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<DIV><FONT size=2>I received the note below from Tom Trail. I hope he
doesn't mind that I share it. I think we are in agreement on this
point.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Telling citizens what tax exemptions cost them is part of a
larger issue: <STRONG><FONT color=#ff0000>the public's right to
know</FONT></STRONG>. How can citizens in a representational form of
government correctly decide what to communicate to their representatives or
which representative to support if the are lacking access to critical
information?</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>The cost of tax exemptions is not some super perilous
information upon which the very security of our country/state rests unless it is
kept secret. Their is no legitimate reason to keep this information secret
-- now secret because it is impossible for citizens to find this
information.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>However, how much taxes each of us pay and if taxes are
reasonably fair is a critical issue. And one where knowledge is crucial if
we are to participate meaningfully in government.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Therefore, in my opinion, those who oppose setting up a
mechanism which would allow us to see exactly what all state/federal exemptions
costs individually and in total are as morally unfit to govern as those who
oppose open meetings, open public/judicial records, and any other reasonable
ways of the public accessing information needed so that they may better
govern themselves.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Wayne A. Fox<BR>1009 Karen Lane<BR>PO Box 9421<BR>Moscow,
ID 83843</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=2><A href="mailto:waf@moscow.com">waf@moscow.com</A><BR>208
882-7975</FONT></DIV>
<BLOCKQUOTE
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<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="FONT: 10pt arial; BACKGROUND: #e4e4e4; font-color: black"><B>From:</B>
<A title=ttrail@moscow.com href="mailto:ttrail@moscow.com">Tom Trail</A>
</DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A title=deco@moscow.com
href="mailto:deco@moscow.com">Art Deco</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Wednesday, January 06, 2010 1:41
PM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> Re: [Vision2020] pre-legislative
newsletter from Rep. Tom Trail</DIV>
<DIV><BR></DIV>
<DIV>Wayne it will be like pushing a 100# boulder up a 45% grade but one
must</DIV>
<DIV>do the best one can.</DIV>
<DIV><BR></DIV>
<DIV>Tom</DIV>
<DIV><BR></DIV>
<DIV><BR></DIV>
<BLOCKQUOTE cite="" type="cite"><FONT size=-1>Judy,</FONT></BLOCKQUOTE>
<BLOCKQUOTE cite="" type="cite"> </BLOCKQUOTE>
<BLOCKQUOTE cite="" type="cite"><FONT size=-1>Thank you for your
comment.</FONT></BLOCKQUOTE>
<BLOCKQUOTE cite="" type="cite"> </BLOCKQUOTE>
<BLOCKQUOTE cite="" type="cite"><FONT size=-1>I really support mandatory
analyses and reporting that show what every one of the state tax exemptions
cost in lost revenue. If these numbers were available, I believe that
the public would more vigorously signal their legislators to do something
more balanced.</FONT></BLOCKQUOTE>
<BLOCKQUOTE cite="" type="cite"> </BLOCKQUOTE>
<BLOCKQUOTE cite="" type="cite"><FONT size=-1>As long as politicians rely on
impossible to prove political/social/religious ideology to support their
decisions instead of probabilities of consequences of actions, we will never
