Tuesday evening, Governor Dirk Kempthorne stood before the Idaho legislature and warned us that, "many of the decisions we will make this year will be difficult. But," he continued, "we should never make any decisions because they’re easy¼or because they’re convenient¼or because they’re popular¼we must make them because they’re right."

It might have been fun to have been in the state legislature back when the economy was flourishing; when both tax cuts and spending increases were simultaneously possible. However, whenever someone has too much fun, it always seems someone else has to pay for it. I entered the State Senate just in time to slash budgets, cut programs, and reduce spending. I firmly believe that tough economic times have made us stronger and healthier. Businesses, families and governments must exercise greater fiscal constraint, implement more efficient monetary policies, and produce more financially sound and responsible organizations. Government was long overdue for a good diet and exercise regimen.

Twenty-three tax reductions in the past four years have helped Idaho trim most of the fat it once carried. To presume that all excess has been eliminated would be naive and it is my job to continue to scrutinize all state expenditures. We must continue to exercise fiscal conservatism. But there is a difference between conservatism and radicalism, just as real as the difference between a healthy diet and self-imposed starvation.

After eliminating $200 million in state spending, Idaho still faces a $160 million shortfall in the current year. And that is with the help of millions in one-time monies that will not be available next year. Unlike the federal government, states must balance their budgets and are not allowed to borrow funds or print their own money to cover their overdrafts. As unpleasant as it may be, the Idaho Constitution permits only one source of revenues: taxation.

The governor has asked the legislature to more than double taxes on cigarettes to equal the national average of 62 cents per pack. (Washington is $1.64, Oregon is $1.28, and Utah is 69.5 cents.) The American Heart Association and the American Lung Association have long endorsed an even higher increase based on studies that reveal higher prices actually deter teenage smoking and reduce public healthcare costs.

Secondly, Governor Kempthorne is proposing a 1 ½ cent increase in sales taxes beginning May 1 of this year through June 30, 2006. This is designed to add $240 million each year to balance the budget. Some claim that sales tax is a "regressive" tax, disproportionately burdening families with lower incomes. Conversely, low-income families have the most to gain from a tax increase, since they are the biggest beneficiaries of government services. Sales taxes are much more difficult for well-to-do individuals to avoid than are income taxes. Sales tax laws do not contain all of the complex loopholes and tax breaks available to those who can afford to utilize them. Sales taxes are also attractive from the standpoint that tourists and other out-of-state visitors contribute to our tax base by paying the tax on their purchases here.

Having said that, I personally feel that a 1 ½ cent increase in our sales tax is too steep. We can do it for less. I will push my colleagues to limit the sales tax increase to ½ or, at the most, 1 cent. If that doesn’t do the trick, additional needs should be funded by a partial rollback of the income tax reduction passed by the legislature two years ago.

I have been told that I risk political suicide if I do not oppose any tax increase. But this is not about me and my political career, it is about doing what is best for the people I represent. I may be politically naive, but I am very good with numbers, and anyone who tells you we can avoid injuring our children’s education, the safety of our citizens, and the stability of our communities without raising revenues has not crunched the numbers.

It is easy to govern in good times, but it takes real statesmen to make difficult decisions. As Winston Churchill stated, "The only guide to a man is his conscience; the only shield to his memory is the rectitude and sincerity of his actions."

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