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City tax proposal raises questions
To the editor:
I read your article in Sunday's paper about the proposed 1 cent sales tax and have some questions that should be publicly answered before voters are expected to vote on the ordinance.
The money is to be used "to pay and remit past due federal and state income tax withholdings, employer and employee FICA and Medicare payroll tax contributions, federal and state unemployment tax contributions for periods prior to January 1, 2011."
We have heard much about what the city owes IRS, but how much does the city owe to Arkansas for "past due state income tax withholdings"? How much does the city owe for "employer and employee FICA and Medicare payroll tax contributions"? How much does the city owe for "federal and state unemployment tax contributions"? If the city owes a $3.2 million IRS debt, how much does the city really owe in total?
What are "the administrative charges of the State of Arkansas and required rebates"? A rebate is money paid back to a purchaser, as in I buy a new TV and get a rebate of $100 from the manufacturer, which means I send the manufacturer proof of purchase and they send me $100 for buying their product. How does that apply to this tax situation? For what is the State of Arkansas making "administrative charges"?
Federal and state income tax withholdings and employee FICA and Medicare payroll tax contributions were taken from city employees' earnings. Where did that money go, if not to the federal and state governments?
On a separate matter, but one raised by your article, if the 1/4-cent Police and Fire Tax generated $675,285 in 2011, where did that money go? Where is the new fire station voters were told would be built with that money?
I'm afraid this new tax is going to be very difficult to get passed by the voters of Blytheville because we do not know all the facts we need to know. Your newspaper should help present those facts and/or pressure the city government to make them public.