Our Destiny Lies NOT in Tax Trickery
By Dr. Don Racheter 
 

The recent overwhelming rejection (15% for, 85% against[1]) of “Project Destiny” by the voters of three central Iowa counties (Dallas, Polk, and Warren) is further evidence that taxpayers do not appreciate politicians, bureaucrats, and other elites trying to manipulate and deceive them.  Project Destiny involved an attempt to raise the sales tax in these communities by 17% (from six to seven cents on the dollar) and use the proceeds for cultural attractions like bike paths, the zoo, and botanical center as well as unspecified “capital improvements,” “debt relief,” and “property tax relief” by the local governments in the three counties.[2] 

A special “Yes to Destiny” committee was formed to promote the tax increase and reportedly raised and spent over $750,000 on their effort, while the “No to Destiny” opposition only raised and spent around $7,000.[3] The head of the opposition group, George Davey, explained the very disparate results of the 99 to 1 spending disadvantage by saying "When you're peddling facts against fiction, you get a lot of bang for your buck!"[4]  One opponent alleged that the “Yes to Deceit” campaign put out brochures that trumpeted the projected property tax reductions without ever mentioning they would be funded by the sales tax increase.[5] 

Since everyone pays sales taxes, including poor and working Iowans, while only those who own property get a break when property taxes are lowered, and those who own large amounts of property get the largest breaks, it was not surprising that labor unions and other groups that champion the poor and working class joined the tax groups in opposition to Project Destiny.[6]  Government leaders who were championing the plan were not as credible because of recent failures by school officials to spend money raised by a tax increase as promised and because of the Central Iowa Employment and Training Consortium (CIETC) scandal.[7]

Many taxpayers also suspected the promised property tax relief would be a sham.  What one pays in property tax is a multiplication of the millage rate times the assessed valuation of the property, so even if the tax rate is reduced, if the assessed value of the property is increased, the taxpayer may end up paying as much, or even more, from the supposed “tax cut.”  Having seen this ploy played out time and again by government officials, taxpayers were understandably suspicious of how much, if any, benefit they would actually receive from the Project Destiny plan. 

We have seen many instances where Iowans have voted by over 60% to approve increased taxation for bonds to construct a new elementary school in a district with increased enrollment when officials have made a case with the facts.  However, when leaders try to “pull a fast one,” or are perceived as doing so, as happened with Yes to Destiny, taxpayers are quick to use their constitutional protection of the right to vote on increasing their taxes to “just say NO.”  It is vital that we not give up this right to vote on sales tax increases, bond issues, and other proposed tax increases as has been proposed in the Iowa Legislature by the Iowa Association of School Boards.[8]