Leppert on Tax Hike: "I Don't Want it Coming on the Shoulders of the People Who Live Here."

By Robert Wilonsky Tue., Aug. 24 2010 at 10:02 AM

Categories: City Hall

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Sam Merten

While I had Mayor Tom Leppert on the phone Monday evening, to discuss the walkout by six council members before the tax-rate hike briefing even got going, we talked for a few minuts about his opposition to a property tax hike. He acknowledged: Yes, some council members are leaning that way: "Some are for two cents, some are for three and four."

And, yes, he said, he's been to those budget town halls where some attendees are asking for tax hikes to "restore essential services that have been eviscerated," in the words of Angela Hunt Monday evening. And while the mayor said he "will continue to listen" to voters, he cautioned:

"At these meetings, you're getting people with special interests in a specific program, and to get its funding back they want a tax hike," he said. "But even if you do [get one], where does the actually money go? ... Everybody assumes [the money from a tax hike] will go to those special interests, and it may or may not."

He then ticked off "two concerns" regarding some folks' call for a tax-rate hike.

"My two concerns are, first, there are a lot of people who don't go to these town halls," he said. "They're off working. They're people who've had a tough time, who are spending all their times at their businesses, and the last thing they need is another bill from the government. And you need to keep in mind, we have a relatively high tax rate and what we'll do over time -- and it doesn't just happen today or tomorrow -- is, all of the sudden you make it so businesses and individuals will go someplace else, and it's the revenue we lose. I want to build tax revenue. I just want it to come from new businesses and new industries moving into Dallas. I don't want it coming on the shoulders of the people who live here.

"Second thing is: Let's say next year revenue rises. Government has not shown a propensity to give those dollars back, so I'd argue there's some discipline that needs to go into that too. You see it in businesses that have had a bad couple of years. They've needed cut things they'd like to do that they're not able to do. You have families I'm sure you know where they've had to go without things. Hopefully the economy does better, and when it does, that's how we get tax revenue."

But Leppert acknowledged: Monday evening's adios could be a sign of things to come. "The process," he said, "has not played out. Some will make arguments [for a tax hike], others on the other side will make theirs. This will play out, and it'll be what it is."

