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Posts Tagged ‘rent seeking’

A tale of two cities

Tuesday, July 15th, 2008

Two Ohio cities have differing ideas on the proper taxation of entertainment admissions. In Youngstown, the Vindicator reports that “city council on Wednesday will consider reducing the admission tax charged on tickets to events at the [Chevrolet] center from 9.5 percent to 5.5 percent.” This is good news for event organizers, attendees, and perhaps even city government. Youngstown deputy finance director Kyle Miasek correctly notes that attendance will increase due to the lower cost of admission. The Vindicator forgot to take this fact into account in its analysis of the financial effects this measure will have, however:

The 9.5 percent tax generated about $82,000 for the city between February and May, he said. With a 5.5 percent tax during that same time period, the city’s profit would have been about $47,500.

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The answer’s easy when it’s free

Monday, July 14th, 2008

The Seneca County Courthouse is important. So important, it’s worth the investment required to preserve it. That’s what the Toledo Blade editorial staff said on Sunday. The county voters disagree; they voted down a measure devoting funds to preserve the building. Private entrepreneurs disagree; obviously they haven’t found a profitable use for it, or they would have purchased it. The editorial board seems to know something all these others don’t, as it continues to speak to the building’s merits. Or does it? It hasn’t put up the money to preserve the money. Instead, it called on Governor Strickland to keep “rogue” commissioners, who are simply responding to the message voters sent, from tearing down the old Seneca County Courthouse. In other words, it’s demanding that someone else (Ohio taxpayers) finance its cause. If it really is a cause worthy of investment, why doesn’t the Blade spare us its emotional plea and buy the building with its own money?