[Vision2020] Regressive Taxes and pre-Legislative update from Rep.Trail

Fri Jan 6 04:39:19 PST 2006

Representative Trail,

 Thank you for  posting an update on the issues facing the state legislature this  coming session. I commend you, Shirley Ringo, and Gary Schroeder for  your dedication to the people in this community. No doubt your efforts  have brought huge dividends to Moscow and Latah County.

  However, I do have some concerns regarding the taxation issues. I am  opposed to the notion of ANY regressive taxation system. In particular,  the taxing of groceries, clothing,  and other needed items by the  poorer members of our community through a new sales tax. Taxing the  poor 10--20% more for their food, in my viewpoint, it the most  unethical means of obtaining funding for raising the salaries of  government employees. I am not stating that funding is not needed for  government employees, I am just loudly voicing my objections to means  of exploiting and implementing an undue and unfair burden on society's  weakest and most vulnerable in order to achieve this goal simply  because it is the most politically expedient avenue. 

 My  suggestion for a fair tax is a progressive tax, like income tax, or a  flat tax on services and luxury items.  There is no reason why  beauty salon services are not taxed but food and OTC drugs remain  heavily taxed.  

 Taxes require a cost to be paid by  someone. The poorer members of our society cannot endure any more  financial burdens. Moscow is already one of the most expensive places  to live and own property in Idaho. I urge you take the ethical route by  not supporting any regressive taxes that soak the poor.

  Education is no doubt important. But it is not more important than food  and  clothing which you will be taking away with a regressive or  sales tax. 

  Thank you,

  Donovan J Arnold

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Sent: Thursday, January 05, 2006 9:02 PM
Subject: [Vision2020] pre-Legislative update from Rep. Trail

Visionaries:

The Idaho Legislature will convene on Monday (January 9th).  The Governor
will give us State of the State address that evening.  He will probably
talk about his plans to reform Medicaid, prison overcrowding, the $200
million surplus, and, hopefully, about tax restructuring.

The $200 million plus surplus will be the subject of great debate. The
Governor has indicated he will not approve any of the monies going to
fund on-going projects and activities.  Part of the surplus will, no
doubt, be held back in reserve as part of the budget stabilization
process.

Property tax relief will be high on the priority list.  The Legislative
Interim Committee has proposed a $125 million package for property tax
relief.  Property tax relief can only be achieved by cutting expenses or
shifting taxes, and it appears that the most likely shift will be to the
sales tax.  There is the possibility of one or two citizen initiatives
for property tax relief.  This puts added pressure on the Legislature to
come up with a relief package.

Funding for education will be vital for District 6  --  both public and
for the University of Idaho.  The Idaho Education Association is pushing
an initiative which would call for an increase of one percent in the
sales tax to be dedicated to educational programs and teachers salaries.
The Idaho Supreme Court ruled in favor of the school districts and told
the Legislature to fix the problem.  One expert reports that we need
about $35 million per year in bond match and $25 million per year toward
maintenance and repair of public school buildings.  Both of these forces
will make the session very challenging.

Legislatition that I will be working on:

  1.  OMNIBUS TAX BILL  --  This proposal would eliminate 10 exemptions
and generate $60 million for the General Fund.  Services would be taxed
at the 5% sales tax rate (except medical and health). Total sales tax
would generate an amount equal to the 6% sales tax rate and yield a
surplus of about $250 million.  This could be utilized to provide
property tax relief, provide additional money for teachers salaries and
educational activities, and help fund school facilities needs.  Another
alternative is to reduce the sales tax on groceries.

  2.  Option Sales Tax -- Rep. Ringo and I were approached by the County
Commissioners, former Mayor Comstock, Sheriff Rausch, and Moscow Chief of
Police, Dan Weaver.  We will be introducing legislation that would allow
the citizens of Latah County to vote on a 1/2 cent option tax to build a
combined law enforcement center for the Sheriff's Office and the Moscow
City Police.  There would be considerable savings with a combined
facility.  The Legislature has to vote to grant the citizens of Latah
County to right to proceed with a vote to approve or reject the
proposal.  Two thirds vote is required for passage.   One positive
outcome if passed is that Latah County citizens would get about one
million in property tax relief a year.  Both Kootenai and Nezperce county
have been granted approval, and citizens approved proposals to build law
enforcement facilities.  A needs assessment is now being conducted.

  3.  Minimum Wage -- I will be introducing legislation to increase
Idaho's minimum wage to $6.15/hr with a CPI to go into effect each
Janaury 1st.  I understand that the Democrats have similar legislation.
The federal government has not increased the minimum wage of $5.15 for
eight years.  Seventeen states have increased the minimum wage since 1997.

  4.  Updating of Idaho's Animal Cruelty Laws  --  part of the
legislation will be to request a felony penalty for dog fighting.  A
total of 48 states already have a felony penalty on the books for dog
fighting.  I'm working with the Idaho Humane Society with this
legislation.  We also plan to introduce legislation next year that would
request the felony penalty on gamecock fighting.

  5.  State Employee Compensation  --  I will be joining other
legislators in signing on to a resolution to increase state employee
compensation by 5%.  During the past several years there has been
virtually no increase at all.

  6.  Grass Burning Notification  --  this legislation has been requested
by Sheriff Wayne Rausch.  It would require the Department of Agriculture
to inform law enforcement/emergency services of the date, location, and
the time of a planned burn.  This is a public health issue.

  7.  Energy Assistance to Families at the Poverty Level  --  Avista has
indicated they want to provide significant assistance to the 12,000
families in N. Idaho who are at or below the poverty level in terms of
energy assistance.  By Idaho law one cannot discriminate between classes
or rate payers.  The code needs to be changed.  The statutory change
would not be mandatory but voluntary for the energy provider in question.

    I have several other bills in progress.  In addition I will be
supporting added financial support for the University of Idaho including
staff salaries, faculty equity, and maintenance and operation.

    I'd appreciate your input, comments, and recommendations regarding
legislation.

My contact information follows below:

Idaho State Legislature
State Capitol Bldg
P.O. Box 83720
Boise, ID 83720-0038

208-332-1260 (my desk phone)
208-332-1000 (information desk phone)

ttrail at moscow.com or ttrail at house.idaho.gov

Repectfully,

Rep. Tom Trail

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_____________________________________________________
 List services made available by First Step Internet, 
 serving the communities of the Palouse since 1994.   
               http://www.fsr.net                       
          mailto:Vision2020 at moscow.com
¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯

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