THE GRAFT TAX
Appendix
January 13, 2003
Table 1
SUMMARY AND VALUE OF BREAKS
AND POLICY FAVORS FOR SPECIAL INTERESTS
| DESCRIPTION | COST PER TAXPAYER |
|---|---|
| Corporate tax breaks and loopholes | $218 |
| Failure of combined-reporting tax | $25 |
| Prison operations | $37 |
| Road construction | $39 |
| Caucus investigation and redistricting legal fees | $1 |
| Farmland use value tax | $65 |
| Sales tax exemptions | $545 |
| Property tax exemptions | $186 |
| State pension increase | $62 |
| Ethanol subsidies | $1 |
| Telephone tax | $16 |
| State employee benefits | $4 |
| TOTAL | $1,199 |
Table 2
PARTIAL LIST OF STATE SALES AND
USE TAX EXEMPTIONS AND
THE ESTIMATED LOSS IN
TAX COLLECTIONS BY THE STATE IN 2000
| ITEM | ANNUAL VALUE |
|---|---|
| Accounting services | $46,000,000 |
| Admissions to educational events and places | $4,700,000 |
| Advertising | $81,000,000 |
| Architectural engineering and surveying services | $53,000,000 |
| Auto and travel clubs | $1,600,000 |
| Beauty and barber services | $16,700,000 |
| Business addressing and mailing services | $8,100,000 |
| Business and fraternal association membership dues | $11,700,000 |
| Business rental payments | $323,000,000 |
| Commercial vessels and barges | $1,800,000 |
| Commissions to real estate brokers | $35,000,000 |
| Computer services | $120,000,000 |
| Construction materials and equipment used to build sports stadiums | $1,500,000 |
| Credit rating and collection services | $5,900,000 |
| Dance studios | $100,000 |
| Dry cleaning services and Laundromats | $2,350,000 |
| Exterminators | $2,200,000 |
| Farm machinery and milk house supplies | $35,100,000 |
| Health and reducing clubs | $6,600,000 |
| Interior designers | $2,700,000 |
| Janitorial services | $18,800,000 |
| Legal services | $78,000,000 |
| Live bands and orchestras | $220,000 |
| Logging equipment | $500,000 |
| Management consulting and public relations services | $49,000,000 |
| Manufacturing machinery and equipment | $240,000,000 |
| Motion picture and television film | $2,800,000 |
| Newspapers, periodicals and shopper guides | $15,600,000 |
| Personnel services | $61,000,000 |
| Semen for livestock breeding | $2,000,000 |
| Value of labor in construction projects | $342,000,000 |
| Vehicles sold to common and contract carriers | $24,000,000 |
| Veterinary services for pets and farm animals | $13,900,000 |
| Waste treatment facilities | $30,000,000 |
