TOO SOON TO CUT STATE TAX RATES

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Idaho Mountain Express editorial:  After helping wield the axe that slashed Idaho’s budget last year and left schools and human services hemorrhaging from the blows, Gov. Butch Otter is calling for the state to reduce individual and corporate taxes by up to $45 million.

He’s been joined by House Majority Leader Mike Moyle, R-Star, and Revenue and Taxation Committee Chair Dennis Lake, R-Blackfoot, who’re calling for reduced tax rates that would benefit a few individuals and businesses to the tune of $35 million—money the state can ill afford to give up.

Recent upticks in state revenues have emboldened the tax cutters. They’re operating on the assumption that lowering taxes is always good and always leads to greater investment and economic expansion and ultimately higher tax receipts because of improved economic activity. They claim that Idaho’s taxes are too high compared to other states and cripple its ability to attract new businesses and create new jobs.

What if they’re wrong?

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