Debate: ‘Increase our spending,’ ‘Reach into pockets,’ ‘If it’s owed, they should pay it’

Comments from the House Revenue & Taxation Committee’s debate on HB 581, the “nexus” bill on sales taxes:

Rep. Greg Chaney , R-Caldwell, said he likes the bill, but not unless it’s coupled with a tax cut. “I don’t see it as a tax increase, I see it as an enforcement bill,” he said. “There’s a lot I really like about these concepts. My favorite thing is that it brings economic stimulus to the state by giving Idaho companies equal footing. … It could potentially provide us with the funds we need for tax relief.” Chaney said he would only support it coupled with a tax cut, “Because we have no assurances whatsoever that by increasing our collections, we will do anything whatsoever but increase our spending. We have no assurances that this will have any economic benefit.”

Rep. Stephen Hartgen , R-Twin Falls, said he can’t support the bill. “I think there are a lot of problems that have been raised,” he said. “It reaches into the pockets of consumers and grabs additional tax revenue, and I don’t see how that benefits the economy or the consumer directly. This is an artful way of getting around the fact that online sales at the moment are de facto difficult to collect. This bill would make it a lot easier for the state to collect them. I’m also concerned about the use of a database for that purpose.”

Rep. Clark Kauffman , R-Filer, spoke in support of the bill. “We keep talking about raising taxes, but we’re just collecting taxes that are owed – we need to remember that,” said Kauffman, a co-sponsor of the bill. “I’m not opposed to some of this money going to tax relief, but we don’t know how much that will be. In a year or two I think we will, and then I think we can address that. It was said that we’re making people pay taxes that they don’t pay. So are we encouraging people not to pay any of their taxes? If it’s owed, they should pay it. I think it’s a fairness to our businesses and our communities, a business-friendly thing.”