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Tax Rate vs. Taxes Collected


For the edification of the taxpaying public, I believe it's time to have a conversation about the distinction between Tax Rate and Tax Dollars Collected. Much lip service has been given to fiscal restraint by using the stability of the tax rate to create the illusion of stability in spending. The public needs to shift its focus onto the TOTAL BUDGETS and away from the tax rates.

Here's what every Victorian should understand:
If the taxing entities didn't increase their budgets, (overall) property taxes would not increase*, despite an increase in total property assessments. (*assuming flat sales tax collections)

The tax rate should be set based on the tight budgeting for the justified needs of each taxing entity. Setting collections by simply multiplying a static tax rate with the inevitable increase in assessments is a terribly dishonest confiscation of the fruits of the productive segments of society.

Let’s take a look at what can happen to tax collections while the tax rate stays the same. Collections have increased 33% from 2004 to 2009 with the same tax rate.

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Source: Victoria County Budget


See also: The Tax Rate Deception