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Thursday, June 19, 2008

A tax is a tax is a tax .... unless, of course, it's a fee

Jeff Siegel, writing on the Advocate's Back Talk blog, one of my personal favorites (both the author and the blog), maintains:
"My objection is not to paying (the City of Dallas) higher water fees, because we need the water. What's irritating is that the (Dallas City) council always pretends that higher fees aren't a tax increase. Of course they are."

Hmm. I'm not sure I can agree with that, unless his argument is that any money you pay to a government entity is a tax. OK, say today (well, perhaps, not today because there were all those thunderstorms this morning) you woke up and decided "What I want to do this morning is get in a quick 18 holes of golf." Not being a member of any of the local country clubs, you hop on over to Tennison, Elm Fork or one of the other municipal courses and play there. Of course, it costs to do that. Not being a golfer myself (Walking for miles to hack at a little while ball that will probably end up in the water anyway? No, thank you. Have better things to do with my time.), I don't know what the current price is for 18 at Tennison, but, whatever it is, does anyone really consider that a tax? And if the price for playing a round is increased, is that a tax hike? Under Mr. Siegel's definition of a tax, I guess it would be.

If TXU raises our rates (again), is that a tax increase, or does it only count if the government owns the utility. So if the city spins off Dallas Water Utilities into a private entity, would a water rate hike still be a tax increase? I guess not, then. Is the money DWU collects from other cities a tax?

Private trash haulers -- those folks who collect garbage at apartment complexes and restaurants -- take their collected booty to the McCommas Bluff Landfill where the haulers pay the City's Sanitation Services Department for the rights to dump their trash there. Is that a tax? Under Mr. Siegel's definition of a tax, I guess it would be.

I dunno. To me, there is a distinct differences between a fee paid (to whom it is paid is irrelevant) for specific services rendered -- whether that service is providing me with water, picking up my garbage or those services provided by my homeowners association -- and a tax, in which money goes into a mass account that is used to pay for public safety, road improvements, etc.

The city has this process homeowners must go through if they would like speed bumps installed on the public streets in their neighborhoods. It usually involves the homeowners agreeing to fork over some cash to get the job done. To me, that money is a fee, not a tax. Under Mr. Siegel's definition of a tax, I guess it would be a tax.

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