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Wednesday, March 9, 2011

County, Towns and School District Favor Regressive Taxes

From: grandcountyscoop.blogspot.com

Regressive taxes take a larger percentage of income from low-income households than higher income households as a total percentage of income. Examples of regressive taxes are sales taxes, fees and fines.

As an example, let's compare a $20,000 dollar per year household to one making $60,000 dollars per year. Let's assume the same number of people per household, and that they spend roughly the same amount of money on food and gasoline. They'll both pay the same amount of sales taxes on their purchases, but the household making $20,000 will pay a much higher percentage of taxes compared to their income than the family earning $60,000. I'm going to give an example of these two families shopping at Safeway in Fraser to show just how much sales taxes affect lower income households.

In a recent Credit Loan study, it was shown that the average household (consumer unit) spends $6372 per year on food.(Credit Loan) For the $20,000 household, that translates into nearly 32 percent of their income going just to food. For the $60,000 household, it's a little more than 10 percent.

Currently, the sales tax at the Fraser Safeway is 7.9 percent. That total consists of a 2.9 percent state, one percent county and a four percent city tax. Let's assume our two households spend nearly all of their food money at Safeway. They would pay $503 dollars in sales taxes on their $6372 yearly food outlay. For the $20,000 dollar household, that equates to 2.5 percent of their entire income going to pay taxes on the food they eat. For the $60,000 household, the total tax outlay on food is less than one percent, at .008. That means the $20,000 household spends three times as much tax as a percentage of total income on food purchases as compared to the $60,000 household, even though they spend the same amount.

There's going to be a big push to raise county sales taxes by one percent in order to fill the school district's coffers. So how does this affect our lower income families? It's only a penny right? Well, let's do the math.

A one percent sales tax increase would raise Safeway's total sales tax to 8.9 percent. That means, for the same $6372 outlay for food, our households will now pay $567 dollars in sales taxes--a nearly 13 percent increase! (64/503=0.127) The affect on our households? The $20,000 household is now going to pay 2.8 percent of their total income to food taxes--also a 12 percent increase. The $60,000 dollar household will now pay nearly a full percent of their total income to food taxes, at .095 percent--an 18 percent increase.

Now, for Superintendents making $120,000, that's nothing. But for a school district with a large percentage of its citizens making decidedly less than that, a one percent sales tax increase is a very real threat to their livelihood.

Grand County Commissioners Prove They Are A Farce | Approve School Funding

In a move expected in this age of zero accountability at all levels of government, our three commissioners unanimously approved giving money to the schools, no strings attached, in a desperate bid to hike taxes this November.

A commissioner whose spouse works as a teacher at one of the schools targeted for closure allowed himself to vote on the matter instead of recusing himself, demonstrating a clear lack of integrity. I could vote to keep my wife's job too, but then I wouldn't be able to look at myself in the mirror. Hopefully, the citizens of Grand County will take this fact into consideration at the ballot box at the next opportunity.

With this final act, and the obvious behind-the-scenes jockeying between the special interests, school district, towns and county representatives, the stage is now set for a hard push for a sales tax increase. As usual, it's really the only solution being discussed. It's also not going to fix the problem.

I attended the Winter Park Town Council meeting last week, and asked a question, "What's the end goal here? What does the town of Winter Park intend to get out of the money it's laundering for the school district?"

The answer? To give the schools one more year. I'm assuming it's to find a permanent, sustainable funding source. (MORE TAXES!)

The school board is going to meet next week so they can announce that they'll be keeping the schools open another year. I'm sure the school board is feeling pretty good right now, with complete support from their town and county representatives. The money just keeps flowing, and the lack of accountability is completely transparent.

The voters are going to have a voice in November, and I'm confident the slam dunk they think they have is going to be a big whiff.

How damaging is a one cent sales tax? Read this post.

