<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv=Content-Type content="text/html; charset=us-ascii">
<meta name=Generator content="Microsoft Word 12 (filtered medium)">
<style>
<!--
/* Font Definitions */
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Times New Roman","serif";}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
span.EmailStyle17
{mso-style-type:personal-reply;
font-family:"Calibri","sans-serif";
color:#1F497D;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page Section1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.Section1
{page:Section1;}
-->
</style>
<!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body bgcolor=white lang=EN-US link=blue vlink=purple>
<div class=Section1>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'>Wayne and Visionaries,<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-right:429.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'>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.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-right:429.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-right:429.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'>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.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-right:429.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-right:429.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'>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.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-right:429.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-right:429.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'>I hope the 2010 legislature
will take these issues seriously. We’ll see.<o:p></o:p></span></p>
<p class=MsoNormal style='margin-right:429.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal style='margin-right:429.75pt'><span style='font-size:11.0pt;
font-family:"Calibri","sans-serif";color:#1F497D'>Judy<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<div>
<div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'>
<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> 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<o:p></o:p></span></p>
</div>
</div>
<p class=MsoNormal><o:p> </o:p></p>
<div>
<p class=MsoNormal><span style='font-size:10.0pt'>Tom,</span><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal> <o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><span style='font-size:10.0pt'>Thank you for the outline.</span><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal> <o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><span style='font-size:10.0pt'>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. </span><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal> <o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><span style='font-size:10.0pt'>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.</span><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal> <o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><span style='font-size:10.0pt'>Wayne A. Fox<br>
1009 Karen Lane<br>
PO Box 9421<br>
Moscow, ID 83843</span><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal> <o:p></o:p></p>
</div>
<div>
<p class=MsoNormal><span style='font-size:10.0pt'><a
href="mailto:waf@moscow.com">waf@moscow.com</a><br>
208 882-7975</span><o:p></o:p></p>
</div>
<div>
<p class=MsoNormal> <o:p></o:p></p>
</div>
<blockquote style='border:none;border-left:solid black 1.5pt;padding:0in 0in 0in 4.0pt;
margin-left:3.75pt;margin-top:5.0pt;margin-right:0in;margin-bottom:5.0pt'>
<div>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>-----
Original Message ----- <o:p></o:p></span></p>
</div>
<div>
<p class=MsoNormal style='background:#E4E4E4'><b><span style='font-size:10.0pt;
font-family:"Arial","sans-serif"'>From:</span></b><span style='font-size:10.0pt;
font-family:"Arial","sans-serif"'> <a href="mailto:ttrail@moscow.com"
title="ttrail@moscow.com">Rep. Tom Trail</a> <o:p></o:p></span></p>
</div>
<div>
<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>To:</span></b><span
style='font-size:10.0pt;font-family:"Arial","sans-serif"'> <a
href="mailto:vision2020@moscow.com" title="vision2020@moscow.com">vision2020@moscow.com</a>
<o:p></o:p></span></p>
</div>
<div>
<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Sent:</span></b><span
style='font-size:10.0pt;font-family:"Arial","sans-serif"'> Wednesday, January
06, 2010 11:57 AM<o:p></o:p></span></p>
</div>
<div>
<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Subject:</span></b><span
style='font-size:10.0pt;font-family:"Arial","sans-serif"'> [Vision2020]
pre-legislative newsletter from Rep. Tom Trail<o:p></o:p></span></p>
</div>
<div>
<p class=MsoNormal><o:p> </o:p></p>
</div>
<p class=MsoNormal>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<br>
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 services made available by First Step Internet, <br>
serving the communities of the Palouse since 1994. <br>
<a href="http://www.fsr.net">http://www.fsr.net</a>
<br>
<a
href="mailto:Vision2020@moscow.com">mailto:Vision2020@moscow.com</a><br>
=======================================================<o:p></o:p></p>
</blockquote>
</div>
</body>
</html>