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News
Highlights
Officials walk fine line between fighting to keep HAFB open and planning for possible closure (Standard-Examiner).
Republicans find $2 million for medications and treatment for mentally ill (Salt Lake Tribune).
Legacy Highway foes are pushing “Smart Growth Alternative," which ignores decades of local planning (Deseret Morning News).
No Child Left Behind legislation depends on state/federal negotiations (Morning News).
Paul Van Dam and Craig Axford announce bids for Democratic Party chair (Morning News). |
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Quote of the Day
"I love hunting. But this is silly. These deer have got nowhere to run. It's like shooting fish in a barrel. This is all about money, about big bucks.”
-- Rep. Curt Oda, commenting on SB187, which would allow sale of a few hunting permits on Antelope Island. Oda and Rep. Sheryl Allen, both from Davis County, have jokingly suggested fox hunting at Snow Canyon State Park and a safari hunt at Hogle Zoo in retaliation to the Antelope Island hunt (Tribune).
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Tuesday Buzz
Compiled and
Written by LaVarr Webb |
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Calling All Bloggers
Bryan Schott, news director at KCPW Radio (1010 AM and 88.3 & 105.3 FM), e-mailed Utah Policy Daily to help spread the word that he wants to do a series of features on Utah bloggers. He wants any bloggers out there to e-mail him at bschott@kcpw.org so he can chat with you about your experiences. Please contact him if you’re a blogger.
Van Dam Will Run for State Party Chair
Many Democratic insiders are pleased that former Utah Attorney General Paul Van Dam will run for state party chair. The only other announced candidate so far, Craig Axford, is far to the left of mainstream Utahns, worrying Democrats who want to project a more moderate image.
In a press release announcing his candidacy, Van Dam said, “With the recent announcement that Donald Dunn will not seek a second term as chair it is essential that Utah Democrats select an individual for the chair position who has the experience and vision needed to build bridges within our own party and ensure a bright future by serving as a clear voice of reason and moderation in Utah politics.” Van Dam has had a wide range of political and government experience. Van Dam can be contacted through Marcie West at (801) 856-4810, or at e-mail address: marciesmith_west@hotmail.com.
National Politics
Newt for President?
"Former House Speaker Newt Gingrich appeared at the Conservative Political Action conference in Washington on Saturday (Feb. 26) and by the time he left there was little doubt among the 4,000 attendees that he was running for president in 2008. Mr. Gingrich pushed just about every conservative hot button in a hard-charging 25-minute speech. He called for changing U.S. law so illegal aliens can be deported within 72 hours of their arrest, with the courts being prohibited from reviewing such deportations. ... Afterwards, audience members were convinced they had seen an early version of Mr. Gingrich's presidential stump speech."
-- John Fund, Wall Street Journal
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CU Tax Break is Unjustified
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While lobbyists for the big credit unions like to frame the credit union tax subsidy issue as a fight between banks and credit unions, more and more public policy groups are identifying the true essence of the issue: Exempting big credit unions from taxation is simply bad tax policy that is eroding the nation’s tax base.
The latest organization to make such a finding is the conservative Tax Foundation, which has monitored tax policy at the federal, state and local levels since 1937. Best known for its annual calculation of Tax Freedom Day., the Tax Foundation is a nonprofit, nonpartisan 501(c)(3) organization based in Washington, D.C.
The Foundation’s findings validate the action by the Utah Legislature this year in passing HJR1, which calls on Congress to look at the credit union tax subsidy and differentiate between the big credit unions and traditional credit unions. The Tax Foundation study also mirrors the position of Utah’s own tax watchdog, the Utah Taxpayers Association (click on “special reports”), which has published papers and issued press releases challenging the credit union tax exemption.
Following is a press release from the Tax Foundation: (View full study online)
Study Calls Credit Union Tax Exemption an Unjustified $31.3 Billion Tax Break
WASHINGTON, DC Feb. 28, 2005 -- A new study from the Tax Foundation examines the federal income tax exemption enjoyed by credit unions, finding it to be a large, unjustified loss to the Treasury: $31.3 billion over the 10-year period 2004-2013.
The study is, "Competitive Advantage: A Study of the Federal Tax Exemption for Credit Unions" by John A. Tatom, Ph.D., Adjunct Scholar at the Tax Foundation and Adjunct Professor in the Department of Economics at DePaul University.
The Credit Union Tax Exemption in a Time of High Deficits
"The U.S. corporate tax rate is one of the highest in the world, and it could be lowered to good effect if some unjustified exemptions were eliminated," said Scott Hodge, President of the Tax Foundation.
"Credit unions were granted a tax exemption almost 70 years ago so that they could serve low-income people who had little access to financial services," Hodge pointed out. "Now credit unions are growing by leaps and bounds, serving middle- and high-income people. Why should the exemption continue?"
