KEN KREFFT
The U.S. Census Bureau reports that Shreveport’s annual median household income was $38,279 from 2014-2018.
Of course, this is a gross yearly figure and is subject to various deductions for federal and state income taxes, Social Security, Medicare, unemployment, workers’ comp, health insurance and other withholdings. Studies indicate the average household spends two of three discretionary dollars at retail.
Let’s enter the fantasy world of Oz. In Oz there are no deductions from workers’ pay. In Oz workers spend their entire gross monthly earnings of $3,189.92, 1/12 the annual number, at establishments which are all located within the Shreveport city limits. Oz Shreveporters cannot ever shop at the Bossier Boardwalk or any store outside the city by order of King Ozzie.
Now multiply the entire $38, 279/year any worker earns by the 2.75% sales tax. In Oz SBAP/food stamps are not allowed, so families pay the 2.75% on food for home consumption. A little math reveals a yearly city sales tax tab per household of $1.052.67. Multiply by about 73,111 households, giving $76,961,756.37 or $124,722, 991 in 2019 city sales tax revenue. So, only in Oz, Shreveporters contribute 61.7% of the total city sales taxes collected.
OK. We are going to leave Oz, coming back to Shreveport. Payroll deductions can run 30% or more, so we’ll stay with just 30%. Take three pennies from every dime earned, leaving $26,795.30 in take-home pay. Take a third of that because Americans spend about two-thirds of take-home pay.
Now, it’s not all subject to sales taxes since we have doctors’ bills and many other expenses for which sales taxes are not levied. Just for argument’s sake, we’ll say $17,863.54 is hos much the average household spends at retail each year. 2.75% of this figure gives an average annual city sales tax tab of $491.25. Multiply this by 73,111 households and get $35,915,589.56.
Shreveporters contribute only 28.8% of city sales taxes generated annually. It is clearly the best permanent new source of revenue for a public safety pay hike.
THIS ARTICLE WAS PUBLISHED IN THE October 9 ISSUE OF FOCUS SB - THE INQUISITOR.