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Show Chronicle - Page Fourteen Monday, September 26, 1988 EDITORIAL idltori'arpages' are ffoir eveiryone' - ? J Snooker and Limerick Writing Contest in Batmandang, Cambodia. Nor is it the anniversary of the infamous turgid stag beetlespotted mulch toad massacre of July 4, 1769, which occurred on the frozen, d terrain of New England. No. This is more earthshaking. Much more. Today marks the first day of the 1988-8- 9 academic year at the University of Utah. And, as such, this space has been designated to explain the purpose of the Chronicle's editorial section. Since the Chronicle is a student newspaper, blood-drenche- ary . The Daily Utah C HRONICLE . -8 v an self-induc- ed bomb-throwin- -"- Mills Krenshaw, Merrill Cook and others have ecoloosely grounded their arguments in supply-sid- e nomics. Ironically, even many supply-sia-e supporters (myself included) realize the inapplicability of Cook's hypothesis in Utah's economy. As an observer might expect, both Krenshaw and Cook have cited the 'Laffer Curve" (a theory developed by economist Arthur Laffer) to demonstrate the beneficial effects of their tax aits. The Laffer Curve suggests that an ideal eauiUbrium exists between taxes (ie. services provided) and the production of taxable income. Theoretically, reduced taxes will increase the industrial base, as well as per capita earnings. Thus, although the tax rate is lower, the increases in taxable monies will offset (even surpass) losses incurred through the tax cuts. Nice, isn't it? V Unfortunately, even Arthur Laffer himself concedes that the point where taxes and production converge is difficult to determine. Further, supply-sider- s recognize that tax cuts, without concomitant reductions in spending, will result in an immediate deficit (David Stockman lost his Reagan administration position for making that same point). Simply examine the current U.S. deficit if you need an example. Remember though, Utah's economic structure is considerably different than the U.S. economy. Consider these differences and their potential effects: 1. Utah is a singular economic entity. The U.S. economy consists of many economic regions and industries which can counteract regional periods of economic stagnation. The economic g of the nation is contingent on the aggregate condition of its economic components. If Utah's economy begins to deteriorate, only federal aid can rescue the state from its malaise. Utah simply lacks the economic depth to survive the assured deficit (or loss of services) that the state will sustain should the initia-tive- s ' be enacted. Utah 2. is not (and will never be) an industrial- - ' based economy. Merrill Cook's belief that "smokestack" industry can be lured to the state through reduced taxes is entirely unfounded. First, Cook's argument illustrates his mistaken assumption that an amenable ' tax climate is sufficient to entice industry into Utah. In actuality, most recently established businesses in Utah cite such factors as the educational system, public safety, the University of Utah, and recreational possibilities as being foremost in their decision to locate in Utah. Utah's taxes are more than adequately competitive with surrounding regions. Interestingly, tax initiative proponents have mistaken the role of taxes for the products of those taxes. 3. Utah's taxes are almost exclusively dedicated to essential services (ie. infrastructure and education). In their misguided attempts to lure economic activity into the state, advocates of the tax rollbacks will damage the very services which make Utah attractive to business. Moreover, Utah's taxes are not particularly high. Contrary the tax initiative argument that "fat" can be "trimmed" from our state's "porkbarrel" bud well-oein- political gamut, from outraged conservatives to militant moderates to g radicals (well, maybe that's a slight exaggeration.) Seek and ye shall also find cartoons in the pages of the editorial section. The Chronicle features cartoons from nationally syndicated cartoonists Dick Wright, of the Providence, Rl, Journal and Mike Peters of the Dayton Daily News. Other cartoons will appear from the College Press Service, as well as our own staff artists. And one final note before this big slab of gray text comes to a resounding conclusion: Hie editorial section can remain viable only if students, faculty and staff continue to participate and contribute. I terpreted economic theories presented by tax initiative proponents present Utah with the formula for economic disaster. : g) an independent "'B Ediltorial Board: Lori Bona Hunt tamarah Hardesty, Darren Hawkins, Andrew. Hunt, Justin Toth Editor in Chief. M : ej!i nSiEr 7r tufwpaperg Snnrtt Kditnt H""""! Editorial reflect the opinion of the editorial board, and not necessarily the opinions of the student body or the administration. Subscriptions arc $25 a year, $10 an academic quarter. All subscription must be prepaid. Forward all subscription correspondence, including chance of address, to the Business Manager, Onry (As Omrnide, 240 Union, University of Utah, Sah Lake dry, Utah Muz . "" - Feature Editor. Photography Editor....... Copy Editor. Night Editor. Assistant News Editor Assistant Editorial Editor. . . Assistant Sparta Editor. ... , . disastrous for U r non-partis- Where were we? Oh yeah, the Chronicle encourages students, faculty and staff to submit letters to the editor, columns, short essays and so forth. Columns and letters should feature the student's name, major, year and highest pachinko score. The Chronicle reserves the right to edit all material for libel, length and taste. If you wish to contribute a letter or column, or you just want to express your concerns and ideas, come into Union 240 any time. In addition to letters and columns, the Chronicle editorial staff plans to gauge campus opinion with a regular "What U. Think'' survey, in which we will seek the views of students on issues of the day. pressing (or Opinion columns by Chronicle staffers can also be found on the pages of the editorial section, offering a plethora of opinions running the I Tke Daffy Utah Chronicle is . Questionable data and conveniently rein- . Moscow, Idaho. not-so-pressin- Mustin Toth Death and taxes may be two "sure things" in life, but we should certainly add the negative effects of the tax intiatives to that list Supporters of Utah's tax "revolt" have curiously avoided