The Diminishing Legal Restrictions on Credit Union Membership and Lending Practices
Prof. Tatom’s review of the tax exemption’s history found that the original legal "field of membership" restrictions on credit unions were designed to limit their ability to compete with taxpaying financial firms. By strictly defining who could be a depositor and borrower at a credit union, Congress intended credit unions to use their tax advantage to serve low-income people.
Over time credit unions have avoided most of the restrictions, and as a result they have competed directly and successfully with other financial institutions in many markets with a major cost advantage, the tax exemption. As a result, credit unions have rapidly consolidated, merged and broadened their geographic markets, all the while maintaining their tax exemptions.
Do Credit Unions Turn Their Tax Savings Into Service for Low-Income People?
Despite the original mission of credit unions to serve low-income people, Tatom finds no solid evidence that credit unions have done so. In fact, most credit unions have an occupational bond that requires members to be employed, often in industries with relatively high-wage jobs.
Conclusion: Repeal the Exemption
Tatom concludes that the principal justification for the tax exemption is just that it already exists. "Under current law, as it is being enforced, there is no good policy argument based on equity or efficiency for maintaining the tax exemption," he concludes.
(View full study online)
(Sponsored by Council for Sound Tax Policy)
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Tuesday
March 1, 2005
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Please submit calendar items to Daily@UtahPolicy.com
- Mar 2: Second supplemental appropriations bill available to legislators by calendared floor time and final action taken by noon.
- Mar 2: 2005 legislative session ends.
- Mar 5: Libertarian Party Utah County Meeting, 10 am to 12 pm, Golden Corral, 225 West University Pkwy, Orem.
- Mar 4: Box Elder County Lincoln Day Dinner with Lt. Governor, Gary Herbert 6 pm, Maddox Lodge.
- Mar 12: Davis County Democrats “No Host” breakfast/monthly food drive, 8:30 am, Grannie Annie’s restaurant, 286 N 400 W, Kaysville. The public is invited and everyone is asked to bring a non-perishable food item to benefit the food banks in Davis County.
- Mar 22: Last day governor may sign or veto bills.
- Mar 22: Green Party of Utah Roots Local Monthly Meeting, 12 pm, Sprague Library, 1100 E 2100 S.
- Mar 24: Libertarian Party Salt Lake County Meeting, 7 pm, Bohemian Brewery & Grill, 94 E 7200 South, Midvale.
- Mar 26: Republican Women Federation Fundraiser and Auction, "Heroes of the Heart," 5:30 pm, McKay Events Center, UVSC, Provo. Speakers: First Lady Mary Kaye Huntsman and Sen. Orrin Hatch. For more information, please contact Suzanne Merrill - 801-796-0831.
- Apr 2: Libertarian Party Utah County Meeting, 10 am to 12 pm, Golden Corral, 225 West University Pkwy, Orem.
- Apr 9: Davis County Democratic Party Organizing Convention, 11 am, Farmington Jr. High School,150 S. 200 West, Farmington.
- Apr 13: Garfield County Republican Convention, 4 pm Teenage Republicans Convention, 6 pm County Convention and Dinner featuring former Gov. Olene Walker, Escalante High School.
- Apr 19: Tooele County Republican Convention, 7 pm, Tooele Health Department, 151 N Main St.
- Apr 23: Davis County Convention, Davis County Conference Center
- Apr 23: Morgan County Convention
- Apr 23: Washington County Convention, Gardner Conference Center
- Apr 26: Green Party of Utah Roots Local Monthly Meeting, 12 pm, Sprague Library, 1100 E 2100 S.
- Apr 26: Salt Lake County Republican Party Lincoln Club Awards Banquet, Little America Hotel.
- Apr 28: Constitution Party National Executive Meeting, Best Western Garden Inn, 154 West 600 South, Salt Lake City. Open to the public for observation - seating very limited.
- Apr 30: Libertarian Party of Utah Convention and Annual Memorial/Awards Dinner.
- Apr 30: Salt Lake County Republican Convention
- Apr 30: Utah County Republican Party Organizing Convention, 7 pm, Canyon View Junior High, 950 N 700 E, Orem.
- May 1: Last day a veto-override session may begin.
- May 2: Normal effective date for bills.
- May 2: First day to file bills for the 2006 General Session.
- May 14: Davis County Democrats “No Host” breakfast/monthly food drive, 8:30 am, Grannie Annie’s restaurant, 286 N 400 W, Kaysville. The public is invited and everyone is asked to bring a non-perishable food item to benefit the food banks in Davis County.
- May 21: Republican Central Committee Meeting, 9 am, Gardner Center, St. George.
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