|
Democratic
Excellence - Internet
Newspaper www.democraticexcellence.com - editor@democraticexcellence.com -
770-474-2655 211 Orchard Road, Rex, Ga 30273
The Hidden
Impact Fee Problem
Editorial by Jeff Goolsby, Editor
I am amazed that Republicans have been so successful at
fooling the public, including some Democrats, with President
Reagan's Supply Side Economics which Bush Sr. correctly labeled
"Voodoo Economics" in the 1980 Presidential Primary.
Impact fees were one of Reagan's main tools designed to create a huge
inflation/dollar devaluation. George L. Meany, president of AFL-CIO, said
more than 60 years ago, "Republican Philosophy: 'The American public is too
stupid to know when they are being taken'".
Reagan promised to balance the Federal budget by
the end of 1983, but instead he tripled the Federal debt in 8 years with his
Laffer Curve Supply Side Economics, and at one point, had the annual interest
rate cost on the Federal debt up to $360 billion dollars from an annual $35
billion when he became president, welfare for the rich. He doubled the
cost of building homes in 8 years and a major part of his scheme was Impact
Fees. Nothing happens by accident in politics, Reagan made it happen the
way he and his advisors wanted it to happen.
Some people mistakenly believe that building homes is
the cause of our population growth. The actual reason for our growth
is that industry and commerce are moving into Henry County creating jobs, which
is the cause for building homes. A knowledgeable home builder would never
build homes for sale unless he was convinced of a need for the homes.
Most people buy the maximum home for which they
qualify. Impact fees will not stop people from buying homes, they will
just get less home for the price they can afford, inflation/dollar
devaluation.
Many people mistakenly believe that cities and counties
provide subdivision developers with streets and utilities. The subdivision
developer has to pay for any extension of streets or utilities, plus pays for
streets, sewer (if applicable), and water lines to the property line in the
subdivision. The streets and utilities are then donated to the city or
county free of charge. The price of the lots includes these costs plus the
cost of the raw land. For more than 200 years the real estate taxes were
adequate to pay for all city or county services and maintenance, without impact
fees or SPLOST taxes.
The Leland Maddox proposed $3.000
impact fees would raise the price of new homes in the County and Cities at least
$4,000 when construction loan costs, sales costs, permanent loan closing costs,
discount points, etc., are added to the impact fee cost. The tax assessor
is then required to raise tax value assessments likewise. Homeowner's
taxes would increase. Landlord's taxes would increase causing them to increase
rent. Current Henry County residents would also have to pay the impact
fees when purchasing a new home. A $4,000 increase in price would increase
payments approximately $40 per month times 30 years with a total cost of $14.400
more than not having the added impact fees. This unnecessary impact fee
cost would pass on to subsequent home buyers due to locked in inflation.
Incidentally, we already have unnecessary impact fees that should be
repealed. What we need is to obtain our gasoline road tax money, like
Thomas County, not impact fees.
Our traffic congestion is
a disgrace. As an example, Thomas County (Thomasville, GA) (Democratic
County Commissioners and Legislators) has 39,000 population, 2000 census, and 38
miles of 4 and 5 lane roads. Henry County has approximately 125,000 population
and we have less that 6 miles of 4 lane roads. Gasoline taxes paid in
Henry County for our roads in the year 2000 amounted to $30 to $35 million,
including interest accrual, and we only received back $1.5 million for our
roads. If you will read all of my material at www.democraticexcellence.com,
and click on "Archive Editorials", regarding impact fees with an open mind, you
will learn that impact fees are a tax increase for everyone, home owners and
tenants, along with a typical Republican con artist trick to create
inflation/dollar devaluation (but you may already know that).
As for my qualifications to make this analysis:
I built houses from 1954 to 1994, 956 houses, and was
the largest volume home builder in Albany, Georgia for 15 years and developed
some subdivisions. I still hold a Real Estate Broker license which I
obtained in 1960. I am also a mortgage loan officer. I was president
of the Home Builders Association of Georgia, in 1967, and local, state, and
national director for 17 years. While a director, I proposed and started
the 95% conventional loan, and proposed and started the states nationwide into
providing low cost mortgage loans for low income home buyers, GRFA in
Georgia. I recently invented and obtained a patent for exterior rear view
mirrors for motor vehicles that provide the regular view, overtaking view, and
blind spot without distortion, which is scheduled to be in production early next
year.
I wrote a book on "Real World" economics, THE
RAPED PAYCHECK, which includes economic reality that is not included in
economic text books. Jimmy Carter read this book, which was recommended by
Leon Keyserling, President Truman's Chief Economic Advisor, and his campaign
immediately sounded like it was coming from my book. However, upon
election, he adopted the Nixon/Ford economic agenda instead of
using my book as an economic guide.
I have written a book which details Republican
shenanigans and details a method to convert Social Security from its current
poverty level retirement to a rich retirement without any extra cost to Social
Security taxpayers. I have written a book with proposals to
correct the huge number of defects and corruption in our judicial
system, and also exposes some considerable misconduct in our local
judiciary. You can be ripped off in civil or criminal court. When
innocent people are convicted, the real criminal walks free to commit more
crimes. You can obtain these books at www.rojego.com. If you read the
editorials and news links at www.democraticexcellence.com,
you will get an excellent political education.
I have been a political analyst and consultant for many
years, and currently chairperson of D-EAT, Democratic Excellence Action Team,
Inc., Political Action Committee (PAC)
Copyright © 2001, by Jeff Goolsby, Rex, Georgia, All Rights Reserved
|
|