Keep an eye on local taxes

As the economy teeters, much of the nation's attention has been focused on Washington. Many voices have been urging Congress and the new president to avoid tax increases, which would reduce the public's ability to spend and further slow the exchange of goods and services.

Little attention, however, seems to be paid to what local governments are doing. That's too bad. As a report in this newspaper made clear earlier this week, many local governments in Utah are raising taxes. In addition, a lot of Utahns live in places where several local governments, from school districts to cities and counties, are piling on tax increases.

If tax increases in Washington hurt the economy, it follows that local tax increases do the same for local economies. They certainly have a lingering effect on economic development. In struggling times, companies will look to settle in places where tax burdens — on themselves and their employees — are low.

The Utah Taxpayers Association recently released its own analysis of the tax burden Utahns face in relation to the rest of the nation. When state and local government tax burdens were considered separate from federal taxes, Utahns had the 11th highest taxes in the nation. That ranking stayed the same when federal taxes were added in.

Those figures were from fiscal year 2006, so they may have changed. In fact, the state Legislature has reduced taxes since then. But local governments seem to be working hard to make up the difference.

As this newspaper reported, 81 local governments in Utah raised property taxes this year. They had to post their intent to do so and hold public hearings, but some of those hearings were poorly attended. Riverton tripled its share of annual property tax bills. Iron County raised the annual tax on a typical $250,000 home by $254 in the unincorporated area.

In each of these governments, the explanation is virtually the same. The local government has to keep up with rising costs, mainly from fuel. Of course, fuel costs have fallen considerably since then.

We don't doubt the validity of these reasons. Fire trucks, police cars and other city vehicles have to keep moving, regardless of cost. Municipal services are essential and, in some cases, lifesaving.

But we also don't doubt that each tax increase has a negative effect on the economy, and that can be especially troublesome at a time when the world seems to be paddling hard to keep its head above water.

In this nation, there is no such thing as a federal taxpayer or a local taxpayer. There is only you. And as you no doubt know, it all adds up.

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