April 15 is Tax Day, that one day out of the year that puts individuals and business alike in a sour mood. Almost everyone thinks their taxes are too high. No one looks forward to paying them. But, as the famous saying attributed to iconic U.S. Supreme Court Justice Oliver Wendell Holmes Jr. goes, “Taxes are what we pay for a civilized society … .”
Amy Buckmaster
With an economy that has core elements of strength at a macro level, but is lagging in confidence at a micro level, school districts, local governments and nonprofit organizations are feeling financially squeezed as their needs appear to grow, but their checking accounts don’t. Layer on top of this the overall cost of living in the Bay Area and harder decisions are having to be made in homes and at public-serving agencies across our region.
Rosanne Foust
Local governments seek revenue increases to grow — or even continue in some cases — their services and operations. The go-to remedy often is increasing taxes and fees on businesses.
We hear it a lot: Businesses need to pay their fair share. It’s a catchy slogan that is part aspirational and part misleading.
The aspirational truth is that yes, we all want everyone and every organization to pay their fair share, business included. We could not agree more on this expectation.
The misleading element of this call to action is that, especially at the local level, businesses do, indeed, pay their fair share and then some. To truly be able to say that businesses aren’t paying their fair share would require the complete unpacking of all taxes, fees, charges and assessments that businesses do pay.
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Just as an example, if a developer wanted to build a new apartment complex almost anywhere on the Peninsula, they would be required to pay tens of thousands of dollars per unit in fees. In addition to the actual cost of construction of a project, the fees assessed by a city can reach several millions of dollars before one shovel of dirt is moved or one unit of housing is built.
Those fees, coupled with other local taxes, are paying not only for city staff, but for roads, sewers, parks, public safety and all of the other services offered by cities. A convincing argument can be made that businesses do pay their fair share to support our community.
Let us also not forget the philanthropic activities of our community businesses of all sizes. Due to their generosity of time, resources and money, local nonprofit organizations receive tens of millions of dollars each year to support the worthy causes that reinforce the social safety net of our society. These resources fill gaps in services government either does not provide or is underfunding.
This notion of fairness that pops up when more money is needed by governments at all levels also disguises some unpleasant truths. There is more than one tool in the box to ensure essential government operations and services are adequately funded. Yet, it seems cities increasingly look to raise more revenue without first looking to curtail spending or evaluate program and service efficacy and efficiency. Governing is about setting priorities. Continuing to raise taxes and fees without curtailing spending or implementing efficiencies is not sustainable and it is not good public policy.
We absolutely believe businesses have an obligation to financially contribute their fair share to funding government so that critical services and supports are made available to residents. But there is no denying the fact we are fast approaching a taxing tipping point where the funding structures in place for our local governments are reaching a level where it is becoming impractical to develop and sustain a local economy that nurtures innovation, fosters growth and is equitable and fair for all.
So, as the conversations continue about businesses paying their fair share, we encourage everyone — individuals, elected officials, activists — to step back to view the broader landscape of how businesses not only pay their fair share but also support our community and local economy.
Amy Buckmaster is the president and CEO, Chamber San Mateo County; Rosanne Foust is president and CEO, San Mateo County Economic Development Association (SAMCEDA).
Business and most individuals pay more than their "fair share." The top 1 percent earned 26.3 percent of total AGI and paid 45.8 percent of all federal in 2021, and the bottom half of taxpayers earned 10.4 percent of total AGI and paid ONLY 2.3 percent of all federal individual income taxes. So who isn't paying their fair share, the bottom half of tax payers. Regardless of these statistics, the problem isn't revenue, it's the city, county, state and federal government's who have a problem with spending more than they take in. Government's hand out raises and bonuses during down times, they allow unions to bleed companies and tax payers dry, they require fast food restaurants to pay $20 an hour without regard to what makes business sense, they siphon off money to pay for social issues and then these governments ask for more money.
Well stated, Not Co Common. And let’s not forget the lack of accountability for taxpayer money being wasted via incompetence. To wit, the $30+ billion lost to EDD fraud and the continuing $billions wasted on the train-to-nowhere. Locally, the $10 million lost due to safety equipment being left out in the rain. Any repercussions on our so called “officials”? Nope, just more tax measures. For those that are willing and able, move to a better run state.
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(2) comments
Business and most individuals pay more than their "fair share." The top 1 percent earned 26.3 percent of total AGI and paid 45.8 percent of all federal in 2021, and the bottom half of taxpayers earned 10.4 percent of total AGI and paid ONLY 2.3 percent of all federal individual income taxes. So who isn't paying their fair share, the bottom half of tax payers. Regardless of these statistics, the problem isn't revenue, it's the city, county, state and federal government's who have a problem with spending more than they take in. Government's hand out raises and bonuses during down times, they allow unions to bleed companies and tax payers dry, they require fast food restaurants to pay $20 an hour without regard to what makes business sense, they siphon off money to pay for social issues and then these governments ask for more money.
Well stated, Not Co Common. And let’s not forget the lack of accountability for taxpayer money being wasted via incompetence. To wit, the $30+ billion lost to EDD fraud and the continuing $billions wasted on the train-to-nowhere. Locally, the $10 million lost due to safety equipment being left out in the rain. Any repercussions on our so called “officials”? Nope, just more tax measures. For those that are willing and able, move to a better run state.
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Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.