Newspaper Page Text
Spelman Spotlight September 29, 1979 Page 5
City Needs Local Option Tax
ta University Center Chancellor
Lisle Carter.
“It was their view that the tax
would help long range financial
problems, and I agree.”
According to Dick Layton,
commissioner of the department
of budget and planning, “If they
say that Maynard is running after
big business, they are smoking
opium.” Layton’s department is
providing information and
assistance to the mayor, city
council, and others pushing the
local option sales tax as well as to
the general public.
Layton further stated that those
contending that the local option
sales tax is a substitute rather
than a supplement to existing
revenues, are “misinterpreting
the law.” Layton explained that
property owners will be receiving
rollbacks in their property taxes
based on a rate equivalent to the
amount of revenues generated by
the sales tax during the previous
year. However, he continued, if
their property tax rate increases
from the previous year, they will
still have to pay more taxes than
the year before. But the im
portance of the sales tax to
property tax payers, he added, is
that city property tax rates will
always be about 10 mil less than
otherwise.
In a press conference held
earlier this month, Maynard said
the same concerning the reduc
tion in the city tax levy, but he
also said that the sales tax would
result in the county tax levy being
four mills less than it would be
without the slaes tax.
Layton sees the sales tax as the
best means of increasing
revenues for the city. “The city’s
financial problem is real,” he
said.
Property taxes, according to
Layton, no longer give the city
the kind of revenues it needs.
During the years 1974-1978, he ■
pointed out, the annual growth of
revenue from property taxes
declined from 11 Vt percent to 2.2
percent and is steadily
decreasing. 753 city positions, as
well as some other city hall
programs, have been abolished,
he said, and this year 6.4 million
dollars were cut from the budget,
resulting in a freeing of an
equivalent of 122 police positions
for a twelve month period, a cut
of 3 million dollars for equipment
replacement, and a decrease in
the budget of every city agency.
Layton stated that the biggest
problem in the public safety
department is morale, which is
due to insufficient funds. In ad
dition, he stated that the average
city employee got about a seven
percent pay increase during the
years 1974-1979, while the in
flation rate for the same period
was 25 percent.
Layton admits that the sales tax
is a regressive tax because it con
sumes more of low income than
high income, but, he stated, “The
same people who are opposing
the sales tax did not raise a whim
per when garbage rates went up
and water and sewage rates went
up, both of which are more
regressive than the sale tax.”
Layton stated that the mayor
feels that ihe occupational tax,
which is favored by the coalition
as an alternative to the sales tax,
would be a “righteous tax” if it
was put of a graduated scale.
“But the overwhelming fact,”
Layton added, “is that the gover
nor, lieutenant governor, and
others in the state legislature op
pose such a tax and have
threatened tp strip the city of its
legal right to levy an oc
cupational tax.”
The sales tax is the best option,
according to Layton, because it
has more elasticity. “Over the
next five years,” he said, “the
sales tax growth rate will be over
ten times more than the property
tax rate.”
According to the report
produced by the Office of Budget
and Planning, “The property tax
and sales tax complement each
other: while the sales tax keeps
pace better in an inflationary
period, the property tax does not
fall as rapidly in a recessionary
period.” Thus, Citizens for Atlan
ta/Fulton feel that an extra tax
base offers the advantages of a
diversified tax base.
In a statement earlier this mon
th, Maynard Pledged, “We will
continue to do our part to cut
costs and live frugally. The voters
need to do their pai^t October 2 to
keep Atlanta and Fulton County
great.”
Local Option Tax Hurts Poor
Atlanta will receive a tax
rollback of $9 million, according
to figures published in a recent
Atlanta Constitution article. Of
the businesses that will profit
from the tax rollback, the three
business which stand to gain the
most are Southern Bell
Telephone Co., Georgia Power
Co., and IBM Corporation. Using
1979 figures not adjusted for in
flation,” The Atlanta Con
stitution stated “the largest single
rollback would be $2,199 million
for Southern Bell Telephone Co.”
Georgia Power Co., who pays
Fulton and Atlanta $4.26 million
in property tax, will get a
rollback of $960,000, and IBM’s
rollback will be $511,000.
Even though Atlantans will be
faced with higher sales taxes and
big businesses will gain, if the
referendum is adopted, Mayor
Maynard J ackson, Fulton County
Commissioner Michael Lomax,
Campaign Coordinator of
Citizens for Atlanta/ Fulton,
Milton Farris, Fulton County
Commissioner, and other city of
ficials feel that the 1 cent sales
tax increase is the most feasible
tax alternative for Atlanta.
Professor Reed disagrees with
the city officials. He says that the
sales tax is not the most feasible
alternative for taxation, and that
other options do exist. He stated,
“The occupational tax is the least
regressive of the alternatives
provided it is done on a
graduated scale. The 1 percent
sales tax increase is the only op
tion they (the proponents) have
decided to confront.”
In light of negative
ramifications that the local op
tion sales tax will have on the
black community, and the con
tention of opponents like Reed
that other alternatives are
tangible. The decision of Mayor
J ackson to propose rather than
oppose the referendum has lead
many opponents to believe that
their motives transcend interest
in the economic sovereignty of
Atlanta.
John Boone, Chairman of the
Coalition Against the Local Op
tion Sales Tax, told the Atlanta
Constitution in an article on Sep
tember 7, “Sadley, we suspect the
Mayor’s political ambitions are at
the heart of this matter. The first
year windfall from the sales tax
will give the mayor a wad of pork
barrel money he can use to
grease the wheels of his cam
paign for the U.S. Senate. And
when the huge property tax
rollback comes, big business will
be more than willing to hold its
nose and donate money.”
