Thursday, July 22, 2010

14% Tax Increase? We don't think so...

Opponents of the transportation sales surtax referendum in Hillsborough County are claiming the referendum would increase the sales tax by 14%. Because sales tax is measured in 1% increments, this figure is misleading since it may cause residents to believe that if they buy an item, they will pay an additional 14% on their entire purchase when this is certainly not the case. This investment in our community is one percent.

Today, when a parent spends $20 on back to school supplies, they pay $21.40 with the existing sales tax. When the referendum passes, they would pay $21.60, a difference of only 20 cents. Obviously, this is not a 14% increase on the purchase, but rather a one percent increase (or 20 cents on a $20 purchase).

So spread the word, and don't let your friends and family get lost in the spin.

Your defenders of transportation truth,
Mobility Mike and Commuter Carly

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