Fwd: [Vision2020] corporate tax revenues fall

[Tom Trail]

>Visionaires:


  Mr. Solomon's statement that Idaho's drop in ranking was accelerated by the
  Legislature's tax cut in 2001 and that it negatively impacted the 
level of services to our citizens is correct.  Mr. Solomon has the 
great fortune of
  looking at the situation through hindsight.

  In 2001 we were at the height of an economic boom.  The state had a $300
  million surplus and we significantly increased funding for faculty and staff
  salaries and programs at the University of Idaho.  Both Democrats and
  Republicans supported the income tax cut in a strong bi-partisan mode.
  It is interesting to note that 16 of 17 Democrats supported the income
  tax cut.

  HB 87-the tax cut of corporate rates received the support of a number of
  Democrats including Minority Leader Wendy Jaquest.  Unfortunately, neither
  Democratic nor Republican legislators could anticipate the dramatic
  economic collapse to come.

  As thye economy plunged into recession, it became abundantly clear that the
  tax cut policy was wrong.  Rep. Shirley Ringo and I took petitions with
  1,500 signatures from Latah County residents to Governor Kempthorne
  urging him to provide the leadership to work with the legislature to
  rescind the tax cuts.  It is an epic case study in not learning from history.
  Today hindsight makes it abundantly clear that the wrong decisions were made,
  but that neither Republican and Democrat foresaw what was to occur. 
The end    Using our 20/20 hindsight and
  knowing that the economy crashed after the tax cut was approved, the
  results of the bipartisan cut have not been as intended.  Strategies
  need to be developed to overhaul our tax system and policy so that we
  can adequately fund state programs and pay our state employees competitive
  salaries and benefits.

  Rep. Tom Trail

>Visionaries,
>The national trend cited in the following article from today's NY 
>Times is mirrored in Idaho where the State Tax Commission annual tax 
>burden report finds that Idaho corporations pay 29% less than the 
>national average of corporations in other states. This race to the 
>bottom was accelerated by the Idaho Legislature's tax cut of 2001 to 
>the detriment of government services and state employees.
>
>Mark Solomon
>
>
-- 
Dr. Tom Trail
International Trails
1375 Mt. View Rd.
Moscow, Id. 83843
Tel:  (208) 882-6077
Fax:  (208) 882-0896
e mail ttrail at moscow.com
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