ISSUE #2 : NEW SALES TAX PROPOSAL

By John A. Martes

VOTE NO ON PROPOSITION "J"

Now the City Council has placed on this ballot, a proposition for another half cent sales tax increase for 20 years. They claim that they have a 4 million dollar structural and a 2 million dollar cyclical deficit in the general fund. Eighty five percent of the general fund is spent for wages and benefits for city employees.

Therefore, we can say with some assurance that this city will collect another 8.5 million dollars per year with this new sales tax increase. Now let's go through the math:

EACH YEAR FOR FOUR YEARS

Sales Tax Revenue

$8,500,000

Less: Structural Deficits					(4,000,000)
( Salary & Benefits)
Subtotal of surplus Revenue					4,500,000

Less : Cyclical Deficit											0
(In a Five Year Period)
Total Surplus Tax Revenue						$4,500,000

FIFTH YEAR

Sales Tax Revenue

$8,500,000

Less: Structural Deficits					(4,000,000)
(Salary & Benefits)
Subtotal of surplus Revenue					4,500,000

Less : Cyclical Deficit						(2,000,000)
(In a Five Year Period)
Total Surplus Tax Revenue						2,500,000

TWENTY YEAR TOTALS

Sales Tax Revenue

$170,000,000

Less: Structural Deficits					(80,000,000)
(Salary & Benefits)
Subtotal of surplus Revenue					90,000,000

Less : Cyclical Deficit

8,000,000

Total Surplus Tax Revenue

$82,000,000

In this analysis, I have taken a very conservative approach by using a five year Cyclical Deficit instead of the typical ten year cycle. Much of the Cyclical Deficit is dependent upon the economic conditions in America.

I find it very disturbing that our city council is asking for more hard earned money from our citizens when we all are suffering from this economic recession. They are asking for more money than they need and more from those who are most economically depressed. We all are having trouble paying the increased cost of gasoline, food and health care; and they don't seem to care.

This sales tax increase will make El Cajon business less competitive in the county and the state. Have you noticed how many business vacancies we have in our city? As a direct result of the sales tax, we will have more El Cajon businesses move to other cities like Santee; while other businesses close their doors. It will cost our city dearly in revenue on which it depends. We have to protect our business community and also bring new business to El Cajon. This would increase employment and our tax base