Using free cash to bring taxes down a waste of good Money

The mayor’s announcement last week that he will be taking $7 million of free cash to bring down the city’s tax rate is a waste of good money. Rather than taking $7 million in free cash from the city’s bank account to artificially lower taxes which are frankly running away, the mayor needs to cut the bloated budget by $7-$9 million, keep the $7 million dry in the free cash account.

The taxes will then take care of themselves, lowering themselves because the city is spending less.

We consider this a double header. Two goals are achieved at the same tie.

Less is more in the world we live in.

Tossing millions of free cash at the tax rate makes no economic sense if lower spending can achieve the same result.

Cash is king, even in the economic unreality permeating the confines of the mayor’s office at Everett City Hall.

The rationale of using free cash to bring down the tax rate is indefensible. The city’s Chief Financial Officer Eric Demas shouldecho his concerns.

But he won’t.

The mayor wouldn’t like that.

 

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