Early Warnings Of Unsustainable Taxation
For years the Pulp has had postings beating the drum on how unsustainable it is to expand your local taxes faster than the income of your citizenry. It’s simple economics really. If you double the taxes while citizens increase their median income by half, then you are reaching ever deeper into their pockets. At some point there’s little disposable income left. Their homes are mortgaged to the hilt. However, in a “facts optional” political atmosphere, it’s what you want and how you feel about getting what you want that matters.

None other than Mr. Mike Nelson proclaimed while running for commish in 2006 that people in Orange County “want a high level of services and that requires taxes”. That was back when he had to explain how Carrboro taxes (not tax rates) more than doubled under his mayoral leadership.

Back in the open forum days of the Pulp, the usual crowd of political apologists (Mr. Fred Black, Ms. Terri Buckner, Mr. Joseph Capowski (as “Weaverguy”), Mr. George Entenmann, Mr. Marc Marcoplos, and Ms. Ruby Sinreich) all sung the praises of Mr. Nelson and howled about how Orange County was different. Here people wanted the “high level of services” and knew they must pay more for them. The fact that other counties and towns offer equal or better services at lower tax burdens was assiduously ignored.

Cracks Show As Even UNC Professors Feel Your Pain
The cracks in the Orange tax-and-spend foundation are finally showing. In a recent Chapel Hill News editorial, Mr. John J. Pringle, (C. Knox Massey Professor of Finance (Emeritus) at the Kenan-Flagler Business School at UNC) laid out the case supporting the Pulp’s proposition. Orange County had practiced, and is practicing, unsustainable taxation. Mr. Pringle pointed out that median house prices in the US averaged 2.1 times median income for two decades prior to 2001. Housing prices almost doubled to 4.1 times median family income post 2001. When the housing bubble burst by late 2008, prices had fallen by 25% for the bubble peak, according to a widely used national home price index used by Mr. Pringle.

Mr. Pringle cites his personal experience, “since 1993 when we moved into our house, our property tax has increased 249 percent, while during this same period the consumer inflation index increased 46 percent. Over the 15 years, inflation has averaged 2.5 percent per year, while our property taxes have increased by an average of 8.7 percent per year. In a single year, 2005, our property tax increased 42 percent, and from 2000 to 2008 more than doubled.”

Did income keep pace with this taxflation? No. “During the peak years of the housing bubble, from 2000 to 2006, house prices nationally rose 88 percent, while personal income rose only 30 percent. Social Security income is tied to the Consumer Price Index, which rose 17 percent.”

Orange Tea Party?
Will an “Orange tea party” tax revolt happen, much like what happened in Boston, Massachusetts in 1773? No. Unlike King George III, our local politicians are much more skilled in straddling fences and speaking out of both sides of their mouths.

Most importantly, the local media and political apologists will be sure not to place any responsibility for the present tax mess on incumbent local officials. Without someone connecting the dots, “It just happened”.

Mike Nelson – Archtypical Politician Without Responsibility
Sociopathic behavior is acceptable if exhibited by a politician. Deception, dishonesty, feigned interest may still be repulsive for many in personal interactions, but as a society, we accept such behavior in our politicians. It’s considered “part of the game”. It’s okay to say one thing and do the opposite. It’s okay to pretend to be what you aren’t. It’s okay to say you’re against tax rises while promoting a new tax.

After a decade of doubling the tax burden in Carrboro, in 2006 Mr. Nelson ran for the commish spot as the next rung in his climb for political glory. When questioned about his taxation record, he confidently responded that here people want a “high level of services” and know “they must pay more for them”. In part, his confidence exuded from a reliance that no one in the local media or political establishments would question his statement. The fact that other counties and towns offer equal or better services at lower tax burdens would not be mentioned.

After being elected in the Democratic primary, Orange County having one party rule, in 2007 during his first commish retreat, Mr. Nelson opined ”We need to dig down and find out really why we've had 18 years of tax increases. Eighteen years in a row is a long time.”

Then one year after speaking aloud about 18 years of tax increases, in 2008, Mr. Nelson was advocating for another tax. Mr. Nelson, like his successor as Carrboro mayor, Mr. Chilton, advocated vociferously for the ill-fated and highly rejected local option transfer tax. He even used the case of his retired elderly mother to support taxing home sales even more, claiming he would raise property taxes less, even though the proposed tax wasn't requried to be revenue neutral. Eluding Mr. Nelson’s steel trap financial mind is the fact he has raised the county tax burden more than the funds the transfer tax would've yielded. (See Carrboro Citizen Nelson Transfer Tax editorial.) Quite an accomplishment Mr. Nelson has achieved in less than one term in office as commish.

Retreats must be especially insightful times for Mr. Nelson. For in 2009, one year after asking for the transfer tax increase, Mr. Nelson again felt bad about county taxes. He noticed that the county is spending faster that county property taxes are rising. (Mr. Nelson ignored the fact that property taxes are rising faster than median income.) He was concerned that county spending would rise 5.8% annually over the next five years while property values were projected to rise just 3.9%.

