Guest opinion By Jim Kirkland

Thank you for speaking the truth about the proposed $70 million school bond issue.
Here is my two cents worth on the proposal. I really resent this being presented as if it was not a tax increase, because it is. As a Financial Planner for more than 30 years I can tell you that the kind of thinking that influences the ‘Sales Pitch? for this tax is one of the causes of our current financial crisis. People cannot seem to tell the difference between a financial ‘Want? and a financial ‘Need.? Every day I see folks who continue to pay more than $100 per month for cable TV and $200 per month in dining out and $100 per month in entertainment and $200 per month in electrical to heat their hot tub and then tell me they are going to let their mortgage payment go into default because they cannot afford the payment! They leverage the future because they cannot tell the difference between a ‘Want? and a ‘Need.? They add to their ‘Debt? thinking its okay because its just part of their monthly budget.
The proposed school bond is coming from the minds of people who, it seems to me, think like the folks in my description above. ‘We can’t live with out it and it’s not really a tax increase, right? We just add it to the future and keep on paying.?
Since purchasing my building in 2001, the Property Taxes have increased from approximately $8,000 (the amount I originally budgeted for) to more than $21,000 in 2008. Add my home and the taxes I pay are rather substantial. The assessed taxable value for my building at 653 S. Lapeer road together with my home is $647,740. This is supposed to represent half of the actual value but my property would not sell for nearly this much in the current market. So, my tax is over-assessed as it is.
Anyway, here is the breakdown of the school district’s proposal to extend the 7-mill bond tax for 10 more years: Lets start with a lesson on what a mill costs you ? 1 mill costs $1 for every $1,000 of a property’s taxable value.
I am currently paying property taxes on a total assessed value of $642,740. The cost of 1 mill on my properties is $643 per year. The proposed school millage is 7 times that amount. The cost of 7 mills on my properties is $4,501 per year. The current proposal would extend this out for 10 ADDITIONAL years.
The impact on me and my small business is essentially the same as taking out a loan. The proposal to ask for $4,501 (or more) per year for 10 years is the same as adding a $45,000 debt to my already slumping shoulders and I am opposed to it. I would rather provide someone with a job they need but I cannot afford that with all the taxes these well meaning but fiscally irresponsible people are taking from me.
I do not know how you feel about it but I am already spending nearly $28,000 in property taxes per year as it is and enough is enough already! I had hoped that $4,500 of this would go away in just a few more years. But it won’t if the current proposal is approved. I have four children who have enjoyed or who are currently enjoying a quality education in our school system and I do not view the proposal as funding things that we cannot live without. Things that are truly necessities. Sure, they would be nice to have if things were prosperous but things are far from prosperous.
And while I am on the subject let me point out a few other items that most people are not aware of. The climate that exists toward we who own a small business is nothing less than hostile. I fear that just speaking out on this will get me labeled an ogre or someone who does not care about our children. It’s not fair! I have to pay taxes and fees and assessments and surcharges on so many things it would make your head spin, just because I am a business.
Just because I am a business, I have to pay property taxes on my furniture and fixtures! Yes, its called ‘Personal Property Tax? which treats a couch as if it were the same as a piece of real estate! Did you know that? How would like to pay property tax on that couch you bought 5 years ago?
Just because I am a business, I have to pay Federal Unemployment Tax and State Unemployment Tax, and Workers Compensation, and Self Regulatory Organization Fees, and License Fees, and Annual Company Filing Fees, and Social Security Taxes and Medicare Taxes, and Property Taxes, and Registration Fees, and the list goes on.
Just because I am a business, I have to pay more than $60,000 per year in these things. And now it looks like my Income Tax will probably be increased too. Did you know that the State of Michigan replaced the Single Business Tax with the State Business Tax and that this raised my State Business taxes from $3,000 to more than $12,000? This is in addition to the income tax I pay on my personal income.
And folks around here are wondering why unemployment is on the rise in our state! As an actual example, one of my employees was paid a wage of $25,000 in 2008. After paying for all the payroll taxes and unemployment taxes and workers compensation and medical benefits do you know how much it cost me to pay this person $25,000? Try $36,000! The environment for us small business owners has become ridiculous so please understand why I am reacting so strongly to this sales pitch about 7 mills for 10 more years.
I urge you to vote ‘No? on this school bond proposal and when they try to tell you it is not a tax increase, set them straight for me will you? Tell them our local business owners are already shouldering more than many are able to bear.
Just ask our friends who have gone under recently.
Jim Kirkland owns the DFC Financial Center in Oxford.