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The following is a press release sent in from the Stefani Carter for State Rep campaign: Freshman Democrat State Representative Carol Kent received reimbursements worth thousands of dollars from campaign accounts and the state, according to a report by a California based watchdog group. Dave Palmer, an ethics watchdog, reported that the Texas paid Kent's lodging expenses while Kent also sought $4,150, in expense reimbursements from her campaign account. "Double-dipping is wrong," said Stefani Carter, a former prosecutor, and GOP nominee in District 102. "If the state is giving you money to cover your expenses in Austin, you should have the integrity not to have your campaign pay the expense too. Pocketing the money is stealing from taxpayers." Palmer believes Kent committed fraud when the State defrayed costs for which the campaign already paid, according to Palmer's report, which alleges Kent violated federal law, Title 26 of the Internal Revenue Code, �162. Tax expert and professor at the McCombs School of Business at the University of Texas, Lillian Mills, quoted in a Houston Chronicle story said that per diem pay generally is not taxable, "But you can't then use the same amount of expense to avoid paying tax on some other reimbursement like a draw out of that campaign fund," she said. "There may be a free lunch, but there are no second tax helpings." The issue has snagged legislators around the state. Legislators in San Antonio and Houston and have been caught in the net and the investigation was just expanded to the DFW area. Editorials and stories from around the state include: San Antonio Express News Editorial board: Pocketing per diem troubling Houston Chronicle news story "We already knew Kent is a big supporter of raising taxes, but now we find out how she wants to spend tax dollars,� said Carter. �If Kent were serious about solving Texas budget problems, the first thing she should do is not double dip on taxpayer dollars.� Kent was elected in a squeaker in 2008 in a historically Republican district.
how about they fix the Mockingbird bridge? Or is that just supposed to get us excited for a tax hike?
Ya gotta love mayor tom, the savior of the common man. When the trash begins to pile up and the potholes become the size of small craters, you'll hear people bitch and complain about a lack of city services, yet when asked to fund those services via their taxes, they'll shy away and start telling the city to "move around" the money to fund these services. Fact of the matter is this: There isnt any money to move around this go-round. When we have to close down pools/rec centers, force a once a week trash pickup and fail to even fill the worst potholes, yet we have the "tax base" to build a hotel that wont attract the business its projecting, I have to question why this pin-striped jackass is still in charge and why noone hasnt lead the charge to recall him from office...
taxes need to be raised since i only make $758,000 a year!! close the pools and rec centers!
Did I miss something here? Did you guys finally run out of things to expose, so now you're pissed off that somebody DOESN'T want to raise taxes (more specifically, tax rates)? Taking this story and Schutze's related rant together, you seem suspicious that Leppert won't increase the taxing percent so the decrease in property values won't result in a decrease in revenue. Well, consumer sales are down, are you also in favor in upping the sales tax to keep that revenue stream as well? Upping the percentage IS raising taxes, which is not that same as raising revenues. And for once, Leppert is correct in saying that if this rate goes up, we will not get it back when property values recover. And they will. Soon. I've got your back guys, but on this occassion you need some tough love. SNAP OUT OF IT.
Special Interests? Like Librarians, swimmers and basketball players? Like homeowners? Like taxpayers? Please Mayor, you need to be specific. Are we talking corporate special interests - in which case you've made it clear it's OK to cave to, or you know, citizens.
So much sh!t coming out of one pinstriped pie hole.
I failed to mention that while I support Councilwoman Angela Hunt in her past efforts the vote for higher taxes on her part would defiantly make me pause (a long pause at that) on supporting her if she chooses to run for mayor. As far as the condition of the streets I noted the new sidewalks down Preston Road. Been here for 50 years and have never seen the pedestrian traffic that would support these sidewalks or the expense of building them. Noted too that when they recently re asphalted one of my hood�s streets they spent (the city street crews) 2 mornings on one private citizens drive (well away from the street) that has had flooding problems since the house was built-in my mind not a city concern but should be born by the homeowner. These are just two recent examples that make me question the ability of the city to prioritize projects especially in a tough economic climate.
How are customers going to get to all these new businesses with the state of the roads in Dallas (not to mention when they get worse)? What happens when current residents who expect a reasonable level of quality city services move out because the city fails to deliver them? Honestly, I don't think a tax hike is in order because I think the city spends so much money frivolously. But the political reality is that the proposed budget cuts essential city staff and services while maintaining cushy outsourced contracts. If he is worried about the tax hike not going to programs where the money is targeted, then call out the people who want to move it other places. The real reason he can't do that is because people will get angry and they'll start to reveal where his pet projects get their funding and how much they cost. The entire council better get used to reality of transparency now that money is tight/nonexistent. People don't always care about how the pie is divided up as long as it's growing, but watch out when it shrinks.
While he is not one of my favorite elected officials the points he raises are correct. You don�t raise taxes when the economy is down, un employment is high (people are concerned about loosing their jobs), the housing market is in distress (even though the DCAD felt that my property increased in value while the McMansion next door fell more than half my value), and people are trying to keep their head above water. More important is the statements that the raised money from a tax increase might not go to those areas that the citizens are concerned about. And it is true that when the economy recovers those rate increases will not go down but stay high.
Leppert is right when he says that general funds from a tax hike may not go to the specific essential services folks want restored. A good example of this is the hidden bear trap in the convention center hotel's financial agreement, which says that if the hotel's revenue falls short of the debt service, the city council WILL CONSIDER using Dallas' general fund (our taxes) to pay the debt service.
I hate to tell you BigDborn, even if you are not working for the city anymore, if you live in the city you will still be paying taxes. You know, sales tax on everything you buy and oh yeah, that little thing they were actually talking about, property tax, you know they one where if you dont pay they come take you house/land. Sorry to hear you received a RIF notice, but no, the mayor doesnt really care about you.
Say what you will about the man, but he does have a way with words.
I wish this guy had been around when we the City of Dallas was committing untold millions of dollars for a huge, wildly expensive hotel (reminiscent of what state-directed enterprises in the Soviet Union, Cuba, etc. used to do back in the "good old days"), an unproven concept to run a highway down the middle of a river bed prone to flooding that even its proponents grudgingly admitted wouldn't ever carry enough traffic to be meet conventional funding standards and (just now coming to light) cutting large checks to underwrite blockbuster salaries at the State Fair of Texas. Oh wait-- it <i>IS</i> the same guy. Man, I'm really confused.
@Joe Citizen "Self-destructive actions on the Love Field issue."? The same issue Hunt voted for with Mayor on is the same Hunt you want "to move in for the kill." Oh okay. Politics aside, Hunt on policy probably agrees with Leppert on this one. But back to politics, it would be smart politics for her to vote against a tax hike. Her fiscal conservative and open government credentials would be locked down pat: -against hotel -against tollroad -against tax increase -for open bidding
Sounds really good Mr. Mayor. So glad to hear your deep concern for the little guy. What about City employees who got RIF notices - do you have the same concern for them? They won't be paying any taxes because they won't have any income. Many of us have lived here a LOT longer than you Tom, and many of us say put it on our shoulders. You want to have us believe that there are a lot of people who "can't come to the meetings" because all you are hearing at the meetings is bad news for your political aspirations.
You are starting to see the blow back from the Mayor's self-destructive actions on the Love Field issue. Council members are starting to recognize that they don't have to follow his lead and that he is out for himself. His coalition is coming apart. Time for Angela Hunt to move in for the kill.
mayor is wrong, we need to raise taxes so i can keep my $750K salary the state fair runs for 3 whole weeks and i deserve every nickel of it!!