If transportation vote fails, is there a plan B? (Atlanta: loan, tax)

[arjay57]

Here's a good piece by A.J. Robinson, President of Central Atlanta Progress and the Atlanta Downtown Improvement District. This vote really is about deciding what we want our future to be. Like Robinson, I am concerned that if we don't invest in the future, we simply won't be able to retain or attract young folks like we have in the past.

I am convinced that the critical decisions that affect businesses in metro Atlanta today will also make a tremendous impact on whether or not they grow up and decide to do what many of you and I have done: choose Atlanta, as a place to live, work and raise a family.

The July 31 Regional Transportation Referendum provides us an opportunity to address many of the traffic issues that plague Atlanta residents and to provide new transportation options for workers and families. For our economy, it means the opportunity to support over 200,000 jobs, while attracting and retaining companies and the talented workforce on which they depend.

For my kids, projects like the Atlanta BeltLine and the Atlanta Streetcar will mean that the lifestyles of access to great amenities and connectivity that their generation clearly demands will be flourishing right here when they begin their careers. It means that the centers of employment where they may seek jobs will be more likely to be thriving, still hosting some of the world’s top companies, growing businesses, new startups, and civic organizations.

Without making investments like 157 projects designated for $8.5 billion in funding through a 1 penny sales tax in this referendum, we take an enormous risk in allowing those opportunities—and other regions—to pass us by.

This is a game changer for Atlanta. Today, our roads are seriously outdated for the volume of traffic they now carry. The gas tax that has funded transportation can no longer keep up with the demands of repair, not to mention the investments in new infrastructure needed to support a 21st century economy.

At the same time, the public’s attitude regarding transportation has evolved. What was anathema to people 20 years ago is expected and desirable to many metro Atlanta residents who are drawn to transit oriented, walkable, and mixed-use communities. If we are fortunate enough that our children wish to live nearby as adults, we can be assured that this is the type of Atlanta they will demand.

The down economy and global financial woes have walloped the metro area. Atlanta is still struggling to recover. Most of us do not want to see higher taxes; but, this is a case where we have to look at this penny as not a tax but an investment in our region’s essential infrastructure and economic development needs—just as we would invest in a new factory for our business or a new roof for our home.

A “yes” vote on the referendum is not just about the transportation improvements that will make our lives easier and our region more prosperous over the next decade. It’s about making sure that the Atlanta of the 21st century is one that our children and their children are willing to also say “yes” to. Please join me and bring your family, friends, and colleagues to the polls on July 31.

TSPLOST critical to making Atlanta a place future generations call home | Regional Issues Forum

[cqholt]

Well said. This is not just for us, but for future generations. Do we really want future generations to suffer from the same congestion and air pollution we do. I can tell you that as part of the "young, creative class" cities that are not scared to invest in alternate are the cities that attract young professions to raise families. If we fail to attract these people we will slowly decline from our current status into a secondary city.

[arjay57]

The actual individual cost of the TSPLOST:

[quote]For example, low-income families — people making between $5,000 and $10,000 a year would end up paying 1.7 percent of their pre-tax income (or $76 per capita). By comparison, people making more than $70,000 a year would pay 0.4 percent of their pre-tax income (or $142 per capita).

But Peter Bluestone, a senior research associate at GSU’s Fiscal Research Center, said the burden on lower-income families “could be mitigated by purchasing qualifying food products through various supplemental food programs such as the federal food stamps program.” Those would be exempt from the transportation sales tax.

Among the different age groups, senior citizens (65 and older) would be expected to pay about 0.6 percent of their pre-tax income for the sales tax (or $136 per capita). The age group with the highest relative burden were those under 25, which would pay 0.7 percent (or $82 per capita).

The disparity, however, isn’t that great with the age group that would be paying least of their relative income — those between the ages of 45 and 54, paying 0.4 percent of their pre-tax income (or $116 per capita).


Individual cost of transportation sales tax will vary based on income and age

[cqholt]

Rich people buy more things. Too bad the sales tax doesn't apply to online purchases.

[samiwas1]

Originally Posted by arjay57

The actual individual cost of the TSPLOST:

So, my yearly contribution to help revitalize my city's transportation infrastructure and options is less than my monthly cell-phone bill. That should say something!

[PKCorey]

Originally Posted by cqholt

Rich people buy more things. Too bad the sales tax doesn't apply to online purchases.

If you use the Consumer Use Tax form, we just have to wait for it to be updated to include the line for this tax, if the law passes next week.

[tikigod311]

Originally Posted by cqholt

Too bad the sales tax doesn't apply to online purchases.

I love that loophole!

[neil0311]

How can you possibly estimate how much impact a sales tax will have, since it's based on consumption? Even with rough guestimates, you would be wildly off in many cases.

[Cameron H]

Originally Posted by neil0311

How can you possibly estimate how much impact a sales tax will have, since it's based on consumption? Even with rough guestimates, you would be wildly off in many cases.

That's true. One of the real disadvantages of revenue generated from consumption taxes is its volatility in the short term. On the other hand, if you just need to estimate average revenue over a ten-year period, you can do that fairly accurately.

Plan B: Come back in a few years when the economy is a little stronger and the anti-tax fervor is a little cooler and pass the exact same referendum without much drama in a general election.

[neil0311]

Some interesting thoughts on possible things that could be included in a "Plan B" discussed and agreed upon by the Sierra Club and the Atlanta Tea Party, two groups opposing the current TSPLOST plan. There is a "Plan B" if concerned citizens suggest and push for one. The mantra of "now or never" and "better this than nothing" is flawed and we can do better.

TEA Party; Seirra Club Announce Areas Of Agreement For Post T-SPLOST Plan B