TaxAnalysts.org HB40 Press Release

From: TaxAnalysts.org

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Before H. 40's passage the Idaho Center for Fiscal Policy had issued an analysis in January arguing that while the bill would cost the state between $240 million and $258 million, Idaho's top 20 percent of households would receive 67 percent of the income tax cut's benefits and "most Idaho households would not see a meaningful change in their tax bill from this reduction." It also issued a February analysis saying the bill would make the state tax system more regressive. 

May Roberts, policy analyst with the center, told Tax Notes March 7 that the group retains its concerns about H. 40's income tax reduction, including that it wouldn't address regressivity within the state tax system. 

“Broad income tax cuts do not address this issue and could further it," Roberts said. 

Roberts said Idaho could address tax regressivity by making its child tax credit refundable, creating a state-level earned income tax credit, and enacting H. 231, which would increase the state's grocery tax credit. The House and the Senate both approved H. 231 as of March 7, so its fate is now up to the governor. 

Reach out to Emily Hollingsworth at emily.hollingsworth@taxanalysts.org or via encrypted message on Signal at EmilyHollingsworth.29.