Sales tax impact seems unclear
By Doug Nash
CM the Emerald
In higher education circles, the only thing clear
about the proposed 4 percent sales tax is that its im
pact on students is unclear.
Economists, state government officials and stu
dent organizations all agree that data is lacking in
terms of the legislation's effects on the campus
population.
Indeed, Robert Smith, University economics pro
fessor, says data is not only nonexistent, but impossi
ble to collect.
"It is a very difficult job," he says. "You can't
gather data on that. All you can do is make a
prediction."
The reason for this. Smith continues, lies in the
unpredictability of the future tax structure. Without
knowing what the sales tax will look like in its final,
voter-approved form, collecting data on its
demographic effects is an impossible task, he says.
"You can make a sales tax be as regressive as you
want and you can also make it progressive. You really
have to know what the tax structure will be," before
conducting impact studies, he says.
Ross Anthony, economics Professor, agrees the
lack of concrete data creates some difficulty in mak
ing predictions, but believes some overall general
conclusions can be reached.
"I think it's going to affect students in a number
of ways," Anthony says. "Clearly they will be paying
sales taxes that they wouldn't have otherwise paid."
Anthony notes that the 35 percent property tax
relief plan will only help students who rent
apartments.
"I think students will end up paying more than
they have in the past," he says.
But Anthony says the new tax package could also
provide a better method of funding higher educa
tion. While the present plan seems to "vacillate" on
the success of Oregon's timber industry, a sales tax
might not be so dependent on business interests, he
says.
"What I hope happens is that the University will
have a more stable funding base."
ASUO Pres. Mary Hotchkiss shares Anthony's
belief that the sales tax is "another thing students
will have to pay," but is not at all convinced that it
will provide a better funding base for higher
education.
"It would be nice if this money were channelled
into higher education. But I'm not inclined to be
jubilant yet," she says.
To the college students' lobbying arm in Salem,
(mrrjld photo
Ross Anthony, economics professor, says the sales
tax will affect students.
even Hotchkiss' reserved opinion is premature.
“We're going to have to sort of plow through the
bill to find out what they've exempted from the sales
tax," says Sherry Oeser of the Oregon Student Lob
by. "Because it has such a tremendous impact on the
way universities are funded, I think it's an issue the
OSL will take a stand on."
Oeser says her organization will try to predict the
proposed tax's impact on students. But defining
students as a demographic group is easier said than
done, according to Donald Johnson, associate direc
tor of the Bureau of Governmental Research.
"The student population is very diverse,"
Johnson says. "Some of them are going to get hurt
and some of them aren't going to feel it at all."
It seems those wishing to gather information on
the sales tax's financial effect on students may have
to wait until they have already been affected,
Johnson says.
"I'm afraid you've picked a very interesting topic
to which there are no answers."
IFC OKs Neuroscience program goals
The Incidental Fee Committee
heard a preliminary proposal
regarding a computer system for
the ASUO, approved the goals of a
new program, moved on four
money-related requests and refus
ed to make a motion on another
request for funds Wednesday
night.
ASUO representative Bill
Hallmark introduced a plan for
placing a computer system in the
ASUO executive suite. The plan
contained a purchase cost
estimate of $5,800, but excluded
maintenance cost estimates or
proposed future savings. The
committee asked Hallmark to
return at a later meeting with all
pertinent information.
Students in Neuroscience, a
recently recognized ASUO pro
gram, presented its program goals
in hopes of attaining funding for
the current year. The group did
not present a budget for this year
because of a misunderstanding
last year according to Chuck
Black, spokesperson for the
group.
The committee struck a clause
from the goals that requested
money tor social affairs, then mov
ed to accept the goals and told
Black to return with a budget
request.
Hallmark also requested moving
$3,004.00 in existing ASUO ac
counts into the ASUO winter sym
posium account, a reserve ac
count. The committee complied.
Money cannot be withdrawn from
a reserve account without IFC
approval.
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