[Vision2020] Ringo's legislative report

[Bill London]

S-
Thanks for sharing your ideas with V2020.
I fully support your ideas for creating a more sensible and fair tax structure here in Idaho (especially eliminating the sales tax on food, and cutting the sales tax exemptions).
BL
  ----- Original Message ----- 
  From: Shirley Ringo 
  To: vision2020 at moscow.com 
  Sent: Monday, January 21, 2008 6:21 AM
  Subject: [Vision2020] Ringo's legislative report


   

  This week in the Legislature

  Representative Shirley Ringo

  January 18, 2008

   

  A major disappointing development out of the Revenue and Taxation committee this week involves their refusal to consider legislation regarding the Streamlined Sales Tax.  This is a multi-state effort to apply state sales tax to internet sales.  Passage of this legislation would not commit us to specific action, but would give us a seat at the table for discussion.

   

  As a result, we will continue the unfair practice of requiring Main Street business to apply the 6% sales tax, while their competitors who sell over the internet are not required to do so.  Supposedly, we are to pay the state a "use tax" of 6% when we are not charged a sales tax.  This is rarely, if ever, done.

   

  Thus, out of state internet vendors get a 6% discount; home town vendors get the shaft. 

   

  I would like to discuss two additional issues with regard to taxes.  There are a number of exemptions and exceptions to the sales tax that have been on the books for some time.  Each of them was added for a reason, but they stay on the books without being revisited.  A great deal of revenue is lost through these exemptions.  If some of that revenue were recovered, it would be possible to reduce taxation in other areas and move toward greater fairness in the system.  I have suggested a systematic review of these exemptions - an investigation of which are serving no purpose and should be dropped.  The majority of members on the Revenue and Taxation Committee continue to block such considerations.  They have done so again this year, by refusing to consider the recommendations of a committee studying these issues.

   

  My colleagues and I will bring legislation this session to move towards phasing out the sales tax on food.  We propose a plan to phase out the tax on food at 1% per year.  This represents a substantial loss in tax revenue, so it must be approached with great care.  In the end, we must seek a system of taxation that provides revenue for important needs, but is fair to Idaho citizens. 

   

  As long as we tax people 6% on food, the Governor's plan to target the grocery tax to provide more help to low income folks is intriguing.  Last year, unfortunately, this plan failed to gain support in the Revenue and Taxation Committee.

   

  I have legislation drafted that would develop an Idaho Earned Income Credit at 10% of the federal level.  This is a very successful federal program that provides tax relief to working families.  

   

  I continue to oppose the plan State Superintendent Tom Luna has proposed for compensating teachers.  It is a politically motivated plan that is not sound educationally and is unfair to teachers.   Improvements in our method of compensating teachers and administrators should definitely be investigated, but we need to work together to develop a better approach.  

   

  If you have questions or suggestions, you may reach me at 208-301-2272, ringoshirl at moscow.com, or sringo at house.idaho.gov.

   

  Shirley Ringo

   

   

   

   

   

   

   



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