"Should the State of Idaho keep the property tax relief adopted in August 2006, reducing property taxes by approximately $260 million and protecting funding for public schools by keeping the sales tax at 6%?"
I hate to say it, but I have to agree with the complaints many of the Democrats have made about Gov. Risch's plan!
It does give a net tax revenue reduction, and property owners in general will probably benefit.
However, those who don't own any property (generally the poor) will see only the 1% increase in sales tax!
Gov. Risch claims this isn't a tax shift because the state (at least initially) will bring in less taxes, but what do you call it when you bring in less taxes from one source, and then increase taxes from another source to make up for it?
This ignores the real issues of concern:
First, property tax is technically a violation of our Constitutional right to own property! If you don't believe me, try not paying your property tax! You'll quickly find out who really owns it! However, we are so unfamiliar with our Constitution, this is a long way from being corrected.
Second, Fiscal Responsibility. Before addressing any change in tax policy, we need to take a hard look at the spending of current tax revenues! In Idaho, for example, our public school system accounts for about half of the annual state budget! How efficiently is it being spent?
Consider this: If Idaho schools operated as efficiently as Utah schools we could actually have the Property Tax rebate with no 1 % sales tax increase!