Wisconsin Senate Ends Collective Bargaining For Public Unions--Without AWOL Dems

Well, it's official. Wisconsin fired the first shot over the bough of the bloated public union apparatus that has become a hangman's noose around public finances nation wide. This afternoon, they went ahead and passed a much-needed public union reform bill.(CNN)


And to show just how uninformed people are about the matter, this quote:


"The gig is now up. The fraud on the people of Wisconsin is now very clear. They are now going to pass a bill to take away people's rights," Barca, a Democrat, said."(CNN)


Barca, you're an idiot. Even FDR knew the limits of unions:


"Roosevelt's reign certainly was the bright dawn of modern unionism. The legal and administrative paths that led to 35% of the nation's workforce eventually unionizing by a mid-1950s peak were laid by Roosevelt.

But only for the private sector. Roosevelt openly opposed bargaining rights for government unions.
"The process of collective bargaining, as usually understood, cannot be transplanted into the public service," Roosevelt wrote in 1937 to the National Federation of Federal Employees. Yes, public workers may demand fair treatment, wrote Roosevelt. But, he wrote, "I want to emphasize my conviction that militant tactics have no place" in the public sector. "A strike of public employees manifests nothing less than an intent on their part to prevent or obstruct the operations of Government."(Real Clear Politics)

Monday, March 7, 2011

With 19 Available, Grand County's Job Market Booming

If the 2010 census numbers are to be believed, Grand County has 14,843 total residents. Of that total, over 11,800 are over the age of 18--working age!

If the latest unemployment number out of the Bureau of Lies and Scams (BLS) is to be believed, our national unemployment rate is *cough* 8.9 percent *cough*... That means, of 11,800 working age adults in the county, 1050 can't find gainful employment, even though they'd like to. If you believe there are only 1050 people in the county who can't find work, I've got some really nice Louisiana swampland I'd like to run by you.

Well, not one to despair over such odds, I took a quick look through the local job classifieds in the SkyHi News. Once you eliminate the work-at-home opportunity, the Denver truck driving job and the night desk position at the Aspen Times, there are a total of 19 advertised positions available in Grand County. With 55 people per job, employers will get a lot of work done if they divvy that $7.25 minimum wage correctly.

You know what? Why don't we remove $3,000,000 dollars from the local economy by raising sales taxes a penny! The stimulative effect of that move is sure to create plenty of service sector jobs in the county.

From Craigslist | Leadville Rocks!

Society has so many facets, it's almost impossible to believe people can be so varied... One look at the 'Rants and Raves' section of Craigslist.org will put those doubts to rest.

According to an anonymous poster on rockies.craigslist.org, Leadville is a nice place to live. It has a, "Nice Safeway, good drive ups and take out places as well."

Well, Leadville may very well rock, but I'm partial to Tabernash myself!

Cool Business | Winter Park Winery

I don't even drink, but their hands-on approach to a finished product really appeals to my sense of quality. Actually located in Fraser, the Winter Park Winery produces quite a range of wines for the connoisseur. Watching this cool video of wine production made me want to grab a pitchfork and throw some grapes! P.S. I wasn't paid for this endorsement although I wouldn't complain!

Nothing To See Here | February Deficit Larger Than ENTIRE 2007 Deficit

Well, it's official: In the 28 days of February, the U.S. Government managed to spend $233 billion dollars more than it took in--about $71 billion more than the deficit for ALL of 2007...

Oh well, none of it really matters anyway. Until it does.

If Congress and the President don't wake up, the United States will, sooner or later, have it's U.S.S.R. moment.

8.9 Percent Winter Park Tax Tops For Tapping Taxpayer Trough

According to a recently released study by the Tax Foundation, Colorado ranks 24th in average sales tax rates among the 50 states, with a statewide average of 6.98 percent. (Tax Foundation)

That's pretty good, until you come up to Grand County. Our local taxing authorities, drunk on the rarefied air of the Rockies, have decided that isn't good enough. They think we have too many Texans, Nebraskans, Arkansonians, Kansans and their flatland ilk not paying their fair share to enjoy nature's bounty, so they've piled on the sales taxes. Of course, they fail to mention that you and I have to pay the same tax when we do things like eat.

The Town of Winter Park, with its 8.9 percent total sales tax, collects a full 27 percent more sales taxes than the statewide average. At 7.9 percent, the town of Fraser collects 13 percent more sales taxes. But that's not good enough. They want more!