have any where near a balanced tax system.</FONT></BLOCKQUOTE>
<BLOCKQUOTE cite="" type="cite"> </BLOCKQUOTE>
<BLOCKQUOTE cite="" type="cite"><FONT size=-1>And as bad as the unbalanced
state tax exemptions are, the federal tax system with its hundreds of
thousands of exemptions is much worse. All of us ordinary citizens are
financing much for which we receive little or nothing in benefit, but
special groups/people reap billions by not having to pay taxes the rest of
us have to make up.</FONT></BLOCKQUOTE>
<BLOCKQUOTE cite="" type="cite"> </BLOCKQUOTE>
<BLOCKQUOTE cite="" type="cite"><FONT size=-1>I suspect that Representative
Trail will have a difficult time persuading his fellow legislators that now
is the time to reveal to the citizens what each and every exemption is
costing them. I believe the reason for this is that many legislators
do not want the public to have this information because it will lead to the
severe mutilation of some very sacred cows.</FONT></BLOCKQUOTE>
<BLOCKQUOTE cite="" type="cite"> </BLOCKQUOTE>
<BLOCKQUOTE cite="" type="cite"><FONT size=-1>Wayne A. Fox<BR>1009 Karen
Lane<BR>PO Box 9421<BR>Moscow, ID 83843</FONT></BLOCKQUOTE>
<BLOCKQUOTE cite="" type="cite"> </BLOCKQUOTE>
<BLOCKQUOTE cite="" type="cite"><A href="mailto:waf@moscow.com"><FONT
size=-1>waf@moscow.com</FONT></A><FONT size=-1><BR>208 882-7975</FONT><BR>
<BLOCKQUOTE>----- Original Message -----</BLOCKQUOTE>
<BLOCKQUOTE><B>From:</B> <A
href="mailto:jlbrown@turbonet.com">JLBrown</A></BLOCKQUOTE>
<BLOCKQUOTE><B>To:</B> <A href="mailto:deco@moscow.com">'Art Deco'</A> ;
<A href="mailto:ttrail@moscow.com">ttrail@moscow.com</A> ; <A
href="mailto:vision2020@moscow.com">'Vision 2020'</A></BLOCKQUOTE>
<BLOCKQUOTE><B>Sent:</B> Wednesday, January 06, 2010 1:37 PM</BLOCKQUOTE>
<BLOCKQUOTE><B>Subject:</B> RE: [Vision2020] pre-legislative newsletter
from Rep. Tom Trail</BLOCKQUOTE>
<BLOCKQUOTE><BR></BLOCKQUOTE>
<BLOCKQUOTE>Wayne and Visionaries,</BLOCKQUOTE>
<BLOCKQUOTE> </BLOCKQUOTE>
<BLOCKQUOTE>I like your idea of a reporting requirement showing how much
property tax exemptions cost local tax districts—and how much they boost
our individual property tax bills. Unfortunately, reducing local
property tax exemptions such as those for charities and other non-profits
is not going to help the state’s fiscal situation. The property tax
is entirely a local tax and none of those revenues goes to the
state.</BLOCKQUOTE>
<BLOCKQUOTE> </BLOCKQUOTE>
<BLOCKQUOTE>Re-examining the 75 exemptions in the state tax code also
makes sense, and should have been done a long time ago. The idea has
been around at least since 2003, with strong opposition from the House
leadership, which is supposed to start tax policy. Furthermore, the
bulk of those exemptions are sales tax exemptions on services, so closing
those exemptions basically means raising the sales taxes that you and I
pay when we have our car serviced or call a plumber—not a great idea
during a recession. The Governor has also emphatically said that
taxing services is not going to happen on his watch.</BLOCKQUOTE>
<BLOCKQUOTE> </BLOCKQUOTE>
<BLOCKQUOTE>Idaho is in a dire situation and could do long-lasting damage
to public and higher education—cuts that could hurt our young people, the
state’s economic future, and this county in particular for a long time to
come. What is needed is a temporary revenue boost, something that
can generate some dollars quickly without burdening those struggling with
un-and under-employment. The best way to do that is through the