questions concerning the ramifications of their initiatives. I find this not only at odds with the idea of political accountability, but cause for questioning the motives behind the initiative movement itself. Further, in combining questionable data with conveniently reinterpreted economic theories, advocates of the tax rollback have presented Utah with the formula for economic disaster. No it's not the 93rd Annual Skeetball, and since the editorial section represents the forum of student debate and discourse, then it is in the best interest of students to continue reading this short treatise. To begin with, on a daily basis, the left side of every editorial page will be adorned with a house editorial (the thing you're reading right now). Alas, the house editorial is a necessary evil. Nonetheless, we promise our best to make them as interesting creative and readable as we possibly can. The house editorial reflects the opinion of the Chronicle. The editorial board meets once a day to select topics and to establish the paper's stand. The members of the board are Lori Bona Hunt, Tamarah Hardesty, Darren Hawkins, Andrew Hunt and Justin Toth. But hold on to your powdered wigs 'n' coon-ski- n caps, kiddies. This gets more exciting than a pack of wild fruit bats in a '62 Ford Galazie floating around the highways and biways of 1 ' Tax initiatives Today marks a very significant date. pre-revolution- K,. .Darren Hawkins ..7.... Andrew Hunt Xorj Bona Hunt Justin Toth Kent Condon . . . Deanie Wimmer Guy Elder Ellen Garff Hawkins . . Amber McKee .... . ... ... Ed Ruix' .Tamarah Hardesty ........... .... Dirk Facer Assistant Feature Editor. Assistant Photography Editor. Assistant Copy Editor. . Administration Reporter. . . ,. icririn New Writers... .... Photographer; Business Manager. . Accountant . . . ... infla-tioiLl- sys-ter- 25-3- al must realize the impact of the tax is not simply a theoretical possibility, but a fiscal reality. We ... .'. ... ."1 tf ...... non-verifiab- . le, . .v.;-.:i'.'VW- Classified. . . . Aaron Ashcraft Steve Moore ... .Ken Southwick Scott Stone Artists. ............. Accounting Clerk. Collections..... met . . .. Robert McOmber Kay Anderson -- .'. Charlene Collins ..... .Byron Williams Charles Lai ......... JCimBartel .... . . . . . ...........WePack . . . . .Tammie Bos tick. r. As Darren Tucker . KeiryShea Artene Calkin,. i. Loren ft jorgensen , . .yworew nouowajr ..;;..;..... .t ... . . ....... es bi-parti- jum. . ini-tiativ- In spite of substantial evidence to the contrary, proponents of the initiatives maintain that Utah will benefit from the tax rollbacks. I am particularly offended at the methods of argument employed by these individuals. As the academic and political communities have presented extensive statistical data illustrating the disastrous effects of the tax cuts, initiative advocates have attempted to polarize the issue into "special interests and government" vs. ''the interests of the little guy." (As if we are supposed to believe that education and infrastructure were "special" interests). In substitute for any reliable data in their favor, Cook, Krenshaw and others have proffered as well as incorrect, statistics. While have been unable to convince the public of their they the accuracy, contradictory information has been sufficient to create public skepticism concerning any data. (In other words, if you can't dazzle the public with brilliance, baffle them with bullshit.) There is little doubt the tax initiative issue will be the political "hot potato" in Utah this .year. As students, we should be concerned that these initiatives threaten the quality of our education As Utahns, we should defend the quality of life which has taken us so long to achieve. As voters, we should vote against the tax initiatives. Justin Toth, a senior majoring in political science and philosophy, is the Chronicle's editorial editor. . ...j Feature Writer.. Sport Writer. , i n million increase in costs from enrollment and the past several years, Utah's colleges and universities have done this with only a $27.3 million budgetary increase. In other words, $18.2 million has been absorbed in the form of cutbacks and departmental budget reductions. How odd that tax initiative proponents would suggest that "iat" exists in such an apparently diminished budget Utah's economy is quite different from the U.S. economy as a whole. Tax initiative proponent's erroneous use of the tenets of supply-sid- e economics only serves to illustrate their limited understanding of Utah's economy. Briefly, Utah's public education n would suffer a $1 25 million loss (Realize that these figures do not include the additional millions of dollars which will be lost in federal matching funds). $43.4 million would be cut from the Transportation and Public Safety budget (and you thought the roads were bad now!). $13 million worth of social services would be denied to the people who depend on the state for assistance. An additional $40 million would rje pared away from me Health Department, State Corrections programs, and other city and county budgets. The state's higher education system would be injured to the tune of $33.9 million, but the students,.., of those institutions would suffer tremendously. Envision this scenario: 1. Tuition skyrockets 0 above its current rate. 2. Many periphery programs will be cut entirely and some core programs will suffer extensive finan-riV" cutbacks. 3. The reduction of statewide college enrollment by 9,000 students. Aside from the number of students who will be excluded simply through enrollment quotas, the increased tuition will push the costs of a college education out of reach for many middle-clas- s Utah families. Yet, many of the worst effects will not be felt until superior faculty and research personnel abandon the U. for better career opportunities elsewhere. ,The effects of the tax initiatives on the University of Utah will be severe and lasting. ... Sharon Deckert ... . .. gets, Utah's essential services will be adversely effect- -' ed from budget reductions. For example, Utah's institutions of higher education have experienced a $45.5 SaraWUaon);-MattDaltoiv'-Ji- Sanone f Production Manager, . ..... ( Assistant Production Manager. . : . nooucnon Assistant .m, ......... Dtotrawtton.....:....;... '.. Sean Buckley Michael Q. deary . . R. Kenny Watanabe ... ...... .Abbie Hall David Orchard Christopher Stratford. ...... r ' |
