[Vision2020] Legislative update VI from Rep. Trail

[Tom Hansen]

Rep. Trail -

I seriously appreciate your legislative updates.  Although some legislative
sessions continue to be conducted behind closed doors, it is refreshing to
know that Rep. Trail lets us peak in once in a while.  Thanks.

In my opinion, item #2 (Grocery Tax Credit) does not truly benefit those
citizens who must apply the largest percentage of their annual income in
keeping food on their tables.  I am talking about those Idaho families whose
annual income does not qualify them for a tax bracket.  If a family is
earning below the poverty level, they are not required to pay taxes.  All
the tax credits in the world will not cheapen the cost of keeping food on
the table for these families.

My recommendation would be to maintain a 6-percent sales tax while
eliminating tax on groceries.

As much as it pains me to say it, this is the least we can do, although our
state legislature continues to echo the them, "No.  We can do less."

"If not us, who?
If not now, when?"

- Unknown

-----Original Message-----


From: vision2020-bounces at moscow.com [mailto:vision2020-bounces at moscow.com]
On Behalf Of ttrail at moscow.com
Sent: Saturday, February 10, 2007 1:19 PM
To: vision2020 at moscow.com
Subject: [Vision2020] Legislative update VI from Rep. Trail

LEGISLATIVE NEWSLETTER-FEBRUARY 5-9/2007
 
Dear Constituents:    

Well we are about the halfway point of the legislative session.  The first
batch of pages finished up their five week assignment and a new group of
pages are now currently undergoing their orientation.   It appears that
JFAC will finalize and set budgets by March 9th and the prediction on the
House side is that we will get out of here by March 23rd.  Today we heard a
rumor that the Governor wants to get us out of here by March 15th but there
are two many legislative mine fields to make that date.  Already like a
couple of kids in a sandbox, the House and Senate will be holding certain
bills hostage to use as leverage in the final days of the session.   Here
are some highlights:
 
 1.  K-12 Public School Budget  --  The House Ed Committee unanimously
voted 19-0 to support the Superintendent's public education budget.   This
recommendation will be presented to JFAC by Chairman Nonini.   The basis of
the recommendation was to keep intact a package of enhancements, i.e.
schoolbooks, teacher supplies, remediation, and dual class enrollment.  
The recommendation also included support of a 1% increase in discretionary
funds.  A number of us also expressed support for increasing the percentage
for teacher compensation.
 
 2.  Grocery Tax Credit  --  the House Rev and Tax Committee selected
Representative Bayer's proposal, and it passed on the House floor by a 62-7
margin.   This is in one sense a tax relief package that benefits all
citizens.  It dramatically increases the tax credit on groceries.  HB 81
increases the tax credit from $20 to $50.  For Seniors over 65, the tax
credit would increase from $35 to $75.  This means that most Idahoans will
be paying less than half of the current 6 percent rate on groceries.
Tourists and non-residents would continue to pay the full 6 percent rate.
 
 3.  Minimum Wage  --  The State Affairs Committee voted down a minimum
wage proposal that I co-sponsored that would have raised the minimum wage
to $7.25/hr along with the CPI index to adjust for inflation.   The
alternative form passed which (if Congress passes the national minimum
wage) would mirror proposed national minimum wage legislation currently
before Congress.  This would increase minimum wage to $7.25/hr over a two
year period with the CPI adjustment.    The U.S. Senate also wants to
include some tax credits to help small businesses in making the adjustment.
 
 4.  HCR08  --  My Human Rights Resolution passed on a 59-9 margin, and now
goes on to the Senate.
 
 5.  Taxes  --  Since 1965 the State has granted over 75 exemptions to
various organizations These exemptions total to more than $1.6
billion/year.   These are basically subsidies granted by the State to
business and organizations with the perceived opinion that the subsidy is
of value to the state.   However, it is the taxpayer who really pays the
bill.   There is a concerted effort in the Senate Tax Committee to put a
stop to exemptions this year, and to develop a plan to examine our tax
policy toward exemptions.   I developed a proposal (patterned after
Washington State) that would set up a Citizens Commission working with the
Legislature, Governors, Office, and the Tax Commission to develop
recommendations to the Legislature concerning evaluating each exemption
that has been granted and a system whereby we could evaluate a certain
number of exemptions each year to see if they do indeed provide benefit to
the State.
 
 6.  Personal Property Taxes Paid by Businesses  --  I developed a proposal
that would eliminate personal property taxes to small businesses.   To
qualify a business could not have more than $2,000,000 gross or more than
20 employees.  This would provide tax relief of more than $50 million/yr. 
 It is also of importance to note that small businesses provide more than
80% of the jobs in the State.   Big companies like Micron receive special
tax relief.    I proposed funding this through a 1% sales tax on services
except for utilities, health, and medical.   This would not have impacted
the State General Budget;   however, the Governor has said he will veto any
tax increase this year so I'm holding on to the legislation for next year.
IAIC does have a proposal to eliminate the personal property tax on
business over a 7-8 year period.
 
 7.  Elk Ranching  --  There will be public hearings regarding elk ranching
and hunting on elk ranches in the Senate Ag Committee this coming week.  
There are many hunters who want to completely eliminate all elk ranches and
hunting bulls on elk ranches. There are important animal health and
property rights issues involved in the debate.
      
I'd like to hear your opinions and concerns.  My e mail is
ttrail at house.idaho.gov and my phone number is (208) 332-1000.
 
Representative Tom Trail


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