Broaden the base?

Yesterday's Salt Lake Tribune featured an editorial titled "Broaden the base: State should extend sales tax to services." If you didn't get the opportunity to read that editorial CLICK HERE.

The whole premise of taxing services stems from the view of the legislature that the recent cuts (especially the sales tax on food reductions according to the Senate) have made the state's revenue streams less stable. Their argument continues that a full removal of the sales tax on food would only further destabilize the tax revenue the state collects and would open the state up to a lack of money during lean years.

Thus, there is great opposition by the Senate to removing any more of the food tax. The SL Tribune's Editorial Board is advocating for a broader tax base by keeping the remaining state portion of the food tax (1.75% on unprepared food) and by levying a tax on services, such as lawn maintenance, hair cuts, etc.

CORC thinks that there is a better way to broaden the tax base and fully remove the sales tax on a basic necessity - food.

There are currently over $441 million dollars worth of items that sales tax is not collected on; money that would otherwise go to the state (plus $166.8 million that would go to cities/counties). While there are many items on the exemption list that should be tax exempt, such as prescription drugs, hearing aids, renewable energy equipment, and others - there are many items receiving exemptions by the state that aren't as worthy.

There are currently no state sales tax dollars being collected on:

Coin operated amusement devices - revenue lost = $694,000
Ski resort equipment - revenue lost = $502,000 in 2005 (this number has been much larger)
Automobiles bought by non-residents - revenue lost = $5,586,000

Many other exemptions that might be considered corporate welfare.

Thus, CORC advocates for a special considerations of all purchases that are currently tax exempt. This consideration should bring more tax dollars to the state, thus broadening the base.

What ideas do you have for broadening the tax base AND fully removing the highly regressive, highly unfair sales tax on food?

Thanks

Linda and Adam:
Thanks for a very helpful Annual Meeting - we need to do it more than once a year. I thought Dorothy's observations on the food tax bill possibilities were very helpful. I like the idea of concentrating on one or two vital issues until we either succeed or get skunked.
Ron Holdsworth

Success!

The Annual CORC Road Trip and Annual Member meeting just took place and can be considered a great success! Meetings were well attended, members helped give input about CORC's direction for the coming year, and people across the state got excited about issues.

It was great to visit the CORC groups in Richfield, Parowan, Cedar City, St. George, and Moab as well as to see the many members who were able to make it to Annual Meeting. All in all, hopefully everyone learned a little, met new people, and had a great time talking about social justice.

Here are some pictures from the events.



CORC members in Parowan discuss a local ordinance on payday lending



CORC members in Richfield talk about the state sales tax on food with Rep. Kay McIff


Rep. Ron Bigelow gives the Keynote Address at Annual Meeting


A breakout group discusses state sales tax exemptions at Annual Meeting

Anyone want to comment/post about their experiences at Annual Meeting or from the Road Trip?

Be there

CORC Annual Meeting
Tuesday, April 24th
5pm - 9pm
St. Marks Cathedral
231 South 100 East - Salt Lake City

Everyone is encouraged to come to this year's CORC Annual Meeting. Rep. Ron Bigelow will be giving a presentation about the state's budget and how it is created. Rep. Bigelow is the House of Representatives Chairman of the Executive Appropriations Committee.


Join us to hear this interesting and educational presentation, to help steer CORC's issues for the coming year, and to have great food and fellowship.

Bus Price Hikes?

The Utah Transit Authority is proposing to:

a) increase the price of a monthly bus pass from $50 to $67 and increase the price for one way bus service from $1.50 to $2.

b) increase the bus pass for seniors and people with disabilities from $25 to $33.50 and the price of bus fare for seniors and people with disabilities from $.75 to $1.

c) increase the price for paratransit service.

Come to the Public Hearing
Thursday, April 5 at 6:30
Salt Lake City Main Library
4th Floor

This is your chance to tell them what you
think about these fare increases!

JOIN THE CORC BLOG!

To become a contributor to the CORC blog - which will give you access to make posts to the blog - email Adam - adam(at)crossroads-u-c.org

After you email Adam, he will add you to the list of authors for the blog and you will receive an email confirmation from Blogger. You will need a Blogger account to post - but the email officially inviting you to join the blog will prompt you to set up an account.