Xenliad
10-18-2014, 03:02 PM
http://bismarcktribune.com/news/columnists/nick-smith/lawmakers-prepare-to-debate-need-for-income-tax/article_ca61bd96-5634-11e4-b31f-833d1432ea69.html
October 17, 2014 2:36 pm • By Nick Smith
A pair of Republican lawmakers told party backers this week they’re primed to have a debate during next year’s legislative session that the state can make deep cuts to property and income taxes.
Minot Rep. Scott Louser and Bismarck Rep. Rick Becker spoke to nearly 40 party supporters Thursday during a monthly chairman’s luncheon in Bismarck on lowering income taxes.
Louser said he plans to submit a bill that would lower personal income taxes to 0 percent. Corporate income taxes aren’t included in his bill.
He acknowledged that eliminating the tax outright might create difficulties reinstituting it, if ever needed. To address this, he said putting it at 0 percent rather than abolishing it allows it to remain on the books just in case it’s needed in the future.
He dismissed the idea that the tax would have a significant fiscal impact.
“This bill shouldn’t cost anything; it’s (just) less revenue,” Louser said.
Louser said, when discussing the lowering of income taxes, he’s questioned by people about property taxes, which have been the tax most complained about and focused on in recent years. He said, with the state’s strong economy, lawmakers have options available to them that other states don’t.
“I believe both can be done,”said Louser, explaining he believes lowering the personal income tax would provide a level playing field for all residents and the money in people’s pockets would further stimulate the economy once spent.
During the 2013 session, he sponsored House Bill 1182, which called for a two-year suspension of personal income taxes. It failed.
Louser said, over the previous three sessions, the state has been lowering income taxes. Most recently was in 2013 when lawmakers passed Senate Bill 2156, providing $250 million in individual and corporate income tax cuts.
“At some point, we’re working toward 0 percent, and I think we’re at that point now,” Louser said.
The 2012 North Dakota Red Book showed the state as being ranked 34th nationally in per capita personal income tax collections in fiscal year 2011, with the per capita payment being $633. The Red Book is published every two years by the state tax department.
Louser was questioned as to why focus on income taxes and not sales tax.
“The sales tax to me is one that is optional,” Louser said. “(It’s) more of a fair tax.”
Louser, who’s up for re-election next month, said he’d like to see more discussion on income taxes in 2015 if he’s still in office. He said early in the 2013 session he saw little interest due to the focus on property taxes. Near the end of the session, he said several lawmakers told him they’d regretted not taking a deeper look at income taxes.
Becker said he’d personally want to go a step further and eliminate income taxes. Currently, seven states have no income taxes: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Two other states, Tennessee and New Hampshire, have no income taxes except on interest and dividends.
He said, with the Republicans holding two-thirds majorities in both legislative chambers, far more can be done to reduce taxes.
“What we should be seeing from the Legislature is a truly conservative set of policies,” Becker said.
Becker was asked about the impact of having income taxes at 0 percent or eliminated if the state’s oil production took a dive.
He said the state has reached a “new paradigm” in recent years with a heavy reliance on oil tax revenue. The preliminary North Dakota Office of Management and Budget revenue forecast estimates there to be approximately $9.8 billion in oil tax revenues coming in during the 2015-17 biennium.
Becke says he didn’t believe oil revenues would fall sharply anytime in the near future. He said the impact of lost oil revenue would far outweigh that of income taxes no matter what.
“If we lose that, we’re going to scramble,” Becker said. “Either way, we’re going to be up against the wall.”
I live in Becker's district, he's great. He's running for reelection unopposed.
October 17, 2014 2:36 pm • By Nick Smith
A pair of Republican lawmakers told party backers this week they’re primed to have a debate during next year’s legislative session that the state can make deep cuts to property and income taxes.
Minot Rep. Scott Louser and Bismarck Rep. Rick Becker spoke to nearly 40 party supporters Thursday during a monthly chairman’s luncheon in Bismarck on lowering income taxes.
Louser said he plans to submit a bill that would lower personal income taxes to 0 percent. Corporate income taxes aren’t included in his bill.
He acknowledged that eliminating the tax outright might create difficulties reinstituting it, if ever needed. To address this, he said putting it at 0 percent rather than abolishing it allows it to remain on the books just in case it’s needed in the future.
He dismissed the idea that the tax would have a significant fiscal impact.
“This bill shouldn’t cost anything; it’s (just) less revenue,” Louser said.
Louser said, when discussing the lowering of income taxes, he’s questioned by people about property taxes, which have been the tax most complained about and focused on in recent years. He said, with the state’s strong economy, lawmakers have options available to them that other states don’t.
“I believe both can be done,”said Louser, explaining he believes lowering the personal income tax would provide a level playing field for all residents and the money in people’s pockets would further stimulate the economy once spent.
During the 2013 session, he sponsored House Bill 1182, which called for a two-year suspension of personal income taxes. It failed.
Louser said, over the previous three sessions, the state has been lowering income taxes. Most recently was in 2013 when lawmakers passed Senate Bill 2156, providing $250 million in individual and corporate income tax cuts.
“At some point, we’re working toward 0 percent, and I think we’re at that point now,” Louser said.
The 2012 North Dakota Red Book showed the state as being ranked 34th nationally in per capita personal income tax collections in fiscal year 2011, with the per capita payment being $633. The Red Book is published every two years by the state tax department.
Louser was questioned as to why focus on income taxes and not sales tax.
“The sales tax to me is one that is optional,” Louser said. “(It’s) more of a fair tax.”
Louser, who’s up for re-election next month, said he’d like to see more discussion on income taxes in 2015 if he’s still in office. He said early in the 2013 session he saw little interest due to the focus on property taxes. Near the end of the session, he said several lawmakers told him they’d regretted not taking a deeper look at income taxes.
Becker said he’d personally want to go a step further and eliminate income taxes. Currently, seven states have no income taxes: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Two other states, Tennessee and New Hampshire, have no income taxes except on interest and dividends.
He said, with the Republicans holding two-thirds majorities in both legislative chambers, far more can be done to reduce taxes.
“What we should be seeing from the Legislature is a truly conservative set of policies,” Becker said.
Becker was asked about the impact of having income taxes at 0 percent or eliminated if the state’s oil production took a dive.
He said the state has reached a “new paradigm” in recent years with a heavy reliance on oil tax revenue. The preliminary North Dakota Office of Management and Budget revenue forecast estimates there to be approximately $9.8 billion in oil tax revenues coming in during the 2015-17 biennium.
Becke says he didn’t believe oil revenues would fall sharply anytime in the near future. He said the impact of lost oil revenue would far outweigh that of income taxes no matter what.
“If we lose that, we’re going to scramble,” Becker said. “Either way, we’re going to be up against the wall.”
I live in Becker's district, he's great. He's running for reelection unopposed.