At the Capital Connection there was an interesting exchange between local leaders and Rep. Mike Sparks. His bill to limit local municipalities ability to raise taxes deserves debate. Few people realize that the debt a county or city you live in incurs is like taking a second or third mortgage out on your home. As most of these bonds are insured based on the local government's ability to raise taxes. If you limit their ability to raise taxes you will raise the cost of future borrowed funds. As a limited government guy, I do not mind and actually like limiting elected officials ability to raise taxes.
The proposed limit would be 25% and I think we should give municipalities 2 years to get their house in order, but after those 2 years, I'm all for limiting them unless by referendum. Please leave a comment and let me know what you think.
Here are the videos: (Turn up your speakers, I'm an amateur videographer)
