[Vision2020] Rep. Ringo is on the Right Path

[Tom Hansen]

Courtesy of today's (February 2, 2011) Moscow-Pullman Daily News.

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OUR VIEW: Imagination not needed to see Ringo is on right path

Rep. Shirley Ringo, D-Moscow, says she's always trying to stretch people's
imagination, and lately her effort has been directed at solving Idaho's
revenue shortfall.

Her suggestion - a bill that would eliminate several major sales tax
exemptions, reduce the overall sales tax rate and raise an estimated $374
million in revenue.

Good to see a politician is looking at something rather than short-sighted
cuts - with long-ranging consequences - to education and Medicaid funding.

The bill, which is co-sponsored by Rep. Tom Trail, R-Moscow, proposes
eliminating the sales tax exemption for a variety of goods, including
broadcast equipment, commercial aircraft, railroad rolling stock, driver's
education vehicles, ski lifts and snow-grooming equipment, heating
materials, utility sales, precious metal, telecommunications equipment and
vehicle trade-in value, outfitter and guide sales and vehicles sold to
family members.

The bill also applies the sales tax to certain services currently exempt,
including professional, personal and business services, construction,
transportation, repairs, lottery tickets and media measurement services.

That would generate about $574 million in new revenue for the state,
allowing for the reduction of the overall sales tax rate for all goods and
services from 6 percent to 5 percent, at a cost of about $200 million.

Sounds like a great idea - or, at the minimum, something that needs to be
seriously looked at - but the bill is likely to get buried where it sits
in the House Revenue and Taxation Committee without even a public hearing.

"In my opinion, we're getting into ground we shouldn't tread on in terms
of cuts to education and other critical state services," Ringo said. "My
hope is that by providing information about the (cost) of each of these
exemptions, someone might see one or two that they can embrace."

Considering last week's bad news that the gap in fiscal year 2012 may
reach $185 million, almost five times the amount Gov. C.L. "Butch" Otter
predicted only one month ago, surely legislators can find one or two
exemptions they can eliminate - because it doesn't take too much
imagination to see education and Medicaid can't sustain many more cuts.

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Seeya round town, Moscow.

Tom Hansen
Moscow, Idaho

"The Pessimist complains about the wind, the Optimist expects it to change
and the Realist adjusts his sails."

- Unknown