Approach to taxes is key to success in this economy

Published in the Culpeper Star Exponent
Monday, May 9, 2011

 

Though there is a general perception that the economy is improving. We are all painfully aware of fuel costs and their inflationary effects. Hearing the challenges of our local governments in developing budgets, it is clear that in order to keep taxes low we will need more revenue side solutions. I applaud our local government’s efforts to keep taxes low. Tax side solutions have a diminishing return on the local economy. This would pull dollars away from consumer and business disposable and discretionary income at a time when reserves are thin. There is no debate that taxes are a necessary part of our economy. It is the way that we approach the issue that makes all of the difference.

Congratulations to the Board of Supervisors for delaying the Traffic Impact Fee (TIF) implementation until next year. Considering the new transportation funding in place from Richmond, the need appears to be diminished.
Congratulations to the town and the county for voting to approve the Voluntary Settlement of Annexation and Utility Issues between the town and county. This is a model of leadership and collaboration that will strengthen our economic future.

Both issues are significant in moving our local economy forward. However, it is vital that we continue to focus on job creation and other economic strategies for improving Culpeper’s economy.

Jobs offer solutions to many of the challenges that we face. According to a report by Charles B. Kennington Economist - Research Division Virginia Economic Development Partnership, “In addition to the direct jobs created, basic industry employment generates multiplier effects. A new or expanding industry creates indirect employment and output by increasing the demand for business services, raw materials, intermediate goods, and the like. And, the increase in activity stimulates demand for consumer goods and personal services.” New jobs can contribute exponentially to our local economy.

In addition, we as businesses and citizens have opportunities to be creative in delivering additional revenue into the local economy every day. We can make a difference by choosing to buy locally as described in the Be a Culpeper Local educational materials. Another creative example is Chamber Cash for anyone to purchase as gifts, redeemable at only local businesses and sold at the Chamber office.

We can also showcase Culpeper as members of civic groups, church organizations, sports groups, and professional organizations. Inviting your groups from outside of Culpeper to host their meeting or competition here in Culpeper can have a significant impact on the local revenues (and potentially additional jobs).

We have opportunities every day to shape decisions, stimulate our economy, and find creative solutions. Our economic prosperity depends on it.

Jim Charapich is the President/CEO of the Culpeper Chamber of Commerce. He can be reached at jcharapich@culpepervachamber.com.