[Vision2020] Legislative Update III from Rep. Trail Jan 14-19

[Paul Rumelhart]

It also takes away the burden of having to pay the tax
and then be reimbursed for it up to a year later. 
That's not easy to do if you qualify for the credit.

Paul

--- Bill London <london at moscow.com> wrote:

> Tom-
> Again, thanks for writing to V2020 with these
> issues.
> Regarding the grocery tax credit issue, it seems to
> me that the easiest 
> remedy and the fairest would be to eliminate sales
> tax on all groceries. 
> Other states use that remedy.  That simplifies the
> solution.
> BL
> 
> 
> 
> 
> 
> 
> ----- Original Message ----- 
> From: <ttrail at moscow.com>
> To: <vision2020 at moscow.com>
> Sent: Saturday, January 19, 2008 3:24 PM
> Subject: [Vision2020] Legislative Update III from
> Rep. Trail Jan 14-19
> 
> 
> > LEGISLATIVE NEWSLETTER III --JANUARY 14-19,2008
> >
> > Constituents:
> >
> > I'd like to talk a bit about a single issue in
> this newsletter.   This
> > issue is the Grocery Tax Credit.   A number of
> proposals surfaced last 
> > year
> > in the Legislature.  The majority of Legislators
> appeared to support some
> > approach to reducing the sales tax on groceries
> but all of the measures
> > failed.   There appears to be renewed efforts to
> pass legislation this
> > session to phase out the sales tax on groceries.
> >
> > Idaho's current Grocery Tax Credit provides a
> uniform credit of $20 per
> > person for eligible non-elderly individuals, which
> represents the tax
> > burden on $333 of food for one year.  Raising the
> credit amount to $90 per
> > non-elderly family member and making it available
> to lower income
> > households, would come close to offsetting the
> impact of the grocery tax 
> > on
> > low income families.   This projected cost would
> be about $29 
> > million/year.
> > This was close to the Governor's proposal last
> session.
> >
> > Unfortunately, some of the lowest income Idahoans
> do not benefit from the
> > current grocery tax credit.   Idaho residents who
> are not elderly and not
> > legally required to file a tax return are not
> eligible for the Grocery Tax
> > Credit, even if they file a return.  For a married
> coup0le in 2007, the
> > income at which they would be required to file is
> $17,500; those whose 
> > income
> > fell under this level would not qualify.
> >
> > The vast majority of families on food stamps do
> pay the sales tax on
> > groceries, but a family who purchases food with
> its own income is not
> > eligible if it receives any food stamp benefit. 
> At least 70% of Idaho 
> > food
> > stamp recipeint, as well as many of the remaining
> 30%, need to supplement
> > their food stamps with cash purchases of food to
> have a basic nutritious
> > diet; these purchases are subject to the sales
> tax.   I will be supporting
> > legislation that allows all low income Idahoans to
> claim their Grocery Tax
> > Credit.   There will be much more' debate on this
> issue coming up in the
> > following weeks.
> >
> > It appears that we may be headed into an economic
> downturn or even a mild
> > recession. I think this is a good time to remind
> all of some of the
> > realities of poverty in the eleven Northern Idaho
> Counties (data source,
> > U.S. Census, Idaho Kids County Report, and the
> 2006 Idaho Job Gap Report).
> >
> >  1.  41,136 people live in poverty
> >  2.  19 out of every 100 children live in poverty
> >  3.  Idaho has the highest percentage (29%) of
> young adults, ages 18-24,
> > living in poverty of any state in the U.S.
> >  4.  63% of Idaho 3 and 4 year olds do not attend
> a preschool program due
> > to the lack of availability and affordability,
> leaving them unprepared to
> > enter kindergarten.
> >  5.  Low-income parents make kup almost half of
> Idaho's working
> > population.  The parents in these families work
> for low wages, often
> > without the ability to afford health insurance,
> quality child care and
> > early education.
> >  6.  In Idaho, a living wage for a family of 3
> (single parent/two
> > children) is $22.23/hour.  Only 14% of current
> jobs in Idaho pay this 
> > wage.
> > A living wage for a family of 4 (2 parents/2
> children-1 parent working is
> > $20.98 per hour (due to the Earned Income Credit
> Program, the living wage
> > for a family of four is slightly less than that of
> the family of 3).  Only
> > 17% of current jobs in Idaho pay this wage.
> >
> > There are also some interesting relationships
> regarding poverty in Idaho.
> > These are:
> >
> >  1.  Drug arrests are up 144% since 1990.
> >  2.  The suicide rate is 22 people per 100,000,
> compared to the national
> > suicide rate of 11 people per 100,000.
> >  3.  By 2025, 20% of Idaho's population will be
> over age 65 and Idaho will
> > have the greatest number of people over age 85 per
> capita than any other 
> > state.
> >  4.  Many of Idaho's elders face isolation due to
> lack of mobility,
> > relationships and adequate resources.
> >
> > Many state and private agencies are working with
> Idaho citizens in poverty
> > to assist them to meet of challenges of day to day
> survival.   A number of
> > legislative initiatives including the Grocery Tax
> Credit are being 
> > proposed.
> >
> > That is all for this week.   Please send me your
> comments, 
> > recommendations,
> > etc. to
> > ttrail at house.idaho.gov to my office in Boise.   My
> phone is 208-332-1184
> >
> > Representative
> > Tom Trail
> >
> >
> > ---------------------------------------------
> > This message was sent by First Step Internet.
> >           http://www.fsr.com/
> >
> >
> >
>
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> >          mailto:Vision2020 at moscow.com
> >
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