Thursday, August 25, 2011

Prepare for Double-Dip - Keynesian Theory Doesn't Work

While is may take a while to FULLY hit Peoria, it's coming. The next major building projects that are tax-sucking is Bel-Wood and the County and City's misguided plan to build an Opportunity Center supposedly for minorities who want to open a business. (I attended the first public meeting in 2007 on this plan and the consultant said approximately 30,000 sq. ft. would be needed with dozens of employees Those in attendance were mainly black, including members of the Black Chamber of Commerce).

Sure we have the unneeded Cat Visitors Center offering nothing in return for shareholders like my wife and I. And a 100 million dollar planned Peoria Park District expansion. And the hotel expansion that the public will be eventually paying for as they are still paying for the RiverPlex as you read in the JS, Sunday, August 21. The Riverplex, that draws 51% of it's user's from outside the Park districts tax base, has never been able to meet it's bond payments and interest despite projection of not only covering those costS but was projected in the JS to be making a PROFIT of $600,000 a year by now!!!

Expect new taxes or increased EVA costs to property owners in effect again in 2010 and to be expected in 2011 if lieu of an ACTUAL property tax INCREASES. Expect the County to turn to taxpayers in about the 6th year of new PRM for tax support if the $16 million dollar endowment needed doesn't come through. (The 16 million figure is not mine but a figure in print from the Chairman of the Civic Federation; a group that I believe has now been replaced by Peoria Next and the Angels groups.

Actually, there are a lot of programs like SCOPE, Peoria Next, Peoria Angels, the Innovation Center, Bradley, Workforce Development, ICC, etc. but the Democrats want more voters and the Republicans are still big on compassion, despite the havoc more government welfare has raised.

And then thier is an over-abundance of do-gooders with big egos in the area. Think of FireFly with it's overall bankruptcy costs to all concerned hovering between $60-100 million. Includes over $6 million lost to local taxpayers. Even Peoria County Treasurer, Tripp O'Connor told the County Board, Firely couldn't fail.

Having served with a couple of welfare type groups somewhat similar, most of these "needy" are looking for another government financial handout. Part of Democrat Peoria City Manager Pat Urich's plan to help spread the wealth.

There are no major new building projects on the horizon, most of them with the exception of BASS PRO, are tax sucking, not tax payers. Cat has just announced new building but mainly in foreign countries where most major corporations shield their income tax dollars as the U.S. has the first or second largest punitive earning tax in the world.

Most of the largest employment gains have been in medical in Peoria but the cost of all the new medical buildings and sophisticated equipment will be paid by the "haves" who are going to "have" less under the spend and tax politicians, both Democrats and many Republicans.

No, the Keynesian theory never did work. While it's plan was to spend public money to keep people employed, they were employed largely in the public sector (Federal sector mainly) that is tax collecting not tax paying as is the private sector that supports the public sector with profits on which they are taxed. Yes, money needs to be spent to keep people employed BUT ONLY IF YOU CAN AFFORD IT WITHOUT RAISING TAXES. And spent to support the private sector that turns out a product. More taxes and regulations are especially hard on the small and medium sized businesses that have few places to "hide" their gains from governments greedy hands.

Yes, a 2nd collapse may already be here. Not even people who have fully paid for their homes are safe as your politicians can raise your EVA tax rate even on houses that are going down in value. Look closely at where these "extra" dollars being taken from you, are going.

Obama's spread the wealth plan is working even though some of it major effects won't be noted until AFTER the 2012 election.

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