<html><head><style type="text/css"><!-- DIV {margin:0px;} --></style></head><body><div style="font-family:times new roman,new york,times,serif;font-size:12pt"><div>While I wouldn't presume to read politicians' minds, I believe the desire to cut taxes is not directed at attracting new business to the state. It's so that the businesses who are already here (and fund the politicians' campaigns) get to keep more money. "Economic Development" is just a smokescreen, as attested by numerous studies like the Louisiana one cited.<br><br>Ron Force<br> Moscow, ID USA<br></div><div style="font-family: times new roman,new york,times,serif; font-size: 12pt;"><br><div style="font-family: times new roman,new york,times,serif; font-size: 12pt;"><font face="Tahoma" size="2"><hr size="1"><b><span style="font-weight: bold;">From:</span></b> Bill London <london@moscow.com><br><b><span style="font-weight: bold;">To:</span></b> vision2020@secure.fsr.com<br><b><span
style="font-weight: bold;">Sent:</span></b> Sat, January 23, 2010 11:38:39 AM<br><b><span style="font-weight: bold;">Subject:</span></b> [Vision2020] Tribune editorial on faith and taxes<br></font><br>
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<p>Trillhaase has come through with another excellent editorial (see below) in
today's Tribune. </p>
<p>The Republican fantasy that cutting taxes boosts economic development has
become an article of faith, not an experience based in reality. Please
note the Louisiana study that Trillhaase cites. Corporations and
entrepreneurs (the ones every city and state is courting) just do not care as
much about tax rates as they do about good schools, roads, and amenities.
The study also applies to cities like Moscow where short-sighted conservatives
want to cut back on Moscow's quality of life and gut community control of
business in their faith-based economic development fantasy.</p>
<p>BL</p></h1>
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<h1>Lewiston Tribune</h1>
<h1>Who needs facts? Tax-cutters have faith</h1>
<p>Marty Trillhaase<br>January 23, 2010</p>
<p>Idaho's House Republican leaders are brewing a new batch of voodoo
economics.</p>
<p>When they are finished, they ought to name their product "Faith-based
Economics."</p>
<p>Why not? </p>
<p>House Majority Leader Mike Moyle, R-Star, and his allies know what they
believe - or is it the other way around?</p>
<p>They're promoting a vigorous round of income tax cuts. Corporations and
wealthy individuals would pay a third less. Moyle and company are promoting this
idea just as the state is weathering year two of falling tax revenues and budget
cuts. Their plan would take effect in 2012 and be phased in over the next
decade.</p>
<p>The Idaho Statesman's Dan Popkey says Moyle, House Speaker Lawerence Denney,
R-Midvale, Rep. Raul Labrador, R-Eagle, and Rep. Marv Hagedorn, R-Meridian, are
"drop dead serious."</p>
<p>"If you really believe in Reaganomics that less is more, this has the
potential to get us out of this situation," says Denney. </p>
<p>Confronted with a recent state Tax Commission review that shows Idaho's tax
burden is the sixth lowest in the nation, the House members rounded up their own
study. The conservative Tax Foundation says Idaho's tax climate is poor.</p>
<p>OK, but if you cut taxes, Idaho's already crimped budget could be injured
more. Prepared by Gov. C. L. (Butch) Otter's budget office and the tax
commission, a fiscal statement suggests this bill would cost the state $55
million in 2012 and $250 million by 2021.</p>
<p>What do they know? This is faith we're talking about.</p>
<p>The figures "don't make any sense," Hagedorn says. Cut taxes and the economy
will bloom, producing more revenues overall. It will work out. </p>
<p>You just need to have a little faith.</p>
<p>And a short memory.</p>
<p>When Ronald Reagan was elected in 1980, he complained the $74 billion federal
budget deficit was "out of control." He promptly cut taxes and the deficit
swelled to $208 million. When he left office, Reagan had expanded the national
debt from $930 billion to $2.6 trillion. Following his example, George W. Bush
cut taxes again and the debt got even worse.</p>
<p>Of course, when Reagan and Bush got it wrong, they simply borrowed more
money. Idaho must balance its budget. When there's less money, programs get
slashed or other taxes get raised.</p>
<p>What's history when you believe lower taxes will attract all those businesses
now aching to move to Idaho?</p>
<p>Anybody notice how the Legislature's tax cuts of 2001 - which triggered a
budget crunch not long after - and in 2006 managed to spare Idaho from the
recessions of 2002 and 2008? It didn't happen because tax cuts don't bring new
businesses.</p>
<p>Investments in an educated and skilled labor pool attract new employers.</p>
<p>Proximity to markets and transportation systems bring industry.</p>
<p>So does cheap labor, low crime, good health care and quality schools.</p>
<p>In its survey of employers, Louisiana economic development promoters and the
state's governor's office found low corporate taxes ranked 10th on the list of
concerns. State and local incentives were 16th. Tax exemptions came in 18th.</p>
<p>So the way to jump start Idaho's economy would be investing in schools,
universities and transportation systems.</p>
<p>Nah. </p>
<p>Moyle and his crew would never believe it. -
M.T.</p></font></div><meta http-equiv="x-dns-prefetch-control" content="on"></div></div>
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