[Vision2020] Legislative Update III from Rep. Trail Jan 14-19

[Bill London]

Tom-
Again, thanks for writing to V2020 with these issues.
Regarding the grocery tax credit issue, it seems to me that the easiest 
remedy and the fairest would be to eliminate sales tax on all groceries. 
Other states use that remedy.  That simplifies the solution.
BL






----- Original Message ----- 
From: <ttrail at moscow.com>
To: <vision2020 at moscow.com>
Sent: Saturday, January 19, 2008 3:24 PM
Subject: [Vision2020] Legislative Update III from Rep. Trail Jan 14-19


> LEGISLATIVE NEWSLETTER III --JANUARY 14-19,2008
>
> Constituents:
>
> I'd like to talk a bit about a single issue in this newsletter.   This
> issue is the Grocery Tax Credit.   A number of proposals surfaced last 
> year
> in the Legislature.  The majority of Legislators appeared to support some
> approach to reducing the sales tax on groceries but all of the measures
> failed.   There appears to be renewed efforts to pass legislation this
> session to phase out the sales tax on groceries.
>
> Idaho's current Grocery Tax Credit provides a uniform credit of $20 per
> person for eligible non-elderly individuals, which represents the tax
> burden on $333 of food for one year.  Raising the credit amount to $90 per
> non-elderly family member and making it available to lower income
> households, would come close to offsetting the impact of the grocery tax 
> on
> low income families.   This projected cost would be about $29 
> million/year.
> This was close to the Governor's proposal last session.
>
> Unfortunately, some of the lowest income Idahoans do not benefit from the
> current grocery tax credit.   Idaho residents who are not elderly and not
> legally required to file a tax return are not eligible for the Grocery Tax
> Credit, even if they file a return.  For a married coup0le in 2007, the
> income at which they would be required to file is $17,500; those whose 
> income
> fell under this level would not qualify.
>
> The vast majority of families on food stamps do pay the sales tax on
> groceries, but a family who purchases food with its own income is not
> eligible if it receives any food stamp benefit.  At least 70% of Idaho 
> food
> stamp recipeint, as well as many of the remaining 30%, need to supplement
> their food stamps with cash purchases of food to have a basic nutritious
> diet; these purchases are subject to the sales tax.   I will be supporting
> legislation that allows all low income Idahoans to claim their Grocery Tax
> Credit.   There will be much more' debate on this issue coming up in the
> following weeks.
>
> It appears that we may be headed into an economic downturn or even a mild
> recession. I think this is a good time to remind all of some of the
> realities of poverty in the eleven Northern Idaho Counties (data source,
> U.S. Census, Idaho Kids County Report, and the 2006 Idaho Job Gap Report).
>
>  1.  41,136 people live in poverty
>  2.  19 out of every 100 children live in poverty
>  3.  Idaho has the highest percentage (29%) of young adults, ages 18-24,
> living in poverty of any state in the U.S.
>  4.  63% of Idaho 3 and 4 year olds do not attend a preschool program due
> to the lack of availability and affordability, leaving them unprepared to
> enter kindergarten.
>  5.  Low-income parents make kup almost half of Idaho's working
> population.  The parents in these families work for low wages, often
> without the ability to afford health insurance, quality child care and
> early education.
>  6.  In Idaho, a living wage for a family of 3 (single parent/two
> children) is $22.23/hour.  Only 14% of current jobs in Idaho pay this 
> wage.
> A living wage for a family of 4 (2 parents/2 children-1 parent working is
> $20.98 per hour (due to the Earned Income Credit Program, the living wage
> for a family of four is slightly less than that of the family of 3).  Only
> 17% of current jobs in Idaho pay this wage.
>
> There are also some interesting relationships regarding poverty in Idaho.
> These are:
>
>  1.  Drug arrests are up 144% since 1990.
>  2.  The suicide rate is 22 people per 100,000, compared to the national
> suicide rate of 11 people per 100,000.
>  3.  By 2025, 20% of Idaho's population will be over age 65 and Idaho will
> have the greatest number of people over age 85 per capita than any other 
> state.
>  4.  Many of Idaho's elders face isolation due to lack of mobility,
> relationships and adequate resources.
>
> Many state and private agencies are working with Idaho citizens in poverty
> to assist them to meet of challenges of day to day survival.   A number of
> legislative initiatives including the Grocery Tax Credit are being 
> proposed.
>
> That is all for this week.   Please send me your comments, 
> recommendations,
> etc. to
> ttrail at house.idaho.gov to my office in Boise.   My phone is 208-332-1184
>
> Representative
> Tom Trail
>
>
> ---------------------------------------------
> This message was sent by First Step Internet.
>           http://www.fsr.com/
>
>
> =======================================================
> List services made available by First Step Internet,
> serving the communities of the Palouse since 1994.
>               http://www.fsr.net
>          mailto:Vision2020 at moscow.com
> =======================================================
>
>