Comments on Advance Indiana™: Fort Wayne Mayoral Candidate Mitch Harper Cites Overly-Generous Tax Abatement For School Funding Woes

Which came first? The chicken or the egg? Giving a...

2015-03-01T16:10:05.939-05:00

Which came first? The chicken or the egg? Giving a tax break to one group of taxpayers results in a shift of taxes to those not afforded the tax break--unless--there is a corresponding cut in spending to make up for the lost revenues and any increased spending required to support infrastructure for the "expanding" business less new revenues generated from the business expansion. Tax abatements tend to result in higher tax rates--at least until the mandated caps are met. Of course, local governments have creative ways of getting around the caps.

Anonymous - Actually, what I described to her - a...

2015-03-01T14:54:11.801-05:00

Anonymous -

Actually, what I described to her - and others - is what you have outlined in your first and second paragraphs.

The edited part that Ms. Rose used is not complete.

Anon 10:50... I understand your position. On the ...

2015-02-27T12:11:30.688-05:00

Anon 10:50... I understand your position. On the rare occasion a Democrat is right, I know the politician is a Democrat and I will not, under any circumstances, ever again vote for a Democrat.

He's right, but he's GOP, and I will not, ...

2015-02-27T10:50:30.821-05:00

He's right, but he's GOP, and I will not, under any circumstances, vote for a GOP candidate.

Nothing against Mr. Harper but he is incorrect and...

2015-02-27T10:25:24.792-05:00

Nothing against Mr. Harper but he is incorrect and so, to a lesser degree, is the TV reporter.

Abatement and TIF do not reduce the amount available but rather SHIFT the burden of who pays from the favored (those who receive abatement or own property in a TIF) to the unfavored (everyone else). The favored either don't pay (abatement) or their payments are used to more directly enhance their own property (TIF).

While those at the caps are shielded from the shift, those not at the cap make up the difference until such time as they reach the caps.

If anything, the TV reporter might have a slightly better take in that the way the caps work, it can reduce what any unit of local government actually gets in the end. Still, after changes over the last decade, schools are much less dependent on property tax and are much less affected by the caps.