income tax, and that is why Rep. Ringo and I have proposed a modest
temporary income tax surcharge for the next two years or so while the
recovery gathers steam.</BLOCKQUOTE>
<BLOCKQUOTE> </BLOCKQUOTE>
<BLOCKQUOTE>I hope the 2010 legislature will take these issues
seriously. We’ll see.</BLOCKQUOTE>
<BLOCKQUOTE> </BLOCKQUOTE>
<BLOCKQUOTE>Judy</BLOCKQUOTE>
<BLOCKQUOTE> </BLOCKQUOTE>
<BLOCKQUOTE><B>From:</B> vision2020-bounces@moscow.com
[mailto:vision2020-bounces@moscow.com]<B> On Behalf Of</B> Art
Deco<BR><B>Sent:</B> Wednesday, January 06, 2010 12:28 PM<BR><B>To:</B>
ttrail@moscow.com; Vision 2020<BR><B>Subject:</B> Re: [Vision2020]
pre-legislative newsletter from Rep. Tom Trail</BLOCKQUOTE>
<BLOCKQUOTE> </BLOCKQUOTE>
<BLOCKQUOTE>Tom,</BLOCKQUOTE>
<BLOCKQUOTE> </BLOCKQUOTE>
<BLOCKQUOTE>Thank you for the outline.</BLOCKQUOTE>
<BLOCKQUOTE> </BLOCKQUOTE>
<BLOCKQUOTE>I especially laud your analysis of tax exemptions. I
think we need to impose assessing/reporting requirements on county tax
assessors so that we can know exactly how much each exemption is reducing
the money otherwise available with respect to property and other taxes
assessed by the county.</BLOCKQUOTE>
<BLOCKQUOTE> </BLOCKQUOTE>
<BLOCKQUOTE>I especially endorse the idea that the cost to taxpayers of
the exemptions to non-profits, many of which are not charities (and some
of the charities are more employment opportunities for fund raisers
than charities) be calculated and reported along with a calculation
showing each taxpayer how much their tax bills would be reduced if
non-profits were taxed.</BLOCKQUOTE>
<BLOCKQUOTE> </BLOCKQUOTE>
<BLOCKQUOTE>Wayne A. Fox<BR>1009 Karen Lane<BR>PO Box 9421<BR>Moscow,
ID 83843</BLOCKQUOTE>
<BLOCKQUOTE> </BLOCKQUOTE>
<BLOCKQUOTE><A href="mailto:waf@moscow.com">waf@moscow.com</A><BR>208
882-7975</BLOCKQUOTE>
<BLOCKQUOTE><BR>
<BLOCKQUOTE>----- Original Message -----</BLOCKQUOTE>
<BLOCKQUOTE><B>From:</B> <A href="mailto:ttrail@moscow.com">Rep. Tom
Trail</A></BLOCKQUOTE>
<BLOCKQUOTE><B>To:</B> <A
href="mailto:vision2020@moscow.com">vision2020@moscow.com</A></BLOCKQUOTE>
<BLOCKQUOTE><B>Sent:</B> Wednesday, January 06, 2010 11:57 AM</BLOCKQUOTE>
<BLOCKQUOTE><B>Subject:</B> [Vision2020] pre-legislative newsletter from
Rep. Tom Trail</BLOCKQUOTE>
<BLOCKQUOTE> </BLOCKQUOTE>
<BLOCKQUOTE>PRE-LEGISLATIVE NEWSLETTER--IDAHO LEGISLATURE
2010<BR><BR>Constituents:<BR><BR>The Idaho Legislature will open on
January 11th. The Economy will<BR>dominate what takes place this
session. Idaho faces a $151 million<BR>deficit as of July
1st. Agencies cut 4% from their budgets, but still<BR>have a $50
hole. The Governor will outline his plans on January
11th.<BR>Further reductions in state agency spending and consolidating
some agency<BR>programs may be some of the options that he will talk
about.<BR><BR> 1. Budget and Taxes -- There are basically
four ways to balance the<BR>budget or a combination of some of these
options.<BR><BR> a. Cut agency
budgets and programs -- this appears to be the option<BR>that the
Governor will select. Public education and Higher<BR>Education
will no doubt see further reductions. This would be one<BR>of the
few times that public education would suffer a cut. Many<BR>quality
programs from our universities and colleges will have to
be<BR>eliminated. Outstanding faculty have already left the
University of<BR>Idaho seeking more stable conditions. Further
cuts in Medicaid may<BR>occur. One has to ask the question at what
point do we allow the<BR>quality of our educational programs not to
further go downhill.<BR><BR> b.
