I told you the posturing “games” have already begun…and just in time for the Holidays!

It’s Not Unlike A Sword Fight

Whilst in swordplay, the sabre is my weapon of choice, razor sharp on edge, slightly cambered, and fashioned to a fine tip.  To hell with the quip that “the pen is mightier than the sword.”  The person who believes that gobbledygook has never held a finely balanced hand-crafted sword.  A blade which falling under its own weight would without effort divide a torso in two.  It makes me shiver just to think of it.   (The Frankein Journals)

The House Majority Caucus Position

Well advertised is the fact the House Majority Caucus has taken a position of $300M in tax reform/cuts for this coming year (coupled proportionally with new education spending).  Not as well known is the fact that the House Majority has NOT taken a position on the “mix” of tax policy changes associated with the current caucus position.

The recent implication by the other body, as stated on their Blog, is that the House won’t be prudent in its approach to providing further relief for the over-taxed citizenry of our state.  Remember, BIG SURPLUSES of $1.5B last year plus $1.6B+ this year equals OVER-TAXATION.  

Fat cats rarely worry about where their next mouse is coming from.

Utah Is Stable

True, Utah has a AAA bond rating.  Bravo.  Other than a Blogger, ask someone who knows how that rating is actually calculated and what criteria is used to determine a state’s solvency.  So much more is considered than just the state’s mix of taxation (e.g. rainy-day fund levels–Full, employment levels–2.6% Unemployment, etc).  The senate’s argument in this regard is nothing less than a spending smoke screen—a momentary attention diversion device.

According to a recent Utah Taxpayers Association article, Utah ranks 4th in the Nation in individual tax burden.  We’re at the top!  But this top is not where we want to be standing.  There is room for improvement through further reform—sales tax removal on non-prepared food is just one of several potential considerations.

Sales Tax On Non-Prepared Food Is A Regressive Tax

Mom and dad moved up from California a year and a half ago.  Just after they arrived, we were sitting down to one of our bi-weekly Sunday evening family dinners when my dad broached the Sales Tax on food topic.  I could tell he was agitated.  You see in California, there’s no sales tax on food!  Nada, nunca.  He suggested that if we were going to tax consumables that maybe we also find a way to tax people’s gardens, too!  I told him I’d look into it.

My parents are “retired,” living on a fixed pension from my dad’s employment at a public utility for 27 years.  Food tax is regressive for those on fixed incomes (annual inflationary factors cause more disposable income of the retired and the poor to be spent on necessary consumables such as food and healthcare, etc.).  The food tax is a good place to make cuts because it reduces tax burden for everyone across the state.  The further removal of sales tax on food (2.75%) of the state’s portion (not addressing the local food sales option) is a miniscule portion of the overall retail taxes we pay.

In a couple of weeks, January 1st 2007, we will remove nearly half the state sales tax component (2%) on non-prepared food costing the state’s General Fund only $70M out of this year’s $10,700,000,000 (Governor’s) proposed FY08 budget. Will we miss the money?  My guess is…nope!!!  Remember, we have a $1,600,000,000.00 surplus to distract us.

REMEMBER WE’RE ONLY TALKING ABOUT THE SALES TAX COMPONENT ON NON-PREPARED FOODS—LIFE SUSTAINING BASICS.   THE STATE GOVERNMENT HAS NOT MANAGED TO EXTEND YOU A BREAK ON OTHER GOODS PURCHASED AT THE RETAIL LEVEL.  AND, DON’T BE THINKIN’ YOU’LL BE GETTING’ A BREAK ANYTIME SOON ON THOSE TASTY, FAT-FILLED, DEEP-FRIED PREPARED FOODS—YA’ KNOW THE ONES THAT ARE SEVERLY ADDICTIVE?!

We Tried To Take It All Off

The Utah League of Cities and Towns expressed their concern last session over the removal of the total tax on non-prepared food because it would have taken coveted local tax revenues from county and municipal coffers (local portion, local options or boutique taxes, RAP, ZAP, etc.)  Heaven forbid!  Then someone proposed shifting the sales tax deficit from the removal of sales tax on non-prepared food by increasing the local property tax burden—creating what some affectionately term “revenue neutrality.”  Needless to say, the power of the lobby overcame the option and the local tax component and options remained.

There’s Plenty Where That Came From 

Utah’s economy will not become “unstable” because the Legislature removes an additional 2.75% of the state’s portion of sales tax collected on non-prepared foods.  On the contrary, it is the tendency of the food purchasing public—everyone—to take their tax cut dollars from additional reform (disposable income) and re-inject those dollars immediately into the local economy by spending it (remember the Bush tax cut—mine’s gone, how about yours?…see what the effects of that tax rebate had on our local and national economies).  Removing the remaining State Sales Tax component (2.75%) on Non-Prepared Foods will not damage our state’s economy—and, heaven willing, the Senate will be no worse for the wear.
Parry…thrust…