Sales tax hike will hurt businesses and will drive shoppers awayPublished 8:35pm Wednesday, July 30, 2014
I do not live in Alex City, but I spend much of my disposable dollars there. Raising the current sales tax by nearly 12 percent from 8.5 percent to 9.5 percent will send my dollars somewhere else. I suspect those who can, will calculate the tax advantage of shopping elsewhere and do so. I am disappointed that a conservative city that extends tax advantages to outside employers would in turn need to raise the taxes upon its own citizens to repair roads that have been neglected.
I think that concept is backwards. Maybe a better solution would be to lower the sales tax below prevailing rates and drive more retail sales to Alex City. What if Alexander City was a tax haven for manufacturers, retail customers, and real estate buyers? Think about how many “outsiders” would spend their dollars in Alex City if the sales tax rate were, say 6 percent?