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<blockquote type="cite" cite>Visionaires:</blockquote>
<div><br>
<br>
</div>
<div> Mr. Solomon's statement that Idaho's drop in ranking was
accelerated by the</div>
<div> Legislature's tax cut in 2001 and that it negatively
impacted the level of services to our citizens is correct. Mr.
Solomon has the great fortune of</div>
<div> looking at the situation through hindsight.</div>
<div><br></div>
<div> In 2001 we were at the height of an economic boom.
The state had a $300</div>
<div> million surplus and we significantly increased funding for
faculty and staff</div>
<div> salaries and programs at the University of Idaho.
Both Democrats and</div>
<div> Republicans supported the income tax cut in a strong
bi-partisan mode.</div>
<div> It is interesting to note that 16 of 17 Democrats supported
the income</div>
<div> tax cut.</div>
<div><br></div>
<div> HB 87-the tax cut of corporate rates received the support
of a number of</div>
<div> Democrats including Minority Leader Wendy Jaquest.
Unfortunately, neither</div>
<div> Democratic nor Republican legislators could anticipate the
dramatic</div>
<div> economic collapse to come.</div>
<div><br></div>
<div> As thye economy plunged into recession, it became
abundantly clear that the</div>
<div> tax cut policy was wrong. Rep. Shirley Ringo and I
took petitions with</div>
<div> 1,500 signatures from Latah County residents to Governor
Kempthorne</div>
<div> urging him to provide the leadership to work with the
legislature to</div>
<div> rescind the tax cuts. It is an epic case study in not
learning from history.</div>
<div> Today hindsight makes it abundantly clear that the wrong
decisions were made,</div>
<div> but that neither Republican and Democrat foresaw what was
to occur. The end Using our 20/20 hindsight
and</div>
<div> knowing that the economy crashed after the tax cut was
approved, the</div>
<div> results of the bipartisan cut have not been as intended.
Strategies</div>
<div> need to be developed to overhaul our tax system and policy
so that we</div>
<div> can adequately fund state programs and pay our state
employees competitive</div>
<div> salaries and benefits.</div>
<div><br></div>
<div> Rep. Tom Trail</div>
<div><br></div>
<blockquote type="cite" cite><font size="+1"
color="#000000">Visionaries,</font></blockquote>
<blockquote type="cite" cite><font size="+1" color="#000000">The
national trend cited in the following article from today's NY Times is
mirrored in Idaho where the State Tax Commission annual tax burden
report finds that Idaho corporations pay 29% less than the national
average of corporations in other states. This race to the bottom was
accelerated by the Idaho Legislature's tax cut of 2001 to the
detriment of government services and state
employees.</font></blockquote>
<blockquote type="cite" cite><font size="+1"
color="#000000"><br></font></blockquote>
<blockquote type="cite" cite><font size="+1" color="#000000">Mark
Solomon</font></blockquote>
<blockquote type="cite" cite><font size="+3"
color="#000000"><b><br></b></font></blockquote>
<blockquote type="cite" cite><font size="+3"
color="#000000"><b><br></b></font></blockquote>
<div>-- <br>
Dr. Tom Trail<br>
International Trails<br>
1375 Mt. View Rd.<br>
Moscow, Id. 83843<br>
Tel: (208) 882-6077<br>
Fax: (208) 882-0896<br>
e mail ttrail@moscow.com</div>
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