Since FY02-2003, the Other Funds category of the budget – basically, statewide fees and fines – has grown by more than $2 billion.

These fees and fines are a burden on individuals and businesses – draining the economy and stifling entrepreneurship.

But this trend is not limited to state government alone. South Carolina localities took in more than $13 billion in revenue in 2008 – up from $9.5 billion in 2003. Of that, $539 million was from licenses and permits – a 52 percent increase since FY02-2003.

One reason fee and fine revenue keeps going up is because most taxpayers think of such hidden taxes as applying to other people. Homebuyers don’t see that building permits increase the price of housing. Consumers don’t get that business fees drive up the cost of everything they buy. Taxpayers generally don’t realize that such fees and fines increase the cost of everything they do, whether it’s getting married, having a baby, or drafting a will.

It might seem that most fees and fines serve a public purpose. But with local governments desperate to keep raising revenue, that premise is up for question. Consider this example from The Nerve citizen reporter Erich Chatham highlighting how a simple home improvement project made him an easy target for municipal regulators. A recap of the story:

 

  • ·         A homeowner asks two friends to help repair a leaky roof – small project, just a favor.
  • ·         According to the city of Orangeburg building inspector, the following local fees must be paid for friends to repair the roof:
  • o   City business license (which only applies to the current “project”)
  • o   City building permit
  • ·         Total cost to the homeowner: $100 check on the spot to inspector for the business license. $30 for the building permit (plus the 90-minute drive each way for the homeowner).

Wonders Chatham, “Is this any different from a mob boss knocking down the door and requiring that I pay him for ‘protection?’ I think not. Sounds like extortion to me.”

 

The background to rising fee and fine revenue is a steady increase in the size of South Carolina local governments. According to the Employment Security Commission (and verified by State Economist William Gillespie), local government employment grew from 212,000 to 219,000 between 2008 and 2009. A 3.6 percent increase in the literal size of local governments – during a year when construction and professional/business services jobs fell by 13.5 and 6.4 percent respectively.  

The only other industry – out of 22 total categories – that showed growth in 2009 was leisure and hospitality, with an increase of 2.6 percent. In other words, local governments are growing faster than the state’s most important economic driver.

 

As economist Arthur Laffer has repeatedly shown, public sector employment growth is a job killer for the private sector. The more local governments grow, the more the private businesses will fail to grow, or even, shrink.

The solution? Lower taxes and reduce regulatory burdens for all businesses, large and small – ideas elaborated upon in Unleashing Capitalism.

 Click Here to Read the PDF

Nothing in the foregoing should be construed as an attempt to aid or hinder passage of any legislation.

By South Carolina Policy Council

Since 1986 the South Carolina Policy Council Education Foundation has advocated innovative policy ideas that advance the principles of limited government and free enterprise. The Policy Council is the state’s meeting place for business leaders, policymakers, and academics – as well as engaged citizens – who want to see South Carolina become the most free state in the nation. For questions or comments on the articles on this website, please email Research Director Jamie Murguia.

126 thoughts on “Even in Recession Local Governments Keep Growing”
  1. ¡Saludos, buscadores de éxitos!
    casinos extranjeros con criptomonedas aceptadas – п»їhttps://casinosextranjero.es/ casinos extranjeros
    ¡Que vivas increíbles giros exitosos !

  2. ¡Bienvenidos, fanáticos del azar !
    Casino online fuera de EspaГ±a sin procesos largos – п»їhttps://casinoporfuera.guru/ casinos online fuera de espaГ±a
    ¡Que disfrutes de maravillosas movidas brillantes !

  3. ¡Saludos, participantes del entretenimiento !
    casinos fuera de EspaГ±a para apuestas deportivas – п»їhttps://casinosonlinefueraespanol.xyz/ casinosonlinefueraespanol
    ¡Que disfrutes de conquistas destacadas !

  4. ¡Hola, aventureros del riesgo !
    Juegos rГЎpidos en casinos online extranjeros – п»їhttps://casinosextranjerosdeespana.es/ mejores casinos online extranjeros
    ¡Que vivas increíbles victorias memorables !

  5. ¡Hola, aventureros de sensaciones !
    Casino sin licencia en EspaГ±ola sin lГ­mite de saldo – п»їhttps://casinosinlicenciaespana.xyz/ casinos sin registro
    ¡Que vivas increíbles jackpots impresionantes!

