{"id":31578,"date":"2022-04-12T08:30:31","date_gmt":"2022-04-12T13:30:31","guid":{"rendered":"https:\/\/itrfoundation.org\/?p=31578"},"modified":"2023-01-18T13:45:46","modified_gmt":"2023-01-18T19:45:46","slug":"benefiting-the-few-with-resources-from-the-many","status":"publish","type":"post","link":"https:\/\/itrfoundation.org\/benefiting-the-few-with-resources-from-the-many\/","title":{"rendered":"Benefiting the Few With Resources From the Many"},"content":{"rendered":"
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By Sarah Curry, DBA<\/p>\n

Most citizens expect the property taxes paid to their city to be used for road maintenance, snow removal, building maintenance, and of course, public safety. These activities are all considered core government services and functions. However, in current times we see some of our city governments spending considerable dollars on things that could be better managed by the private sector \u2013 and that\u2019s a problem.<\/p>\n

When local governments use taxpayer funds to subsidize highly specialized recreational activities, they are benefiting a tiny segment of the community at the expense of the whole community. The general taxpayer should not have to fund these projects, not only because they do not benefit most people, but because these city-owned services also unfairly compete with the private sector. The taxpayer cost of these subsidized activities is not just the direct tax subsidy, but also the lost tax revenue that would have been paid by private providers.<\/p>\n

In addition, these types of activities can result in a political constituency that benefits elected politicians and local bureaucrats. By providing a free or highly subsidized activity, cities create a special-interest group out of people interested in that activity who will lobby for its continuation and expansion, transferring the costs to taxpayers who may not benefit. For example, the losses incurred by special or unique activities are paid by all taxpayers for the benefit of only a (relatively) small group.<\/p>\n

To understand where our property taxes are going, we need to focus on the General Fund for cities.<\/p>\n

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