In Mr. Nelson’s immortal words, ”I have a fundamental, philosophical, ideological problem with the way this organization had done budgeting. It's brought about tax increases.” This revelation comes from the person who oversaw a doubling of the Carrboro tax burden, far outpacing both median incomes AND property values in Carrboro. (See N & O Nelson Philosophy Story.)

A Hope For Change - Coming Campaign Converting The Image of Tax-and-Spenders Into Fiscal Conservatives
With 2009 bringing about a confluence of a local municipal election and a severe recession sliding into a depression, Pulpsters should be alert in looking for the coming campaign to remake the image of local incumbents. Local media and political apologists will create a wave of disinformation portraying incumbents as “holding the line”, “showing a tight fist”, and the ever popular “making the painful cuts” with regards to local budgets, and thus, local taxes. That these incumbents used the good times to build a bureaucratic infrastructure unsustainable even in the good times, much less the bad times, is irrelevant. That they raised your taxes way beyond increases in your income even in the good times is, likewise, irrelevant.

Pulpsters should not expect to hear cogent explanations as to why taxes have risen so in the last decade, except, of course, here at the fiercely non-partisan Pulp.

The closing of the Chapel Hill Horace Williams airport owned by UNC Chapel Hill is an eagerly awaited event by OPies. The insistence of UNC Health Care to maintain an airport in Orange County is viewed askance as not being sustainable. UNC Chapel Hill and the UNC Health Care system are forming a 15-member board to site a replacement airport ithe airport. With the creation of an airport board, OPies are concerned that building a new airport in Orange County is more than a pipe dream.

To soothe the progressive psyche, up to the plate steps former Chapel Hill Councilor, OPie propagandist, Carrboro Mayor political attack surrogate (aka ”Weaver Guy” on local political blogs and forums), and failed local transfer tax shill Joseph Capowski. Mr. Capowski wants to serve on the airport authority

Mr. Capowski is concerned about the airport board’s “too great authority,” which includes the power of eminent domain, i.e. the acquisition of of private property for public use. Writing to Chapel Hill Mayor Foy to secure the town's seat on that board, Mr. Capowski says, “Though I spent 21 years on the faculty of the med school, I do not believe that a UNC airport is the all-important need for the med school, the UNC hospitals and health care in North Carolina. Rather, an airport must be viewed in the context of the county and towns.”

Mr. Capowski, a contract UNC employee without any medical degree or tenure track position, has no known qualification in aviation, infrastructure siting, or emergency medicine logisitics, matching his expertise in taxation policy and character assessment.

On 28 April 2008, Chapel Hill Town Councilor Matt Czajkowski revealed once again that he’s not taking his political medications. He’s immune to bozo tax shilling.

Former Chapel Hill Councilperson, Orange Progressive propagandist, and Carrboro Mayor political attack surrogate (aka ”Weaver Guy” on local political blogs and forums) Joseph Capowski spoke at the town council meeting for the home equity tax/local land transfer tax vote on 6 May 2008. (See Hot Orange Capowski Shill Story.)

Councilor Czajkowski cast the lone dissenting vote against the local transfer tax resolution. Unbelievably, he claimed the home equity/land transfer tax was just a way for politicians not to be held accountable for the financial consequences of their growth policies. Again showing disturbing logic, he said, ”We need to put greater restraints on property taxes. To me, this is a backdoor tax that allows politicians to avoid higher property taxes.”

No word on how the rest of the council intends to administer medications to Councilor Czajkowski.

No word on what additional full time employee the town manager will now hire to address the Councilor Czajkowski “crisis”.

No word on whether or not the next state Bozo convention will be held in Chapelboro.

See N&O Capowski Shill Story.

In the 13 2008 Chapel Hill Herald, former Chapel Hill Councilperson , Orange Progressive propagandist, and Carrboro Mayor political attack surrogate (aka ”Weaver Guy” on local political blogs and forums) Joseph Capowski shills for the home equity tax/local land transfer tax vote on 6 May 2008. Mr. Capowski is a chair of Orange Citizens for Schools and Parks, the ad hoc pro transfer tax group started by Carrboro Mayor Mark Chilton and scheduled to evaporate after the vote. (See Hot Orange Chilton Story.)

In keeping with the objectives of fellow home equity tax shiller, tax-exempt expert, pollo asado eater, Carrboro developer & realtor, bourgeoisie rentier, black bag campaign poster expert, Carrboro mayor, and now water use guru Mr. Mark Chilton, Mr. Capowski is for the home equity tax. Not only is Mr. Capowski for the tax, he’s for southern Orange remaining a bedroom community that will keep on having to pay for developers’ profits. “Orange County's primary growth industry is residential housing with a great lifestyle, and this basic character should not be compromised by heedlessly seeking new industry that could lower our quality of life.”

