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Ray Zajac, Mantador, N.D., Published February 04 2013

Letter: Sales tax cut great for big oil

North Dakota’s governor and legislators will be reducing taxes in this legislative session. Which are the best taxes to reduce? North Dakota has basically four taxes: income tax, sales tax, property tax and fees and licenses.

I am usually for cutting taxes, but sales tax would be one of the worst taxes to cut. What is nice about sales tax is that the people or companies that spend the most money pay the most tax. Sales tax adjusts itself for inflation. As prices go up, the higher the amount of sales tax paid.

If the sales tax were cut, the big winner would be the oil companies. Oil companies pay an oil extraction tax instead of property taxes. But they do have to pay sales tax on all the materials to drill a well.

If the out-of-state individuals and companies that work in North Dakota pay less sales tax, they have more money to take out of North Dakota. Sending more money out of North Dakota does not stimulate the economy of North Dakota. North Dakotans will have to make up the difference with poor roads, less education and less property tax relief.