Is this Edmond’s Proposition 1, the levy lid lift the tipping point? Recently, the city’s finance director reported that sales revenues were dropping in contrast to the city’s overly optimistic budget projections. How much of that is due to inflation or general economic conditions is up for debate.
However, what is not up for debate is the rule in micro-economics called the Laffer Curve. This is the tipping point where government takes so much of the population’s disposal income away in the form of new taxes that its own revenues drop in relation to the increase.
The city of Edmonds adopted the Regional Fire Authority this year, and if the new levy lift on the ballot passes, a sizable portion of its population will be underwater financially. Some may have to move out.
A local government just cannot take on average $2,000 of disposal income away from residents without it affecting commerce.
Should the title above even be a question?
Lee Reeves
Edmonds
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