This November, the towns, in cahoots with the Grand Foundation, Winter Park Ski Area and the East Grand School District, are going to try to convince voters to approve a 100 Percent Increase to county sales taxes in order to shore up the mortally wounded school budget. "But it's only a penny", they cry!


That penny would equate to a person in Winter Park paying nearly 42 Percent More Sales Tax than the statewide average. Sorry, but that math doesn't add up!


UPDATE: A commenter asked how we stack up against other resorts. Here you are:


All you have to do is visit the Colorado Department of Revenue website to find them: Colorado Department of Revenue

Vail: 8.4%
Aspen: 8.6%, which includes a .5% mass transit tax.
Breckenridge: 8.35%, which includes a .75% mass transit tax.
Steamboat: 8.4% 

Winter Park would be at 9.9% after this initiative, or 15 percent higher than Aspen, and they at least have mass transit!

Cool Video | Destructive Test Of The Old Eskimo Chairlift

This is a cool video from 1990 when the old Eskimo two man chair was tested to destruction before being replaced by a three-man YAN lift. You can even see the old tree cuts before Retta's run even existed! In those days, the 'professional' fire team didn't run on taxpayer dollars; they ran on beer!

Sunday, March 6, 2011

The Problem With America's Economy | And Her Solutions

David Walker, former Comptroller General of The United States on 60 Minutes in 2007:



The Fair Tax:




And the Tickerguy gives a wonderful breakdown of what we must do in order to regain competitiveness and get jobs back into the United States:


If we want to fix America's economy, we have to address the distortions that have been exploited by those in American business, and especially those in foreign businesses.  This means, broadly, two things:
  • Economic (wage) arbitrage
  • Environmental arbitrage
The solution to both of these problems is the same - the exercise of original power granted to US Congress in The Constitution.(Click Here To Read More)

Like I Predicted...

Crude overshot $104 a barrel:

March 6th, 2011

And here's what the picture has done since February 22nd:

...When crude oil was only $93.45 a barrel:

February 22nd, 2011
Then $102 a barrel:

March 2nd, 2011
Each dollar gain in crude translates to about a $95 billion dollar loss to GDP. That means, since February 22nd, we've lost  $1.13 Trillion dollars of GDP due to sending money offshore for oil. That's on top of over a half trillion lost between February 21st and 22nd.

The Saudis' are comfortable with Brent crude at $120 a barrel, but I see it overshooting that by a wide margin.

Calculating The True Cost Of Mill Levies In Grand County

When homeowners hear the term 'mill levy,' their eyes glaze over as they quickly check 'Yes' on whatever issue is before them on the ballot.

Mill levy override? Yes!

Mill levy increase? Yes!

School mill levy? Yes!

Rec. district mill levy? Yes!

Fire district mill levy? Heck Yeah!

How bad could it be? One mill only costs you $0.0796, or about eight cents per $1000.00 of assessed value in Grand County (Grand County Assessor). To get a better idea of the cost of one mill, lets look at the assessed value of a typical home in Winter Park.

According to City Data, the mean home value in Winter Park is $415,000, so the cost of one mill to the average Winter Park homeowner comes in at $33.034 (.0796*415).

The East Grand School District gets 19.651 mills from every property owner in their district. That means the typical homeowner in Winter Park shells out $649.15 every year, just for schools (19.651*$33.034).

If you live within the East Grand Fire Protection District #4, add another 6.148 mills. Fraser Rec. District? Tac on another 6.161 mills (CO Dept. of Local Affairs).

So the homeowner above, located within just those three districts, has to pay 31.96 mills (19.651+6.148+6.161), or $2.54 per $1000 of assessed value of their property. They would have to pay ($2.54*415) = $1054 per year in this case.

But, it doesn't stop there. There's the Grand County Library District (2.41 mills), and Grand County itself (15.155 mills). That's another $580 on top of the previous $1054 for a total of $1634.

So what, you say? What's the big deal? It's only a little over $100 dollars per month.

That $1634 dollars is coming out of your after-tax income. That $1634 dollars, if you don't pay, allows the county to place a lien on your property. They can then sell your property to recoup their tax. How does that square with your sense of justice?