Examine Our Tax Exemption System -- To date we have 75 tax
tax<BR>exemptions which total up to be about $1.8 billion/year.
Each<BR>exemption benefits in general a small group of citizens or
an<BR>organization. The money from the exemption does not flow
into the<BR>state general fund but, in fact, can be viewed as a cost to
those<BR>taxpayers not benefiting from the
exemption.<BR><BR>
A tax exemption is granted by the State on the basis that it<BR>will be
a benefit to the State. However, to date no system has<BR>been set
up to require the beneficiaries of an exemption to come<BR>before the
Legislature to present in a transparent and accountable way to<BR>prove
the exemption's value to the State. If an exemption was found
not<BR>to be beneficial to the State then the funds could flow to the
State<BR>general fund and be used for priority programs. I am
working with several<BR>legislators who will be proposing that we Sunset
all 75 exemptions and set<BR>up a system to evaluate all 75 exemptions
on a timely basis.<BR><BR> c. Go
After Those Who Have Not Paid Their Taxes -- The Office
of<BR>Performance Evaluation estimates that about $300 million in
taxes go<BR>unpaid each year. The IRS reports the figure to
be about $350 million.<BR>Governor Phil Batt approved hiring additional
auditors back in 1996<BR>and the returns were about one to ten.
Six years the state spent<BR>$900,000 on auditors and got back $12
million. The Tax Commission in<BR>November outlined a strategy--with $10
million to hire 164 auditors<BR>the return would be about $65
million--more than enough to close<BR>budget gap. This is an
initiative that I can strongly
support.<BR><BR> d. Raise
Taxes -- This will not be a popular idea among
many<BR>legislators; however, the evidence appears that the
blood-letting<BR>with a series of budget cuts already experienced by
public<BR>education, higher education, and other programs has
caused<BR>irreversible damage-- then all options should be on the
table.<BR><BR> Tax
cuts for corporations are being advocated by some
Republican<BR>legislators. I'm opposed to this legislative
initiative. Idaho<BR>has a very poor track record in granting tax
breaks to lure big<BR>corporations into the state or not to move out of
the state. The case of</BLOCKQUOTE>
<BLOCKQUOTE>Micron and Albertson stand out as key examples.
Cash strapped<BR>communities across the country have a message for
corporations that<BR>promised jobs in return for big tax breaks.
Many corporations and<BR>businesses that were granted tax abatements and
other incentives simply<BR>did not deliver the promised number of jobs
and other economic<BR>enhancements. The newfound strength comes as
states that have long bent<BR>over backward to lure companies and jobs
to the tune of $60 billion/year.<BR>Agreements are now being written
that will take<BR>away the property tax break or a portion of it if the
company<BR>does not keep its promise or commitment.<BR><BR>
2. Other--There will be many other specific legislative
endeavors and<BR>issues that will emerge during the session, but the
economy is the<BR>dominating theme at this time. Idaho's
unemployment rate is about 10%<BR>and this doesn't include those whose
benefits have already run out.<BR>Idaho has paid out as much as $16
million/week in terms of unemployment<BR>benefits.<BR><BR>Please send me
your comments and suggestions to Rep. Tom
Trail<BR><BR>e-mail: <A
href="mailto:ttrail@house.idaho.gov">ttrail@house.idaho.gov</A><BR><BR>Rep.
Tom
Trail<BR><BR><BR>=======================================================<BR> List
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<A
href="mailto:Vision2020@moscow.com">mailto:Vision2020@moscow.com</A><BR>=======================================================</BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE>
<DIV><BR></DIV>
<DIV><BR></DIV><X-SIGSEP><PRE>--
</PRE></X-SIGSEP>
<DIV>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></BLOCKQUOTE></BODY></HTML>