Column by Robert Style
Many Kirkland City Council members don’t care about how people will cope with tax increases.
The government recently made it official: there will be no cost-of-living increase next year. There wasn’t one this year and financial advisors and economists are saying the same for 2011. The reason: the increases are based on inflation. Inflation is zero. It means those on fixed income drawing social security will not get increases they need to cope with their budgets.
No inflation? Aren’t higher taxes considered in the consumer price index? People do, especially seniors on social security. Tell them there’s no inflation.
Ms. Sinick submitted a letter on the subject. Her experience is different than mine.
Most seniors like living in their own home. My mother-in-law did and did not want to move. I watched her exhaust her savings just to pay her taxes before she passed away.
As taxes went up, so did her bills. Her fixed income didn’t cover the cost so she had to draw from the interest on her saving accounts. The more she took out, the lower the interest income. Eventually, her income dropped below the first property tax exemption allowed by law ($35,000 or less annual income). She was being driven into poverty and frightened what the future might bring.
Do we increase taxes to the point that will eventually force seniors out of their homes or to take out an expensive reverse mortgage that reduces their estate, a mortgage that must be paid when the resident moves to their children’s home, a care facility, subsidized housing, or if they pass away? I hope not.
My parents went through the same taxing cycle in New York State. They too were forced and frightened. My parents taught me not to be a burden on society whether I was 18 or 80. I’ve lived my life accordingly. I do not like a government that takes the money I need to accomplish what my parents taught me. I do not want to become a burden on anyone.
That said, there are many seniors that have made bad decisions or due to unforeseen circumstances were not able to do provide for themselves. Many unforeseen circumstances can be planned for. The insurance industry thrives on providing life insurance, health insurance, long-term care, auto and home insurance, flood insurance, and it goes on and on. To not have insurance is not to plan for unforeseen circumstances.
The rate our taxes are increasing is an unforeseen circumstance. Many financial advisors say to make sure people do not deplete retirement income, only draw out 4 percent from your retirement accounts. However, as tax rates increase, we need more than 4 percent. We are being forced into a frightening situation. Our retirement nest egg will be cooked.
Cost-of-living increases have averaged about 3 percent for the last 20 years. In Kirkland, fees and taxes have grown more than 11 percent per year, more than three times faster than our cost-of-living increases. It makes it much harder to take care of our selves and creates an even greater dependent society that must be paid for. Our taxes will increase at a faster rate than they do now.
Kirkland’s proposed utility tax should not break anyone’s budget if they planned for unforeseen circumstances. If they haven’t planned, some council members say, too bad. It adds to the tax burden that makes up the 11 percent government is taking from us.
Government should be caring for us and should not create a class of society that is dependent on government. As it is now, 47 percent of people who file tax returns do not pay any taxes. Many get refunds. The politicians love to play with the IRS tax codes to get votes. Having worked for the IRS, I’ve watched as politicians turn the IRS into a welfare agency. It has added to our tax burden.
Collectively, those who pay taxes are called Peter. When you rob Peter to pay Paul, elected officials get Paul’s vote every time. There are many elected officials that promote an ever-increasing dependent society that relies on their elected officials providing handouts. It helps them get elected.
With the exception of natural gas, utility cost keeps rising even without new taxes. Yet, the city wants to raise taxes anyway. Kirkland’s $2.2 million utility tax is an unnecessary tax because there is $3.8 million in savings that could pay for desired services. And, if anyone thinks it will stop at $72 per household, they haven’t had to pay the bills. The increase is understated to get your vote, is just another camel’s nose in the tax tent, is inflationary, and will increase as much as 44 percent or more after the service contract period expires.
I cared about my parents and grandparents. They were getting close to becoming a burden on society before they passed away. Their taxes grew faster than their grocery bill. My taxes are also.
Our council members should care about how parents and grandparents will cope with tax increases, especially unnecessary ones, without a comparable cost-of-living increase. It is devastating. Still, we have council members who don’t care about how they cope. They should.
Robert Style is a long-time Kirkland resident.
