Saturday, August 23, 2025
71.0°F

End the tax increase shell game

by William Miles
| April 9, 2011 9:00 PM

A shell game is defined as a fraud or deception perpetrated by shifting conspicuous things to hide something else.Hello, to my fellow Idahoans. We have been duped, suckered, bamboozled, taken for a ride, and deceived in order for the wealthy elite to perpetrate fraud openly and defiantly.

A political Ponzi scheme was set in motion in the summer of 2006 that will forever change the financial landscape of Idaho at the expense of lower class, middle class, and small business owners for the financial benefit of the wealthy elite. The game consisted of the governor (Risch) and legislators telling us that the state's revenues would be "adequate" to shift the funding of public school financing from property taxes and taxes to just taxes. "Property Tax Relief" ... Hearing this we all shouted with joy and rejoiced, unbeknownst of the severe consequences and underlying deceit beset upon us. Later, we find out that this plan only works for the Risch (Rich) and his wealthy elitist group. First, we should have listened to that little gut instinct that told us not to place all of our eggs in one basket (sole funding of education from sales taxes), for as history tends to repeat itself, our basket relied on a vibrant and stable economy. History has also taught us that our economy would rise and fall again, and now we find our state short another $200 million worth of eggs.

Second, in order for this plan to work you tell the people, Property Tax Relief is ... of the people, by the people and of course ... for the people. This 2006 plan (shell game) will take the Maintenance and Operation funding out of public education and we will call it Property Tax Relief, while replacing it with a insignificant 1 percent sales tax increase, for an overall 6 percent sales tax rate, calling that increase insignificant.Next, it is important that NO "trusted source of news and information" media report the true and factual impact of this plan (shell game), which of course most likely wouldn't occur since these so-called media sources endorse, support, and fund Risch and his wealthy elite!

Case in point for 2006. (Remember this relief is every year after 2005)Case 1- a typical home of the lower class, middle class, or small business owner:

$200,000 value, Property Tax Relief of $260$200,000 value, Sales Tax increase of $350 = Net Increase of $90

Case 2- a non-typical home of the wealthy elite, upper class$1,000,000 value, Property Tax Relief of $2,000

$1,000,000 value, Sales Tax increase of $750 = Net Decrease of $1250

Case 3- a very large property owner (or multiple properties) $100,000,000 value, Property Tax Relief of $200,000

$100,000,000 value, Sales Tax increase of $2,000 = Net Decrease of $198,000Now compare this to increase in sales tax dollars generated by the insignificant 1 percent increase. The taxes paid as mentioned previously are calculated over a seven year average of buying groceries, washers, dryers, televisions, others miscellaneous phone taxes, utility taxes, and vehicles.

So for most of us that received $260 property tax relief, we then paid $350 more in total sales tax and were not able to write off the property tax amount from our federal tax return (another $39 at the 15 percent tax bracket), so our shell game relief discloses $260 less only to pay $389 more, or a net increase of 50 percent more in taxes!Finally, the fraud or deception perpetrated by shifting conspicuous things to hide something else becomes abundantly apparent. The so-called insignificant 1 percent sales tax increase actually INCREASED TAXES MORE to the lower class, middle class, and small business owner, so their so-called Property Tax Relief is a NET TAX INCREASE. While the opposite occurs for the Risch and wealthy elite as their Property Tax Relief actually vastly exceeds their 1 percent sales tax increase for NET TAX DECREASE.

It must be noted that in Case 3 listed above - which is an actual Kootenai County case - in 5 short years, Risch made this particular multi-millionaire another cool $1 million. Remember the media has been told not to disclose the top aggregate property holders (value amount and M & O savings) to the general taxpaying public, especially not the 500 statewide and 50 countywide (Kootenai County). Oops, that's where the $200 million egg shortfall is!

So as Risch promised (fraud), he shifted the tax burden (shifted a conspicuous thing) to the lower class, middle class, and small business owner with a TAX INCREASE, and he (hid something else) delivered Property Tax Relief for the wealthiest Idahoans (top 15 percent) with enormous TAX DECREASES.The only reasonable, knowledgeable, and prudent decision to make, would be to have Governor Otter and the legislature conduct a special one day session (as then Governor Risch did) and effective immediately (1-1-2011), reinstate the 3 percent Maintenance and Operations of public school funding back to property taxes and immediately remove the 1 percent sales tax increase from 6 percent to 5 percent.

The next step would be to ask Governor Risch, now Senator Risch (richly rewarded) to just step down and resign, no questions asked.Most Idahoans are in a budget survival mode and we don't mind sharing the burden of funding public education, but when we are forced to carry the burden in such a fraudulent and deceptive manner, we must stand up, we must voice our outrage, and we must have just action. I might just speak for the 85 percent of us Idahoans (lower class, the middle class, and the small business owners), but WE are "the people."

William Miles is a Hayden resident