Mr. Capowski fails to mention fully burdened impact fees, fees that would come out of the pocket of developers like his friend, developer Mayor Chilton.

Mr. Capowski fails to mention the cyclical nature of transfer taxes that tend to lag at the time most needed.

Mr. Capowski fails to mention that the tax is NOT dedicated for parks and schools.

Here’s Mr. Capowski’s shilling in all its glory:

“How should Orange County grow responsibly for its present and future citizens? In other words, how do we absorb more residents without destroying our great quality of life and becoming another casualty to too-fast growth that exceeds our infrastructure, with the result of crowded schools and highways, inadequate parks, and as we saw most recently, a water shortage?

Orange County is not like any other county in North Carolina. It ought not follow any abstract or state-provided growth formula. Where else do you have two employers, UNC and UNC Health Care, who pump in $2 billion a year in salaries and benefits, and another $1.1 billion in service and supply purchases? True, the university and Health Care don't pay property taxes, but they are responsible for the 30 percent higher median family income that Orange County enjoys compared to the state median income.

Our superior public schools and parks are the crown jewels that attract and retain our educated population, which in turn sustains our economy and the economies of surrounding counties. Generally, these are professors and scientists who are courted by universities around the country and often choose to live here to enjoy our quality of life. These amenities also contribute to our real estate stability, with steadily rising home costs without the boom-bust cycles that occur elsewhere.

Orange County's primary growth industry is residential housing with a great lifestyle, and this basic character should not be compromised by heedlessly seeking new industry that could lower our quality of life. That said, thoughtful commercial development is essential within the county's comprehensive land use plan. We are a renowned center of education and health care, and we should continue down this successful path.

Our growth demands that we build new schools and parks – and schools, by North Carolina law, are uniquely county functions. Historically, the one revenue source for school construction that county commissioners can control is the property tax, and it is already too high – high enough that many older citizens, who tend to be house-rich but income-poor, fear being taxed out of their homes. As a consequence, the county commissioners asked the legislature for another revenue stream, and after finally receiving permission, our commissioners have placed this question on the ballot for May 6: Real property transfer tax at the rate of up to four-tenths percent (0.4 percent) of value or consideration. Vote FOR or AGAINST.

This tax will apply to all real estate transactions in which money changes hands, including residential, commercial and unimproved properties. Gifts and inheritances are not affected. The county commissioners will apply the tax revenue to our county's schools and parks. Since the county is obligated to build schools, the question before us is not if we want additional taxes, but rather how do we want to be taxed?

Nobody, myself included, likes a new tax. So why do I advocate for it?

* The transfer tax allows property owners to enjoy increases in the value of their homes and businesses as long as they own them, without paying additional yearly property tax.

* The transfer tax payment is delayed until the property is sold, when the seller will receive revenue. Elderly people benefit here especially.

The NC Association of Realtors will spend a small fortune of statewide funds to fight this tax. You'll receive their handsome brochures and robo calls. Their fear is that if it passes here, it will spread to larger, fast-growth counties. This group is strongly opposed to increases in real estate taxes, even if these taxes are needed to pay for schools and other basic community services. It's nothing personal, high housing prices are bad for business. They argue, for example, that “this is not the time for a new tax.”

But what is their alternative? Don't build the next needed school? Keep raising the property tax to pay for it?

I chair a local grassroots group that believes that this tax is a necessity. We are funded entirely by local contributions. Please visit our Web site at 4schools4parks.com. We urgently need help to spread the truth about this measure. Can you help? Please send a check to Orange Citizens for Schools and Parks, P.O. Box 14, Chapel Hill, NC 27514. (Write your occupation and employer on the memo line.)

We urge Orange County voters to carefully examine the facts about the Land Transfer Tax and weigh the benefits and burdens of meeting part of our obligation to the future with this tax. Unfortunately, we cannot have it all without paying for it. Let's face it deliberately and fairly, together.”

Carolina North representatives held a meeting at Chapel Hill town hall to show off the Carolina North plans for the coming “Innovation Center”. They revealed that the first five year (2010 to 2015) CN plan could involve building the Innovation Center, moving the School of Law, building housing for faculty, staff, graduate students, and, of course Umstead Act free retail.

Former Chapel Hill town councilman, political municipal campaign surrogate, and Weaver Street denizen Joe Capowski echoed the concerns of dense developer, Capowski comrade, and Carrboro Mayor, Mark Chilton. Mr. Capowski presented a powerpoint presentation on how CN is ”woefully” short on housing. ”The university considers only its employees, and many will move to Carolina North from rented space in Chapel Hill and Carrboro – a narrow but valid view.” Mr. Capowski didn't explain his vision how non-taxable CN housing would compensate Chapelboro for the strain on their municipal services.

See N&O CN story