rates. They are reportedly taking a look at the Coop next.

A good argument—mostly based on fear—has been made by Councilor Sanchez for the increase in GRT. When the $100 million construction boom on public projects ends for the county complex and TMS renovations, the Town will suffer a set-back in tax revenue from GRT. Consequently, public services will be cut back. Given the downturn in real estate, construction, and the growing number of empty shops in the Town, the private sector cannot be expected to produce the income necessary apart from a tax increase, according to Sanchez.

(One percent of the current $10 million operating budget goes to pay the Town manager.)

Soon, the local KCE Coop is expected to ask the Public Regulation Commission for an increase in electricity rates. The Coop has come under criticism for losing millions of dollars in side ventures—Propane and Internet services. Meanwhile trustees have engaged in gerrymandering election districts to maintain political control over the Coop and the benefits accorded to the “traveling trustees.” But the CEO and the Trustees want the ratepayers to subsidize their financial misadventures.

The County recently made headlines by rejecting the application for a beer and wine license for a proposed restaurant in Ranchos de Taos. The new owner has spent hundreds of thousands of dollars on renovating an historic area in Ranchos de Taos. Ironically, the decision threatens future GRT income dedicated to paying off the $32 million tax bond for the County Complex, which bond, once again, this former publisher supported and the voters approved.

Now county officials have indicated that the new complex has cost far more than the original $32 million voters approved for the project. Commissioners have yet to propose a budget for operating the behemoth. As soon as the vote for the original bond was passed, the commissioners disbanded the citizens oversight committee. “No activist taxpayers need apply. We’ll do it our way.”

I used to think that a community of Democrats would stick up “for the poor people” in Taos. Even the most visible Republican in Taos, Virgil “I Feel Sorry for Taos County” Martinez frequently refers to the plight of “the poor people.” Like Juma, I think most of the politicos have “good intentions.”

Naysayers like Jeff and Jerome are a product of the times. You can’t blame them. They might be right. The rest of us have egg on our faces.

In Taos County there is nothing more sacrosanct than private property—call it land and the water that goes with it. To raise taxes on property during this difficult economic environment—regardless of who is responsible is a big “NO, NO.” Elected representatives of the school board, the town, the county, and the coop have disappointed supporters and the opposition alike. Truly, the current politicos are as tone-deaf as the Republicans in Congress, who want to extend tax cuts so the rich can play.

And why is all the money coming into New Mexico from out of state sources to support Susana Martinez’s bid for Governor? Richardson did the Demos no favors with his “pay to play” politics, due to his presidential ambitions. All Diane Denish ever wanted to be was Governor. I don’t know if Denish cares about the poor people but we know she’s uncommonly decent. Susana wants to be a celebrity on the GOP circuit and also wants to ban medical marijuana—an historic (AND ONCE FREE) alternative to Big Pharma. Further Martinez would criminalize our poor cousins from the Narco State on our Southern Border, further destabilizing the international relations.

Citizens expect politicos to keep their promises when they approve taxes for public projects. Bait and switch is not good policy. And, it’s time for local government and the Coop to offer a vision of the future with an efficient operating scheme that includes cuts to fat salaries and travel packages.

“The Road to hell is also paved with bad intentions.”