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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>This week in the Legislature</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>Representative Shirley Ringo</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>January 18, 2008</FONT></P>
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>A major disappointing development out of the Revenue and Taxation
committee this week involves their refusal to consider legislation regarding the
Streamlined Sales Tax.<SPAN style="mso-spacerun: yes"> </SPAN>This is a
multi-state effort to apply state sales tax to internet sales.<SPAN
style="mso-spacerun: yes"> </SPAN>Passage of this legislation would not
commit us to specific action, but would give us a seat at the table for
discussion.</FONT></P>
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>As a result, we will continue the unfair practice of requiring
<?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags"
/><st1:Street w:st="on"><st1:address w:st="on">Main
Street</st1:address></st1:Street> business to apply the 6% sales tax, while
their competitors who sell over the internet are not required to do so.<SPAN
style="mso-spacerun: yes"> </SPAN>Supposedly, we are to pay the state a
“use tax” of 6% when we are not charged a sales tax.<SPAN
style="mso-spacerun: yes"> </SPAN>This is rarely, if ever,
done.</FONT></P>
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>Thus, out of state internet vendors get a 6% discount; home town vendors
get the shaft. </FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>I would like to discuss two additional issues with regard to taxes.<SPAN
style="mso-spacerun: yes"> </SPAN>There are a number of exemptions and
exceptions to the sales tax that have been on the books for some time.<SPAN
style="mso-spacerun: yes"> </SPAN>Each of them was added for a reason, but
they stay on the books without being revisited.<SPAN
style="mso-spacerun: yes"> </SPAN>A great deal of revenue is lost through
these exemptions.<SPAN style="mso-spacerun: yes"> </SPAN>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.<SPAN
style="mso-spacerun: yes"> </SPAN>I have suggested a systematic review of
these exemptions – an investigation of which are serving no purpose and should
be dropped.<SPAN style="mso-spacerun: yes"> </SPAN>The majority of members
on the Revenue and Taxation Committee continue to block such
considerations.<SPAN style="mso-spacerun: yes"> </SPAN>They have done so
again this year, by refusing to consider the recommendations of a committee
studying these issues.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>My colleagues and I will bring legislation this session to move towards
phasing out the sales tax on food.<SPAN style="mso-spacerun: yes">
</SPAN>We propose a plan to phase out the tax on food at 1% per year.<SPAN
style="mso-spacerun: yes"> </SPAN>This represents a substantial loss in
tax revenue, so it must be approached with great care.<SPAN
style="mso-spacerun: yes"> </SPAN>In the end, we must seek a system of
taxation that provides revenue for important needs, but is fair to <st1:place
w:st="on"><st1:State w:st="on">Idaho</st1:State></st1:place> citizens.
</FONT></P>
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>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.<SPAN
style="mso-spacerun: yes"> </SPAN>Last year, unfortunately, this plan
failed to gain support in the Revenue and Taxation Committee.</FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
face="Times New Roman">I have legislation drafted that would develop an Idaho
Earned Income Credit at 10% of the federal level.<SPAN
style="mso-spacerun: yes"> </SPAN>This is a very successful federal
program that provides tax relief to working families.<SPAN
style="mso-spacerun: yes"> </SPAN></FONT></FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT size=3><FONT
face="Times New Roman">I continue to oppose the plan State Superintendent Tom
Luna has proposed for compensating teachers.<SPAN
style="mso-spacerun: yes"> </SPAN>It is a politically motivated plan that
is not sound educationally and is unfair to teachers.<SPAN
style="mso-spacerun: yes"> </SPAN>Improvements in our method of
compensating teachers and administrators should definitely be investigated, but
we need to work together to develop a better approach. <SPAN
style="mso-spacerun: yes"> </SPAN></FONT></FONT></P>
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size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>If you have questions or suggestions, you may reach me at 208-301-2272,
</FONT><A href="mailto:ringoshirl@moscow.com"><FONT face="Times New Roman"
size=3>ringoshirl@moscow.com</FONT></A><FONT face="Times New Roman" size=3>, or
</FONT><A href="mailto:sringo@house.idaho.gov"><FONT face="Times New Roman"
size=3>sringo@house.idaho.gov</FONT></A><FONT face="Times New Roman"
size=3>.</FONT></P>
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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>Shirley Ringo</FONT></P>
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size=3> </FONT></o:p></P>
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