Everyone must pay their fair share, right? I guess paying a 35 percent income tax isn't enough of a fair share? How about paying a 10 percent sales tax on top of that? Why don't we raise taxes one penny, so the sales tax rate in Winter Park is the highest in Colorado, at 'only' 11 percent? Where does it stop folks?

The next time someone tells you it's 'only' a penny or 'only' a mill, just say the only thing that makes sense: No.

Friday, March 4, 2011

A Moment Of Silence...

... for a dear family friend.

My thoughts and prayers are with she and her family today. May your beautiful soul rest in peace.

Does Winter Park Resort Use Its 1600 Employees To Influence Elections?

Duh!

Link


E-mail addresses for 1600 employees? Free

Having the ability to 'suggest' how to vote in November? Priceless!

Save The Fraser? You're A Hypocrite, And This Is Why...

Ignorance is not an excuse for this:


Or this:


Own anything made in China? Then you've contributed to the environmental disaster that is China today. Click here to see the story and captions for the photos above.

As Americans, we need to pull our collective head out of our collective ass in order to see that the real problems with the world today are tied directly to each one of our wallets, and by association, us. Karl Denninger gives a perfect explanation as to why this has happened, and how to fix it:


"America used to mistreat her land and water like this.


This sort of thing, by the way, is how you manage to produce things with a wage of $1 or $2/day and undercut first-world producers.


When we have "free trade" with China, this is what we are supporting.  This is what we're serving up on their people.  This is what our government and corporations all say is ok - so long as it is hidden from us, and happens "over there."


Make all the excuses you want America, this is what you're supporting every time you buy anything made in China or containing Chinese componets.


Go walk around your house and pick up 10 random items.  Look for the "made in" tag on the back or bottom.  What's it say?  Now consider this - it is virtually impossible today to buy a piece of consumer electronics, a toy, an automobile or even a toaster without some part of it coming from China.
YOU are why this is happening.


These are not old photos, or someone's Photoshop experiment. They're real, they're current, and they are what our hedonism, demand for $20 DVD players and "cheaper and faster" from everyone has resulted in, all so our "corporations" can report "record profits."


Those "great earnings" the last two quarters were in fact generated by firing Americans and shifting yet more production over to China, where they poison their air, water and ground with wild abandon, all so we can have a "strong" stock market and our banksters can loot us some more."(Market-Ticker)

Thursday, March 3, 2011

Leaking Cracks In The Dam | Special Districts

The cracks in the public funding dam are beginning to leak, and the first domino to fall may just be the Fraser Valley Metropolitan District. 

With the IRS auditing the bond issue as it pertains to some of the contractual agreements of the deal, it's possible this won't be a bump in the road, and could lead to some rather large and untimely sanctions to current bondholders. What that would mean to taxpayers, who fund the district through a mill-levy, is that their dollars are not being spent with the greatest care and diligence. We'll have to see how this plays out, but I will be watching it closely. 

The East Grand School District is another taxpayer-funded entity currently experiencing financial troubles. School closures and further cuts in overall programs are a near certainty within the next two years. This is an assessment year, and there is a high likelihood of a 20 percent or more devaluation to property values county wide. The next assessment in 2013 will most likely see more of the same.

The Kremmling Hospital District, if looked at in the aggregate, is going to experience a treacherous path. Millions of dollars have been committed to a project that might end up being a white elephant. From what I can see, the ~$800,000 dollars of taxpayer funding used to operate the Kremmling facility are in jeopardy as they will need to be rerouted to keep the new Granby facility on life support.

Grand County is home to numerous special districts--all who receive some sort of taxpayer subsidy. Some of the districts are only funded by people in their particular towns--others are funded by the county as a whole. No matter what the district, they are all facing the same revenue problems. Any improprieties during the boom years are going to be uncovered as people's wallets get thinner. 

536 Fools And Their Bloated Pie

The President, 100 members of the Senate and 435 members of the House of Representatives are who I collectively refer to as the 536 Fools. The following chart illustrates why:

From Market-Ticker

See those four huge slices that take up the right hand side of the chart? Those pieces are, one way or another, going to be addressed by Congress. It will either be an orderly and honest discussion about slashing these programs, or the bond market will cause a disorderly breakdown, and tens of millions of Americans will be thrown instantly into chaos.

