What are your thoughts on Sen. Valentine's proposed changes to Sales Tax on Food?

[David Lifferth]

You may have heard about a recent proposal by Senator John Valentine to raise the sales tax on food from 1.75% to 4.75%.  His proposal is revenue neutral so that no additional taxes are raised.  Low income families, including many in our area will then get tax refunds at the end of the year when they do their taxes.

Nobody loves taxes (except apparently those that don’t have to pay it), but I do believe that we must have a “pay as you go” attitude and not leave debt for our children. I am angry about the generational theft that is occurring in Congress where massive debt is being incurred and our children and grandchildren are being left to pay the bill. This is the clearest form of “taxation without representation” that I have ever witnessed.

This is part of a general conservative strategy of “broadening the base” and “reducing loopholes”. In other words “we don’t need more taxes, we need more tax payers.”

Here are some links to read more about the proposal. I don’t know all of the final details, and some of the details have probably not been hammered out yet.

• http://www.abc4.com/content/news/top_stories/story/Utah-lawmaker-pr...
• http://m.sltrib.com/sltrib/mobile[phone]/tax-income-credit-s...

As is always the case, be aware of the agenda of the reporting and it is clear that none of these reports are neutral on the subject.

However, as part of my decision making process, I would like to get feedback from you and my other constituents. I will open a discussion thread on this subject and I would love to hear your thoughts
Please take the survey on my web site DavidLifferth.com so I can gauge the sentiment for this proposal.
Also the result of the last survey, “What method did voters in our area choose to cast their vote?” presented below.  It does appear that the new “Vote by mail” option is becoming more popular with fully one-third of survey participants choosing that option.

Here is a link to my blog on this subject: http://davidlifferth.ning.com/profiles/blogs/what-method-did-voters...

[David Lifferth]

My purpose in sending this and other emails is to have a dialogue with those that I am charged with representing.  I have used emails, blogs, social media, etc to include my constituents in an ongoing dialogue so that I can best represent them at the state legislature.  I take the responsibility and title of “Representative” very seriously.

 

I can tell from the responses that I have received that there is much that is mis-understood about Senator Valentine's proposal. While I don't feel the responsibility to defend his proposal, I should clarify any misunderstandings.

 

It is my understanding that his proposal is to actually REDUCE taxes on the current tax payers such as you and me. Our taxes would decrease in other areas such as property and/or income taxes. The difference would be made up by increasing the sales tax on food so that some people who are not currently paying some of the taxes that you and I are would have to at least pay the sales tax on food. People that are not currently paying the same property or income taxes would have a tax increase by paying sales taxes on food. This is what is meant by 'broadening the base' without the state collecting more in taxes.

 

Since we have not spoken before, you may not have heard my rants about how government is never able to spend my money any smarter than I can. Every dollar that Government taxes and spends reduces the freedom and liberty that I have to spend that money as I choose. It is easy to document that government is corrupt and is extremely wasteful and inefficient in how it spends our money.

You can expect for me to do everything that I can with my votes at the state legislature to reduce the burden on tax payers and remove burdensome regulations.

[David Lifferth]

This email and blog has generated a lot of responses. I have asked for permissions to post email exchanges here. In some cases I have been given approval and others no.  I will post them here as I receive permission.

[David Lifferth]

<beep> NO ... ON ANY TAX INCREASE!!!

[paraphrased because approval not given to post]

[David Lifferth]

If I am reading these articles correctly, the people most likely to have their food bought for them (food stamps) by us tax payers, are then going to receive tax credits paid for by us tax payers, in order to off-set the "burden" of this sales tax which they are not paying.  If that is correct, then this is a terribly stupid proposal that does not broaden the base at all.  It pretends to when in actuality it is just heaping more burden on the middle income earners both coming and going.

Sent from my iPhone

[approval given to post, but not to include name]

[David Lifferth]

My reponse:

[name withheld by request],

Good question. It is my understanding that food stamp recipients do not pay taxes on the food that they buy with food stamps. So this would not change much for them. They would not pay new food stamps and they would not get a tax refund when they file their taxes.

If you are a renter it probably wouldn't change much for you. You don't pay property taxes, but a portion of your rent should be allocated by your landlord to pay for the property taxes that they owe. In theory, you should pay lower rent to offset the reduced property taxes that your landlord will not have to pay. If this law passes (and there is no reason to think that it will) then you should negotiate a new lower monthly rental rate.

If you have a job and are paying income taxes, then that may should go go down to offset the increases in food taxes.

As I said in the previous email, I think that the purpose is this proposed law is to get more people to pay taxes that they have been able to dodge so that people that are currently paying taxes should in balance pay less.

[Marshall Bare]

Where can we read more about his bill? It seems to me that once an increase in taxes is allowed somewhere it doesn't get reduced, even when promised. The promise to reduce taxes in other places - how likely is this to actually happen? Then we are stuck with higher taxes all around because we accepted it somewhere. I think the real answer is to keep hammering away at the waste and inefficiencies of the current government, not find new ways to bring more taxes in. If it truly will be an effective long term reduction in taxes after a true quality analysis is put together, then fine, but I am skeptical.

[David Lifferth]

@Marshall, I will pose more links as I find them. This is still early in the process and I am starting this discussion with constituents as early as possible.

[David Lifferth]

Dave,

To be honest, after this election, I don't think it matters much what I say with regard to the proposed increase in sales tax on food. I am saddened that so many in this country seem to want so much for free.

My feeling is please don't tax me any more. Please find a way to reduce taxes - for everyone. Teach self-reliance. Spend less!!!!!! That's what I have to do.

Thanks,

[Name withheld by request]

[David Lifferth]

Dave,

This is a regressive tax. If you vote yes on this you can forget my wife's and my support. I do not mind paying a tax as a percentage. One that is an equal percentage with any other wage earners. I will be watching you more closely after reading your email. It seems as if you are trying to put a positive spin on a regressive tax.

 

Second, do not ask me for more money until you show me how responsible you will be with our money. This is the Republican way, and you say you are a Republican.

 

[Name withheld by request]

[David Lifferth]

This is Thomas. Yes reprint it as you wish. The problems, is the other taxes will never go away. or be decreased and with the rising inflation it will hurt us the tax payer and it won't widen the base. I won't even mention the taxes coming our way from Obama. Cut spending, go after our land from the Feds, develop/extract resources and make money. Oppose this tax increase, cut spending.

 

Thomas.