The Idaho Legislature is considering a proposal that would cut income tax, corporate tax, and sales tax rates as well as eliminate the grocery tax credit. Under the proposal, most tax benefits would go to households with an annual income above $103,000. To mitigate the negative impact on households whose taxes are increased by eliminating the grocery credit and who do not benefit from the income and corporate tax rate reductions, the bill includes a reduction in Idaho’s sales tax. However, the overall impact of these provisions together are very small tax cuts for Idahoans earning up to $66,000 and very large cuts for Idahoans earning $103,000 and up.
Read the full report here: Analysis and Considerations Related to House Bill 199