Editorial Template
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