| Show MMIMMEEMIMEMM1 Arguments For Rebuttal To Arguments For Initiative If citizens vote yes to eliminate the sales tax on food every citizen in Utah—man woman or child—will get the weeks of free food each year Utahns are equivalent of some of the highest taxed and lowest paid people in the US We need to reduce the tax burden on our people State and local Three—and--a—hal- f 3-- 112 weeks of free food? Utahns don't ex- pect something for nothing Utahns are fair—minded and believe that everyone who benefits from government services should help pay for them The sales tax on food gives everyone the opportunity to support this great state On average states that exempt food from sales tax have higher property and sales tax rates than states governments have been growing rapidly while personal income after inflation has been shrinking In the last nine years the per–capita state and local tax burden has grown from $964 in 1981 to $1554 in 1989 a whopping 62 increase At the same time however per–capita disposable income in Utah has grown only 31 from $7432 to $9800 and Utah's averfrom $284 to $344 rankage weekly wage has risen only 21 in us the 49th nation of ing (University Utah's Bureau of Economic and Business Research) With inflation up 36 since 1981 personal incomes have deteriorated badly while government has been growing and taking a larger percentage of personal incomes Eliminating the sales tax from food will help correct this imbalance Utah can afford to remove the sales tax from food because (1) state surpluses are growing at a rate greater than the amount of taxes lost from removing the sales tax from food (2) unfair loopholes in the tax system brought on by special– interest control of state government could and should be closed and (3) government waste and unwise use of tax dollars should be curtailed that don't Proponents of Initiative A remain unclear as to their pur- pose: First proponents claim we have a state government surplus that would cover the cost of removing the sales tax on food Collection of sales taxes last year exceeded projections by $56 million hardly enough to cover the $90 million loss Proponents also ignore court cases that could cost the state over $200 million Second proponents would eliminate tax privileges given to unnamed "special interests" If they are referring to the sales tax exemption that ended June 30 1989 given to Kennecott Copper for modernization then we might ask what would Utah's economy be like without a revitalized copper industry? Surplus Surpluses are now accruing at the rate of $28 million per quarter or $11 '2 million per year The food tax removal will cut about $90 million per year Thus the surplus alone would more than compensate for the food tax Loopholes Special interests with powerful lobbyists get sales tax exemptions Why shouldn't the average citizen big then get an exemption for food? Third proponents suggest that removing the sales tax off food will make government more efficient Like it did in New Jersey? New York? Massachusetts? Cutting taxes does not guarantee efficiency In 1988 the nation on average spend $4527 per student Utah $2454 Still more Utah students took college entrance exams and scored above national averages Wasteful and Unwise Spending According to the Governor's own Committee on Cost–effective Government over $200 million is lost annually because of duplication of service lax management and too much bureaucracy At the state level Syncrete cold fusion prior to confirmation ski industry subsidies lake pumps and procedures at Timpanogos Mental Health and at the local level Select Telephone and Lake Wasatch are just a few examples of unwise spending Cutting wasteful spending will allow budget adjustments without hurting essential–service and human–service programs Why cut taxes on food rather than some other tax? Income property and gasoline taxes in Utah are high However the sales tax is the most out of line with Utah sales tax on food being the third highest in the nation Utah's income taxes are Ilth highest and property taxes about 22nd highest Sales tax on food is the most regressive tax (The lower one's income the greater the percentage going to food tax) It is one of the onl tax cuts that would help people making less than $40000 per year Thirty–two states do not tax food the most basic necessity Utah shouldn't either! Vote for elected officials who will strive to give us essential government services and a fair tax structure Vote NO on this arbitrary and isolated tax proposal! Representative Nolan E Karras the House of Representatives of Speaker 2195 West 4250 South Roy Utah 84067 Merrill Cook Chairman The Independent Party of Utah 2026 Beneficial Life Tower Salt Lake City Utah 841 4 11 16 |
