Another brilliant idea

Submitted by Bill St. Clair on Mon, 28 May 2001 10:02:58 GMT
FROM MOUNTAIN MEDIA
FOR IMMEDIATE RELEASE DATED AUG. 6, 2000
THE LIBERTARIAN, By Vin Suprynowicz
Another brilliant idea

When Professor Wilson and his "Progressives" introduced the personal income tax in the early years of this century, scores of Americans reported earning millions of dollars per year.

Within a handful of years, the number of citizens reporting million-dollar incomes had dropped to virtually nil.

Why? How could all those millionaire have gone broke during the boom times of the early '20s?

The answer, of course, is that they didn't. They merely hired lawyers and accountants who knew how to set up corporations, foundations and family trusts, so less of their cash flow showed up as "taxable personal income."

Economists have long understood that when you tax a behavior, you create an incentive for people to do less of it.

Imagine the ferry boat which has been charging 25 cents to haul travelers across the river. Nearby, a bridge opens up, charging little or nothing. As business falls off, the ferry man is tempted to raise his rate to 50 cents -- and then a dollar -- in order to keep covering his overhead -- including the large staff of folks assigned to collect the fares. Is this likely to work?

The city of Las Vegas believes it has to offer indirect subsidies to get businesses to locate or stay downtown, because fewer and fewer people go downtown unless they must -- to pay a parking fine, say.

So, the city builds tax-subsidized parking garages as an incentive to those businesses that can be conned into locating or expanding downtown -- even if the city has to illegally seize private property to do so, even if they end up building basement parking garages under projects that fail before they're done, like that splendid fenced-in hole now known as NeoNecropolis. (Memo to James Cameron: cheap location available for "The Abyss, II.")

These garages often sit three-quarters empty, but the city still has to pay interest on the money it borrowed to build them. Now: Where to get that money?

Wednesday the Las Vegas City Council came up with a brilliant solution: Raise parking meter fees -- already doubled from 25 cents in 1996 -- to a dollar.

Even though parking meters were originally justified as a way to benefit merchants by encouraging customer turnover -- not as a revenue measure, since taxpayers had already paid for the streets and obviously couldn't be taxed a second time to use them -- this is now justified with the promise that it will raise an additional $865,000 per year to pay the debt service on the half-empty downtown parking garages, while also covering the salaries of the city's 25 meter maids.

"If a person wants to come downtown, a dollar isn't going to deter them," explains Mark Paris, president of the Fremont Street Experience.

Oh, good one. I've got a couple of extra bucks, honey -- want to go downtown and watch the crack whores roll the winos?

A couple of bucks won't deter someone who really "wants to ride the ferry," either. But the ferry's still going out of business, isn't it?

A few miles to the south of City Hall, the Las Vegas Strip offers newer, flashier entertainment and hardly anyone pays a dime for parking -- you don't even have to walk across the street, or remember to "get your ticket stamped."

Las Vegans have already demonstrated they'll drive miles out of their way to shop or see a movie at some suburban mall with well-lit, ground-level parking. Why do the councilmen think the only "movies" being shown at NeoNecropolis these days are the security surveillance videos?

Outside the city limits, the Las Vegas Strip shows us the free market at work -- bold, creative entrepreneurs vying with each other in open competition to offer ever better bargains to the paying public.

North of the Stratosphere Tower, the traveler quickly realizes he has entered an enclave laboring under a very different worldview -- kind of like crossing the old line from West Berlin into East Berlin. New businesses are scared off or bankrupted by protectionist regulators who look with disdain at upstarts like Froggy's or the Topless Girls of Glitter Gulch, scrambling to "show them who's boss" by coming up with new, ever more expensive "code violations." (Yes, the "Topless Girls" survived -- but owner Herb Pastore re-invested his profits in New Orleans, not here.)

Small businesses -- groceries, gas stations, restaurants, dry cleaners, all going mom-and-pop concerns -- are seized under eminent domain and bulldozed to make room for expensive, tax-subsidized white elephants designed to benefit established downtown casino owners who prefer to keep their own reinvestment to a minimum, while charging $4.50 for a side order of asparagus. But don't worry -- it's all been carefully thought out, and the result will be a huge jump in gaming tax revenues ... any day now.

As the years go by, are any of these promises kept? Instead, the city fathers seem puzzled that downtown business continues to stagnate.

Oh, whatever shall we do? Here's an idea: let's further punish the few folks who still do go downtown, by quadrupling the parking fee!

After all, it worked for the British in Massachusetts, the Austrians in Switzerland ...

Would the last one out of downtown, please turn out the lights?


Vin Suprynowicz is assistant editorial page editor of the Las Vegas Review-Journal. His book, "Send in the Waco Killers: Essays on the Freedom Movement, 1993-1998," is available by dialing 1-800-244-2224; or via web site http://www.thespiritof76.com/wacokillers.html.


Vin Suprynowicz, vin@lvrj.com

"When great changes occur in history, when great principles are involved, as a rule the majority are wrong. The minority are right." -- Eugene V. Debs (1855-1926)

"The whole aim of practical politics is to keep the populace alarmed -- and thus clamorous to be led to safety -- by menacing it with an endless series of hobgoblins, all of them imaginary." -- H.L. Mencken

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