Idaho Center for Fiscal Policy: Complex Tax Proposal Would Have Uneven Impacts on Idahoans

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A new proposal in the Idaho Legislature would dramatically shift the way taxes are collected and generate a new revenue source for our neglected roads and bridges. The proposal has several components which in combination mean that taxpayers across the bottom 95% of the distribution will pay more, on average. The proposal is designed to generate $150 million in transportation funding through the sales tax hike, but the other changes generate the same level of revenue as in the past so it won’t provide the state with additional funding to invest in other things, like education. Idaho’s tax system currently asks those with higher-incomes to pay a smaller share of their income in taxes than average people. This “omnibus” tax proposal would increase this difference.

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