<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;color:#000000;"><h3>September 12, 2010</h3>
<h1>Our View: When taxes seep from the system, guess who gets soaked?</h1>
<h2 id="byLine">
- Idaho Statesman</h2>
<strong>W</strong>hen one whistleblower complains, it's a little easier to write it off as the act of a disgruntled worker.<p>When a legislator takes up the cause and files a lawsuit, it's a little easier to dismiss the move as political posturing.</p><p>But what does it mean when the roster of whistleblowers continues to grow?</p><p>It
means, in the case of the State Tax Commission, that a serious
credibility gap keeps right on growing. This is the agency that is
supposed to collect tax dollars from people or businesses that won't pay
up. Idahoans should be able to trust the commission to pursue tax
cheats without playing favorites - not just to collect dollars for
schools and other needed state services, but to make sure everybody pays
their fair share.</p><p>That's how it should work, anyway. But eight
current or former employees have signed affidavits in a lawsuit against
the commission, The Times-News in Twin Falls reported last week. The
longtime employees echo what is by now a familiar theme: The commission
has cut sweetheart deals with companies that have protested their tax
bills.</p><p>Among the "highlights," as reported by The Times-News:</p><p>®
Commission manager Barbara Nichols said one Idahoan received a $1.6
million break before an audit was issued - backing up a claim made by a
former commission auditor.</p><p>® Paul Chugg, an auditor, said he
protested a commission decision to write off $400,000 in penalties - and
was threatened with disciplinary action.</p><p>None of this comes from
out of nowhere. The complaints more or less jibe with claims made in
2008 by commission auditor Stan Howland. He alleged that several of the
commission's secret "compromise and closing agreements" cost Idaho
taxpayers anywhere from $46,000 to $680,000 a pop.</p><p>Howland's
claims caught the attention of Rep. Shirley Ringo, D-Moscow, who
enlisted former state Supreme Court justice (and one-time Democratic
gubernatorial candidate) Robert Huntley to file a lawsuit challenging
the constitutionality of these preferential deals.</p><p>While
politicians are motivated by a desire for publicity, the same does not
necessarily hold true for career Tax Commission employees. Chugg talks
about a "public duty" to testify. Another longtime auditor, Terry
Harvey, laments continued failings in the system that result in "unequal
taxation." It's hard to fathom much career gain that comes from going
public<strong> </strong>against current or past bosses.</p><p>And that gives their claims sufficient weight to justify a thorough public airing.</p><p>After
all, these are public dollars - a tax debt that should be shared, if
not gleefully, then at least equitably. The mounting claims suggest a
system that allows the wealthy and the powerful to bend the rules into a
shape of their choosing. When they get their way, the need for money
for school textbooks or Medicaid prescriptions doesn't go away. It
simply gets shifted to the rest of us.</p><p>When the bigwigs play to win - and prevail - the less politically connected among us get played for suckers.</p><p>That's
why you should care when the system is criticized by eight longtime Tax
Commission employees. And that's why legislators ought to care as well.</p><p>Especially
when public education and public health programs are scrambling for
dollars more than ever before. And especially when some politicos and
special interests are talking about injecting more tax dollars into
state coffers, by eliminating some sales tax exemptions or by
aggressively pursuing sales taxes on Internet purchases.</p><p>Before
Idaho pursues any new taxes, common sense and basic fairness call for
collecting the existing taxes consistently and fairly.</p><p>That's how
things should work. More and more, the evidence suggests Idaho's tax
system works best for those who know how to work the system.</p>"Our
View" is the editorial position of the Idaho Statesman. It is an
unsigned opinion expressing the consensus of the Statesman's editorial
board. To comment or suggest a topic, e-mail
editorial@idahostatesman.com.</div><br>
</body></html>