Saturday, July 14, 2007

We're from the government, and we're here to help...

"If I knew for a certainty that a man was coming to my house with the conscious design of doing me good, I should run for my life."...Henry David Thoreau

I see that Mitch Daniels and some of our legislators have decided to try to help straighten out this property tax mess. Now there's a scary thought. I'm not convinced that a politicians thought processes are really going to accomplish what needs to be accomplished.

I saw an example of that thought process in my hometown a couple of weeks ago. A local restaurant encountered some difficulties with it's cash flow, and needed to raise some emergency funds. Just about anybody that has been in business could certainly sympathize with that. The restaurant is very important to the small town's economy, and since most of the normal channels for obtaining funding were unavailable, a movement was started to raise the funds privately. A noble gesture, too be sure.

A couple of plans surfaced, one from a couple of politicians, and one from a local business person. Keep in mind the object was to raise $16,000.00 to help the restaurant.

The poiticians' plan involved issuing notes for $1000.00 each. The holders of the notes would receive the principle and 6% interest on that note in two years, and in addition would also receive two free meals a week for as long as they held the note.
Doing a little math then says that each $1000.00 note has the potential of costing the restaurant $5228.00. Caught up in the fever of helping out, 51 notes were sold at last count, so the need for $16,000.00 ended up saddling the business with a $266,628.00 liability. How's that for helping out?

The business person's plan was to sell $16,000.00 worth of gift certificates, giving the restaurant the cash it needed, with only the obligation to honor the certificates. Admittidly not as flashy as the politicians' plan, but probably more in keeping with the original plan, which started out being to help the restaurant.

So forgive me if I get a little worried when politicians say they're going to help us out.

I've about had as much of their help as I can stand.

3 Comments:

Anonymous kevin w said...

It's like this property tax fiasco, the politickers were too damn dumb to just go ahead and issue tax bills based on last years taxes at the normal times and collect the additional balance when it gets figured out.

However I do not endorse the property tax or the increase but untill a different way is found at least they could have had some income coming in.

8:09 PM  
Blogger Endiana.com said...

Does anyone remember 2004 when the only candidate opposing property tax was the Libertarian?

9:56 PM  
Anonymous kevin said...

2004, the year of my first straight Libertarian ballot. More to come.

9:51 PM  

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