Even if taxes are completely passed on to the consumer (like sales taxes), the "producer" still bears some of the burden of the tax. Here is an explanation that's as good as any other: https://en.wikipedia.org/wiki/Tax_incidence
Every individual actor needs to decide for themselves if they are for or against something... my sense is that hotels are all for this as whatever tax burden they bear is an investment in the future. Project Marvel/a more vibrant downtown/etc. are all good for their business. I don't have an opinion of whether hotels or rental car companies should be for or against it, I'm just correcting the notion that the burden of the tax falls squarely on tourists.
I think it will all be water under the bridge between the Spurs and the city once a deal is struck... the only real long term damage is likely between the mayor and the rest of council. The lack of cohesion doesn't surprise me at all, as it strikes me that San Antonio (and most public governing bodies) have been going increasingly in the direction of amateur hour with clowns running the circus (just look at the White House as an illustration).I do think there may be some harm in how the mayor is handling the negotiations - which I say from the perspective of the complete lack of alignment between her and city council. She obviously has a job for her cons uents, and any incremental gain from the Spurs is a win - but this isn't a one-time deal. The City and SSE need each other going forward - so if she is burning goodwill because the City should have, but didn't, get its own EIA study months ago, they may very well not be a good thing. This is a relatively minor point admittedly, but the lack of cohesion between her and council members is .... weird.

Reply With Quote