Which would you choose?

Wednesday, March 2, 2011

What's Up With Neenan?

If you're driving toward Granby from Silver Creek, you'll notice a big concrete building going up in a snowy field east of Highway 40. The construction trailer is adorned with a banner that reads, "Neenan Archistruction."

I looked this project up, and found two websites for the new medical center, dubbed the Middle Park Medical Center. The Middle Park Medical Center website offers this little nugget in a question and answer:

QAren't two ER's too many for Granby?


A: St. Anthony's Granby Medical Center has an Emergency Department nearby the future Middle Park Medical Center. The Middle Park Medical Center will have an Urgent Care Center which is being built to Emergency Department standards.


How many ways are there to answer a question with a non-answer? It's urgent care built to emergency room standards, so technically, yes, its an ER... Uhhh, maybe I'm missing something here? Answer: no.


It also looks as though Kremmling Memorial made an attempt to partake in social networking by creating a blog dedicated to the Middle Park Medical Center. Hey, as long as you have a blog, a Facebook page and a YouTube channel with your company name, you'll win. Excuse me while a chuckle for a few seconds. 


I looked through the blog a bit, and came upon a page dedicated to trying to convince citizens of Kremmling that they won't lose their hospital to this new center with an 'urgent care' ER. Have you checked the demographics of Grand County lately? Of course they plan to close the hospital. All you have to do is go back to the MPMC website for their admission:



Q: What will happen to the hospital in Kremmling?

A: The hospital in Kremmling will remain in Kremmling. In 2006 several acres of land where purchased in order to one day build the replacement hospital just outside of Kremmling across the highway from the airport. A potential use of the current hospital might be a nursing home.(Kremmling Website)


Translation: In 2006, we bought some land to one day maybe build a replacement hospital 'just' outside Kremmling across the highway from the (Granby) airport. Once the new medical center, dubbed Middle Park Medical Center is built, we'll turn the hospital into a nursing home. Answer: It will be turned into a nursing home.

Thanks for at least telling the truth, even if it did take a bit of reading between the lines to see it.

By now, you should know how I feel about online polls, but they actually refer to a poll in the Sky Hi news:

"Although a recent poll from Sky Hi Daily News shows that the vast majority of responders believe the proposed Middle Park Medical Center Project by Kremmling Memorial Hospital is needed and a good idea."(MPMC Blog)


Let me guess, the 'vast majority of responders' were one person clearing the cache on their computer and voting to get the desired result? I've watched it happen on the SkyHi website as well as my own.


The best part of the whole blog though? Their justification for using Neenan. Under a headline that reads, "Why Neenan," we get this:


"Further confidence in Neenan came from their experience in the county with the school projects they had been involved with."(MPMC Blog)


I am still looking into this, but I'm pretty sure that the school projects had millions of dollars of cost overruns. This is exactly the kind of company I'd want on my project! Go Neenan!


Do you have information that could help me connect the dots? Please e-mail or leave an anonymous tip!

What Do Ghawar And Grand County Have In Common?

They're futures are both quite uncertain.


The Ghawar oilfield, located in Saudi Arabia, is one of the world's largest. If you think oil at $102 a barrel seems expensive, you won't believe what it could go to if this oil field comes under threat.


"The latest sell-off [Of the Saudi stock market] was triggered by the arrest of a Shi’ite cleric in the Kingdom’s Eastern Province after he called for democratic reforms and a constitutional monarchy. The province is home to Saudi Arabia’s aggrieved Shi’ite minority and also holds the country’s vast Ghawar oilfield, placing it at the epicentre of global crude supply.
“Unrest in this region can have fatal consequences for the world,” said JBC Energy. “The plunge on the Saudi stock exchange can be interpreted as a sign of waning trust.”(Telegraph)

There you have it. Libya is currently at the center of the oil price news, but Saudi Arabia is sitting on a low boil. If things heat up there, oil will go to prices we've never seen--even during the embargo days.

Life's Not All Doom And Gloom; You Have To Ski Some Time!

Opening day at Winter Park last November was phenomenal! One of the wonders of living in Grand County is that the outdoors provide plenty of solace and the ability for self reflection.