TAX ALERT!
	From The Utah Taxpayers Association
	1578 West 1700 South #201, Salt Lake City, Utah 84104 PH 972-8814 FX 973-2324

November 4, 2005
To: Taxpayers in Orem
Re: Proposed Tax Increase

As part of the municipal election on Tuesday November 9, Orem Voters will be asked to pass a 1/10 th cent Arts Tax.

Orem taxpayers have several reasons to vote NO on the Orem Arts Tax.

Utah has more pressing needs than funding the arts with tax dollars.
Despite Utah’s high tax burden, state and local governments struggle to adequately fund essential needs such as transportation, education, and public safety. Spending tax dollars on the arts will not create meaningful economic growth, but spending tax dollars on transportation and education while keeping tax burdens under control will promote economic growth.

Our taxes are already too high. Taxes should be cut, not raised.
Utah ’s state and local tax/fee burden as a percent of personal income is third highest in the nation. Experience throughout the world demonstrates that high tax burdens lead to lower long term economic growth. Instead of raising taxes, state and local governments should be cutting taxes.

To see the Utah Taxpayers Association’s 50-state tax and fee burden report, visit www.utahtaxpayers.org.

Earmarking general tax revenue for specific purposes is bad tax policy.
Government spending needs to be annually prioritized in order to maintain budgetary discipline. Dedicating or “earmarking” general tax revenues for specific purposes places government spending on auto-pilot and reduces elected official’s ability to balance budgets without raising taxes or cutting essential services such as public safety.

Sales taxes hurt low income families and those on fixed incomes.
Low income households spend a higher percentage of their incomes on taxable goods and services. As a percent of personal income, sales taxes harm the poor more than anyone else. Why should the poor be forced to subsidize the arts for other citizens who can afford them?

Passage of the Arts Tax will make Orem’s sales tax higher than its neighbors.
Imposing this new sales tax will put local retail businesses at a disadvantage on large ticket items when compared with shopping centers in neighboring communities. Local retailers may see some of their purchases – which have traditionally been made in Orem – going to retailers in Provo or other neighboring communities which do not have the RAP tax. This could especially have an impact on automobile and major appliance sales.

Vote No on the RAP Tax!