December 30th, 2003

Eymanomics Deserve Failing Grade

Eyman 25% local property tax cut initiative would be disaster for local governments!

Contact: Steve Zemke

206-999-6095

stevezemke (at) msn (dot) com

Worse than the old voodoo economics, Eyman wants you to believe that by cutting some $550 million a year in local property taxes that fund our cities, counties, fire districts, libraries, road districts and parks that this will suddenly “provide a strong stimulus by injecting $550 million into our state’s economy.” The problem is that the $550 million Eyman claims will help the economy is the same $550 million that is already being spent in our local communities. It is not new money. If there ever was a charlatan Eyman fits that definition.

Not to be outdone, could you please give me $100 so I can give you back $100 so you are now $100 richer? I love Eymanomics.

Deception and shoddy reasoning as usual continues for anti government proponent Tim Eyman. Announcing his intent to file an initiative in January to slash local property taxes by 25%, Eyman wants us to believe that cutting police and firemen’s jobs from our local communities will somehow produce the result that “jobs will be created and wages will go up.” Cutting local property taxes means less money for libraries, more librarians out of work. Who really believes that cutting local funds to repair roads or keep our parks open or keep police on the beat will somehow provide an economic boost to our economy?

Eyman says he wants to help “families and senior citizens.” Yet an across the board 25% local property tax cut reduces local services that seniors and families need to live in their communities. What an across the board local property tax cut really does is help the wealthy. Someone with a $1 million house gets 10X as much back as does someone that has a $100,000 house. So again according to Eyman lets give the most help to those that don’t need it and let’s give token support to those that need it most.

And let’s not tell local citizens the potholes in their local roads are not going to get fixed and that their library may only be open 1 or 2 days a week. Threats? No just real economics. If you remove 25% of the revenue to your local fire district it has no where else to get funds. Does it make sense as Eyman proposes to have repeated elections that cost the taxpayers extra money just to provide basic services we now have? In 2001 the city of Yakima noted that property taxes paid for 100% of its library funding, 75% of its street funds and 50% of its parks. Cut 25% and you have major impacts.

Cities and counties are already feeling the pinch as Eyman’s Initiative 747 kicks in and banked capacity is used up. Initiative 747 limited property tax growth to 1% a year, not allowing local government costs to even keep up with inflation. Even California in its worst moments only cut property tax growth to 2% under Prop. 9. And we now have all heard or seen the impacts of that experiment. Remember how we got the 1% value? Pure Eymanomics. The court overturned the 2% growth limit when it overturned Initiative 722, so Eyman out of spite arbitrarily decided to cut it to 1%.

Remember why Eyman is pushing this 25% local property tax cut besides it being a personal business decision as a self paid consultant? It came about because the legislature passed a 5 cent per gallon gas tax that Eyman opposed. Again Eymanomics spite. He first targeted reducing the state component of the property tax 25% until he realized that the state property tax was dedicated to K-12 education. It would have been a hard sell to remove $400 million per year (or $400 per student) from public education in this state. So now he wants us to believe that we’ll all be better off by drastically cutting local government services and giving the more wealthy property owners in this state a nice gift. Again not a very well thought out proposal.

Eyman’s latest anti government initiative is only good if you believe that I have a nice free house for you once you sign it over to me so I can give it back to you. There is no free lunch, unless of course you believe in Eymanomics.

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