  6. Hello ambassadors of well-being !
    Getting the best air purifier for smoke means better protection during wildfire season. These machines filter particles as small as 0.3 microns. You’ll notice cleaner air fast with the best air purifier for smoke in place.
    Best air purifier for smoke large rooms models usually have high airflow capacity. They refresh air in minutes, even in big areas. air purifier for smoke Their sleek design fits modern interiors.
    Best smoke eater for home with silent fan – п»їhttps://www.youtube.com/watch?v=fJrxQEd44JM
    May you delight in extraordinary spotless air !

  7. ¡Un cordial saludo a todos los clientes del casino !
    Los euro casino online ofrecen una experiencia de juego segura y variada. Muchos jugadores prefieren europa casino por sus bonos atractivos y soporte en varios idiomas. casinos online europeos Un mejores casinos en linea garantiza retiros rГЎpidos y mГ©todos de pago confiables.
    Los casino europa ofrecen una experiencia de juego segura y variada. Muchos jugadores prefieren casinos europeos por sus bonos atractivos y soporte en varios idiomas. Un mejores casinos garantiza retiros rГЎpidos y mГ©todos de pago confiables.
    Casinos europeos online con soporte en vivo y pagos seguros – п»їhttps://casinosonlineeuropeos.xyz/
    ¡Que goces de increíbles ganancias !

  8. Saludo cordialmente a todos los companeros de ruleta !
    Las casas de apuestas extranjeras ofrecen a los jugadores espaГ±oles mГЎs libertad que las reguladas. casas de apuestas extranjeras Muchos usuarios eligen casas de apuestas extranjeras porque permiten mejores cuotas y mГЎs promociones. AdemГЎs, registrarse en casas de apuestas extranjeras suele ser rГЎpido y sencillo.
    Las casas de apuestas extranjeras que aceptan espaГ±oles ofrecen a los jugadores espaГ±oles mГЎs libertad que las reguladas. Muchos usuarios eligen casas de apuestas extranjeras que aceptan espaГ±oles porque permiten mejores cuotas y mГЎs promociones. AdemГЎs, registrarse en casas de apuestas extranjeras que aceptan espaГ±oles suele ser rГЎpido y sencillo.
    Mejores opciones de casas apuestas sin licencia para jugadores experto – п»їhttps://casasdeapuestasextranjeras.xyz/
    Ojala disfrutes de increibles recompensas !
    casas de apuestas que no limitan espaГ±a

  9. Warm greetings to all the roulette companions !
    Advanced technology ensures that live casino is always accessible. live casino is becoming more popular both in Greece and worldwide The interaction with other players makes live casino more exciting.
    Players enjoy authentic atmosphere when joining ОєО±О¶О№ОЅОї live. Professional dealers at ОєО±О¶О№ОЅОї live make the experience realistic. Advanced technology ensures that ОєО±О¶О№ОЅОї live is always accessible.
    Join ОєО±О¶О№ОЅОї live for Authentic Casino Thrills – п»їhttps://livecasinogreece.guru/
    I wish you amazing encounters !
    livecasinogreece

  10. ?Saludos cordiales a todos los jugadores de casino !
    Muchos jugadores confГ­an en librabet casino guru porque ofrece opciones seguras y variadas. Con librabet casino guru se puede acceder fГЎcilmente a promociones exclusivas y mГ©todos de pago modernos. librabet casino AdemГЎs, librabet casino guru garantiza una experiencia de usuario fluida en cualquier dispositivo.
    Muchos jugadores confГ­an en librabet promo code porque ofrece opciones seguras y variadas. Con librabet promo code se puede acceder fГЎcilmente a promociones exclusivas y mГ©todos de pago modernos. AdemГЎs, librabet promo code garantiza una experiencia de usuario fluida en cualquier dispositivo.
    GuГ­a completa de librabet bonus para jugadores – п»їhttps://librabetcasino.guru/#
    ?Te deseo increibles giros !
    casino librabet logowanie

  11. ?Warm greetings to all the slot enthusiasts !
    Survey data about crypto-enabled gaming platforms provides insight into user motivations. betting without identificationInterpreting such data requires careful, neutral methodology. Researchers publish findings to support evidence-based policy.
    anonymous wagering research often raise questions for policymakers about data handling. Scholars compare them to regulated platforms to assess risks. The goal is to inform safer practices and clearer regulations.
    ПѓП„ОїО№П‡О·ОјО± П‡П‰ПЃО№Пѓ П„О±П…П„ОїПЂОїО№О·ПѓО·: legal issues and warnings – п»їhttps://bettingwithoutidentification.xyz/#
    ?I wish you incredible jackpots!
    bettingwithoutidentification

Leave a Reply

Your email address will not be published. Required fields are marked *