By: Diane Benjamin
See this post from earlier today: http://blnnews.com/2015/06/16/its-simple-econ-tari/
In just NEW taxes, Tari took $3,680,714 away from taxpayers.
What that number doesn’t reflect is the Velocity of Money (Google it)
If taxpayers had kept that money, they would have spent it. Much of it would have been spent at local stores. Those businesses would have paid more in taxes because their incomes would have been higher. Their employees (or new employees) would also be making money, they would also spend a lot locally.
Getting the drift?
The goal most economists state is to turn money over 7 times in a year. So, really Tari didn’t just take $3,680,714 out of the local economy, he took up to 7 times that much: $25,764,998.
How much revenue does the City forfeit by taking more from citizens?
Should I make up some numbers for you Tari? You know, like the pretend economic impact numbers the Coliseum puts out?
Figure out how much of that spending would be returned to the City in State Sales Tax, then add local sales tax. How much might be subject to your liquor tax or food and beverage tax? Maybe some video poker revenue too?
You still have one more foot, try not to shoot yourself in that one too Tari. Disarm the budget committee immediately!
So Mayor Renner wiped out any supposed economic impact from the white elephant downtown.
Funny how tax receipts are lower than expected
Why sure, people like me who went to Springfield today shopped out of town and not in B/N.
As the Tari Two Step, steps one foot forward its hard to keep a balance when one does not know which way he is going.
I don’t recall the person’s name I just remember he is some CEO of downtown economic development or something like that. I hope someday I’m as fortunate to have a worthless job like that and be a CEO. Sorry I digressed. Anyhow this guy was raving about how the “White Elephant” or something downtown created this massive $$ economic influence on the area. Yeah what we don’t hear about is the opposite side effect when they raise taxes for their liberal government spending and what it removes from the local economy.
The Bloomington/Normal Economic Development CEO is Kyle Hamm. He’s friends with Jeff Giebelhausen (sp) and was an aide/staff of Dan Rutherford. The City also has a Director of Economic Development.
Liberals always claim there is a 1.5 multiplier where every dollar the government confiscated and then spends generates $1.50 in economic gains. This number is suspect at best. The Wall Street Journal says it is not true because it fails to consider that every dollar the government takes is a dollar less for people to spend. The only real way it could generate economic activity is if dollars that are taken were dollars people were planning to save. Of course that robs future growth to get current growth.
More new from Downtown Economic Development:
http://www.cityblm.org/index.aspx?page=18&recordid=2179&returnURL=%2findex.aspx%3fpage%3d61