| Show Arguments Against Rebuttal To Initiative A is confusing as to its true purpose: ( I) If Initiative A is to help lower income people it does so INEFFICIENTLY A family of four whose annual income exceeds $60000 will receive an average tax reduction of $270 while people whose annual incomes are below $20000 will receive an average tax reduction of only $170 Food stamp purchases are already exempt from the sales tax and so people who rely on stamps will realize no benefit There are much better methods of helping these individuals (2) If Initiative A is to shift the tax burden it does not accomplish this directly But if it is adopted the pressures will be very high to replace that lost revenue with INCREASED property utility or income taxes or all three especially at the local government level where communities rely heavily on these taxes (3) If Initiative A is to change the state's tax base it does so arbitrarily while adding a significant LOOPHOLE For example one of the largest segments of the sales tax base is the tourist industry Yet the initiative would allow tourists to buy food without helping to pay for public services they use while visiting the state Initiative A is not a good way to reduce taxes in Utah Tax reduction is a worthy goal but must be done in the context of a budget process where resources and needs can be evaluated and understood In both 1988 and 1989 all income tax rates were cut lowering for example the top rate from 775 to 72 This is the more responsible way to cut taxes Initiative A makes our tax base less stable Removing food from the sales tax base the most stable part of the base makes sales tax a LESS RELIABLE source of revenue Revenues will fluctuate with every change in the economy Good tax policy means keeping a broad base with low rates Initiative A would significantly reduce state government services Sales tax from food comprises over 10 of the general funds of the state ( $90 million out of $860 million ) Initiative A would result in large CUTS in the budgets of higher education health and human services economic development public safety prisons and other vital services Even public education would be cut because it too receives general fund moneys Initiative A would significantly reduce local government revenues Local governments would lose $23 million a loss that would be distributed UNEVENLY among the various communities In some communities food sales comprise as much as 25 of taxable sales and as little as 3 in others For example Sale Lake City would lose over $2 million of revenue An ARBITRARY and ISOLATED change in the tax structure does not serve the best interests of Utah This is why this proposal was defeated in 1980 and why it should be defeated again in 1990 Vote NO on Initiative A! A rg uments Representative Nolan E Karras of the House of Representatives Speaker 2195 West 4250 South Roy Utah 84067 Against Initiative A Initiative A is understandable It will help not only low— income citizens but every other citizen as well — in every county of Utah It is one of the only tax cuts that benefits people making less than $40000 per year THE SURPLUS BELONGS TO THE PEOPLE Because of huge state surpluses now accruing the government does not have to raise other taxes or cut essential services (These are only scare tactics) Surpluses notwithstanding raising teaching loads at state universities from six to eight hours per week will save taxpayers $50 million per year and negate any need for tuition hikes The State could divert an additional 16th cent of the general sales tax to cities and towns to counterbalance their losses Giving everyone the same sales tax break is no loophole Giving only a few special interests with powerful lobbyists big sales tax breaks is a giant loophole Thirty—two states representing almost 90 of the population of the US have no sales tax on food Taxing tourists for food is detrimental to the image they have of Utah possibly even discouraging some retirees from living in Utah The government has increased taxes literally hundreds of times almost never lowering them This may be our last chance fora tax cut The many signatures for Initiative A demonstrates people do not believe the government is serious about tax reduction Strong states don't tax food Strengthen Utah's economy by injecting $100 million extra back into the private sector Vote YES on Initiative A Merrill Cook Chairman The Independent Party of Utah 2026 Beneficial Life Tower Salt Lake City Utah 84111 |
