Re: press release

[Bob Hoffmann <escape@alt-escape.com>]

At 12:44 PM 12/10/2002 -0800, Tom Trail wrote:
> >>>> The Idaho Economic  Recovery and Tax Reform Act of 2003 proposes to 
> reduce
> >>>> the sales tax
> >>>> rate from five percent (5%) to four percent (4%), reduces the use 
> tax rate
> >>>> from five percent (5%) to four percent (4%)
> >>>> and repeals certain exemptions in both the sales tax and the income 
> tax....

OK to repeal certain exemptions in the income tax, but....

Sales tax is regressive.  The poor tend to spend 100% of their income, so 
they are paying an extra tax on most of their income.

The wealthy can squirrel away lots of their income in investments, and it 
seems to me that stock, bond, and mutual fund purchases and bank deposits 
are not taxed (although the profits from these can be).  So they can shield 
a much greater part of their income from this sales tax.

Income tax is progressive--Governments provide exemptions for the first X 
thousand dollars, so the poor can duck much of this, while the rich get to 
pay on a greater share of their income.

Me, I'm neither rich nor poor, but I favor progressive taxes (income taxes) 
to regressive taxes (sales taxes).  Let's take care of this on the income 
end, and not on the sales end!

Bob Hoffmann
820 S. Logan St.
Moscow, ID  83843

Tel: 208 883-0642