Gil Iker can hammer nails at my house. He hits ‘em right on the head.
Right-wing predators in the Utah Legislature are again on the prowl to restore the most regressive tax of all — the sales tax on food, which hits poor people hard but is little noticed by the rich.
A fairer, smarter way to replenish Utah’s recession-impacted bank balance is to increase our severance tax on extractive industries. The theory of severance taxes is that since a state’s mineral wealth is owned by all its citizens, mining companies should pay us for it. Especially since the wealth of metallic ores, oil, gas, coal, gravel and rock is irreplaceable.
Severance taxes are a small percentage of the selling price of the extracted minerals. Utah’s rate is low, and for coal, it’s free — we give coal away untaxed. In 2006, neighbor states Wyoming and New Mexico collected severance taxes of $683 million and $588 million; Utah collected $50 million. Is it a coincidence that our legislators can legally accept unlimited campaign contributions from corporations? Utahns desperately need an ethics law with teeth, but our legislators will never pass one.
We’re in a recession and Utah needs money to operate. The corporations turn a profit on what they sell. Poor people need to eat.
Gil Iker
Salt Lake City