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Don't be reckless with taxes

| October 15, 2008 12:00 AM

Dear Editor,

We have all been hearing a lot about tax cuts from our local legislative candidates as they discuss what they have to offer the citizens of Sanders County. I think it is very important for folks to understand the consequences to local health care and local government if taxes are cut indiscriminately.

Montana hospitals are supported by a hospital utilization fee enacted in 2003 when state hospitals were in deep financial trouble with a $60 million payments/costs gap. This is revenue that comes from federal matching funds and is used for Medicaid payments to hospitals. This “bed tax” is what keeps many hospitals in the black and available to local citizens. Without it, we would probably lose our local health care facilities.

When I hear State Senate candidate Hinkle talk about rejecting any federal funding that requires a state match, I wonder if he really understands the consequences to county residents who would be forced to go to Missoula for health care. School lunch programs would also disappear and senior citizens on fixed incomes would suffer.

I believe Mr. Hinkle means well but is naive regarding the complexities of government and our tax structure. At the legislative forum in Plains, Greg said he would fund the Justice department, law enforcement and the courts and “everything else will be on the table”. If we don’t fund our schools and programs that support our children, we certainly will need more law enforcement and corrections facilities to deal with the result.

Pat Ingraham and Greg Hinkle both support eliminating the current 3 percent business equipment tax. Well, most of this tax cut would go to the largest corporations in the state and local small businesses would get a pittance. The worst of it is that local homeowners would get stuck with higher property taxes to support schools, fire districts and municipal services. I think its time for homeowners to get a tax break instead of having huge, out-of-state corporations walking off with millions of dollars in tax cuts while homeowners and small businesses pay higher taxes.

I hope our candidates will educate themselves regarding the complexity of out tax system and not just make reckless statements about tax changes that may sound good at the moment, but will hurt us all in the long run.

Dave Lyman

Heron