Do we need a restaurant tax here?
by Carl McCammon, Contributor
Oct 12, 2011 | 7 7 recommendations | email to a friend | print
Is there such a thing as a worthwhile tax? Yes, and no I have not lost my mind -- at least not completely so they say.

If a tax raises MORE money FOR its community than it COSTS the residents living in the SAME AREA ,then wouldn’t you consider it to be worthwhile tax? For example a restaurant tax. (Please understand the following numbers are used to substantiate this example and do NOT reflect actual or potential revenues generated by a tax of this type. However I am sure they are available somewhere.)

Let’s imagine that that the City implememts a 2 percent restaurant tax effective Jan. 1, 2012. Based on anticipated resturant meal sales over the course of 12 months this tax could generate $100,000.00 in tax INCOME for the City which could be used to supplement the Tourism Commission’s efforts to expand tourism in our county. ( to be explained later )

Of this $100,000.00 approximately $10,000.00 would come from you and I eating at the various establishments in and around our fair city. Less than $1.00 per person,

Now if someone asked you to invest $10,000.00 with a return of roughly 10 times over a twelve month period ---- wouldn’t you be inclined to say YES?

Additional dividends, recieved from these same dollars, would come from revenues generated by reinvesting this money back into our county.

Let’s imagine we assign $75,000.00 to the Tourism Commission which they will spend wisely, as they are OUR Tourism Commission, promoting the wonderful, under utilized natural resources in Trigg County.

I call them the 4 Ls : Lake Barkley, Lodging , Land Between the Lakes and Local Locals. ( incorporates events, business, museums, histioric land marks )

Now correctly reinvested the Commission increases tourism in our county by 10 percent . Therefore sales taxes go up, room taxes go up and local revenues increase, more jobs and everyone is just a happy little camper.

RIGHT?

So the burning question is if this analysis is essentially correct then how can we not see the logic in establishing this important revenue stream?

What do you think?

We want to read your ideas. Send them to The Cadiz Record, ATTN: What do you think? via mail (P.O. Box 1670, Cadiz, KY 42211), our office (58 Nunn Blvd.) or email (news@cadizrecord.com) with What do you think? in the subject line). Some responses will be published in our Letters to the Editor.

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