Perhaps a voter would think
that the mayor truly felt that the
local sales tax is the only way to
give Atlanta a wider revenue
base. But the opponents say
political motivations have had an
impact on the mayor’s decision.
The opponents support their
belief by reminding citizens of
the mayor’s stance less than
twelve months ago.
On September 29, 1978 Mayor
J ackson, on the local option sales
tax, stated, “Even though the
Abortion
Controversy
Pro-Life groups have ueen in
existence for as long as the pro
abortion groups. In 1973, the first
year that the Supreme Court
ruled in favor of abortions, Pro
life groups were working to limit
the legislation. “The managed to
write on a foreign aid bill...” said
Painter. “In essence what the bill
said is that no monies could be
used in countries in which we
were giving foreign aid for abor
tions... Yet in third world coun
tries their major problem is over
population...”
The Pro-life groups are diver
sified and many. They include the
Catholic Church, the John Birch
Society, the KKK, pro
mandatory motherhood groups
and a list of others. “The Catholic
hierarchy certainly put a lot of
Local Option Sales tax would be
a quick solution to the city of
Atlanta’s budget needs, I have
decided, after much study, after
widespread consultation with
citizens of every income level
and elected officials, and after
my most earnest and prayerful
considerations, that I cannot sup
port the local sales tax under
present conditions.” The mayor
stated last year that unless
adequate trade-offs for low-
income families and renters
would be provided, he would not
support the referendum. He also
itemized things that he would like
to see done in the city for the low
income family before he would
support the local sales tax option.
Jones argues, however, that the
mayor is now supporting the op
tion and changes he (the mayor)
suggested have not been
materialized. “The mayor has not
made any effort to see that his
contentions are met. Nothing has
been done, and now he supports
money in this whole thing. I want
to be very careful not to include
the average Catholic parishoner”
Painter remarked. “But the
Catholic hierarchy... pours
literally millions of dollars into
the movement.”
To the charge that the Catholic
Church pours millions into anti
abortion propaganda, Father
Bishop responded, “...The
Catholic Church should use its
money and resources—and we
don’t have as much as people
think—but some of the money
that’s spent for other things
should be made available for sup
portive help to women who are in
difficult pregnancies.”
“I do not support all of the pro
life organizations,” continued
Father Bishop. “I hesitate to call
some of them pro-life because if
an organization such as the
KKK...takes a position against
abortion but does nothing for the
quality of human life...then I
think that you can talk about the
anti-abortion plank of the KKK,
but I am not about to call the
KKK pro-life.”
the referendum.”
Opponents contend that
Michael Lomax is also supporting
the referendum for personal
reasons. An Atlanta Constitution
editorial said, “Lomax had it all
figured out, too. He would use
the prestige, money and people
involved in the local option sales
tax for his campaign. To sweeten
the pot, he committed money to
Brown-Gray public relations firm
for his campaign and Brown-
Gray is the same firm that the
downtown businessmen con
tracted to run the local-option
sales tax campaign.” Jones stated
that Michael Lomax clearly
wants to be mayor.
Aside from the political
motives of various officials, the
opponents believe that the mayor
is attempting to rally black sup
port for the referendum by ap
pealing to what they call “selfish
class interest,” and at the same
time frighten poor people into
voting affirmatively. The
Self-Protection
tacks, especially in cases of rape.
According to Miss Claudia Bar
nes of the Grady Rape Crises
Center, rapists are usually
repeaters. Their victims range
from 2 months to 95 years with
25% of them being less than 15.
The Grady Rape Crisis Center
assists in the legal and medical
aspects of rape. It provides a 24
hour hotline (659-RAPE), and
referral service. Mrs. Annette
Church, director of the Atlanta
University Center Student Crisis
Center provided information on
counseling and psychiatric ser
vices for victims of physical and
sexual assault provided by the
Center. Although located on
Spelman’s campus, the services
are extended to anyone in the
Atlanta University Center. Mrs.
Cynthia Jenkins, director of the
Family Planning, also located on
Spelman’s campus added that
there is an increasing rate of
Coalition Against The Local Op
tion Sales Tax stated in its report,
“Blatant scare tactics are being
used to persuade poor people to
support the referendum. The
mayor and his supporters are
telling poor black voters in
cluding the elderly people on
fixed incomes, that unless the
referendum passes, social
program will be discontinued and
that city services, such as police,
and garbage collection, will be
eliminated or curtailed.” The
report goes on to explain that the
real fact is that the funds for
many social programs come from
federal monies.
The opponents view the local
sales tax referendum as more
than just a law to be decided on
the provide additional money for
a city that is running out of
revenue avenues. They see the
issue as including personal
political motives and the interest
of big business standing in the
foreground.
assault and battery, especially to
females by their male friends, in
the Atlanta University Center.
Mr. Carrell Smith, Director of
Public Safety for the Atlanta
University Center, described
changes in security outlined in
the new safety manual to be
issued during registration.
—Voting—
general election; however, this is
1979 and we the students of the
Atlanta University Center can
and must make our presence
known at the polls. As members
of the “talented tenth,” if we do
not vote, we demonstrate to the
cynical white public that we are
nothing more than irresponsible,
chicken-loving, watermelon-eati
ng, disco-tap dancers without
enough guile or common sense to
shuffle down to the polls and
make a difference.
Remember brethren—“One
way to take control of our lives is
through the ballot box.”