May 19, 2001 – In their responses to Source polls on public spending and revenue options in the last two weeks, readers concurred with the viewpoint expressed a year and a half ago by of the governor's Economic Recovery Task Force: If you want to stop the government's financial free-fall into bankruptcy, you've got to do two things: First, reduce spending. Second, increase revenues by stimulating economic growth.
The first poll asked what single most effective action the V.I. government could take to reduce its deficit. Source readers overwhelmingly rejected federal bailouts, favoring instead a reduction in the government payroll (40 percent) and a crackdown on public corruption (38 percent). In distant third place (13 percent) was locating all government offices into public facilities. Selling unused government land drew only 1 percent of the votes, but got significantly higher support on St. Croix than on St. Thomas and St. John.
The second poll was to determine what Source readers considered the single most effective action the government could take to increase its tax revenues. The responses made it clear that the vast majority of readers do not see new taxes or increased taxes of any kind as a solution. Far out in front was doing a better job of collecting existing taxes (47 percent), followed by attracting new businesses (31 percent). Third-ranked was attracting more overnight visitors (11 percent). Among the new or increased tax options presented, the one that drew the most — although not many — votes (5 percent) was instituting a general local sales tax.
The poll results for the week beginning May 4 (545 votes cast):
Question: Which of the following would be the single most effective action the V.I. government could take to reduce its deficit?
1. Get the federal government to forgive all hurricane relief-related debts.
STT (12), STX (9), STJ (0) Total 21 = 4 percent
2. Get the federal government to make a one-time grant to eliminate all current indebtedness.
STT (14), STX (8), STJ (0) Total 22 = 4 percent
3. Reduce the number of government employees to a level where revenues are adequate to meet payroll.
STT (127), STX (74), STJ (12) Total 213 = 40 percent
4. Float more bonds to pay off all retroactively owed wages.
STT (2), STX (1), STJ (0) Total 3 = 0 percent
5. Sell unused government land.
STT (2), STX (5), STJ (0) Total 7 = 1 percent
6. Locate all government offices into government-owned buildings, ending rent payments.
STT (55), STX (17), STJ (0) Total 72 = 13 percent
7. Fight public corruption with aggressive investigation and prosecution.
STT (125), STX (71), STJ (11) Total 207 = 38 percent
The poll results for the week beginning May 11 (347 votes cast):
Question: Which of the following would be the single most effective action the V.I. government could take to increase its tax revenues?
1. Collect existing taxes aggressively and effectively.
STT (104), STX (52), STJ (7) Total 163 = 47 percent
2. Increase business taxes (gross receipts, corporate income, hotel room occupancy, customs and duty).
STT (1), STX (1), STJ (0) Total 2 = 1 percent
3. Increase user taxes (road tax, utilities, fuel, tobacco and alcohol).
STT (2), STX (0), STJ (0) Total 2 = 1 percent
4. Institute a local income tax.
STT (6), STX (6), STJ (0) Total 12 = 4 percent
5. Institute a local sales tax on most goods.
STT (10), STX (6), STJ (0) Total 16 = 5 percent
6. Institute a local sales tax on duty-free luxury goods.
STT (2), STX (5), STJ (0) Total 7 = 2 percent
7. Initiate aggressive efforts to attract more overnight tourists.
STT (17), STX (21), STJ (1) Total 39 = 11 percent
8. Initiate aggressive efforts to attract new businesses.
STT (52), STX (47), STJ (7) Total 106 = 31 percent
This is not intended to be a scientific poll. But we feel that, as a rough gauge of how Source readers feel about issues confronting the territory, the results are interesting and worth considering. And we hope that you will consider voting in this week's poll and those to come.
