The biggest drivers of the inequality in Idaho are the sales and property taxes. In every bracket of income measured by the Institute’s report, the amount that families paid in state and excise taxes went down as their total income increased. The lowest-earning 20 percent spent twice as much of their annual income on property taxes as the highest 20 percent, with an average of 3.3 percent paid on their property compared to 1.6 percent.
ITEP Work in Action
Advocates and policymakers at the state and federal levels rely on ITEP’s analytic capabilities to inform their debates on proposed tax policy changes. In any given year, ITEP fields requests for analyses of policies in 25 or more states. ITEP also works with national partners to provide analyses of federal tax policy proposals. This section highlights reports that use ITEP analyses to make a compelling case for progressive tax reforms.
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ITEP Work in Action November 3, 2018 Idaho Press: Economic Study Finds That Poor Idahoans Pay More State and Local Taxes Than Rich Ones
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ITEP Work in Action October 22, 2018 Idaho Statesman: Poor Idahoans Pay Largest Share of Taxes, Study Finds
Low-income Idahoans were hit hardest by property and sales taxes, ITEP reported. The lowest-earning segment spent 3.3 percent of income on property tax and 6 percent of income on sales and excise taxes (the latter are sometimes known as “sin taxes”).
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ITEP Work in Action October 20, 2018 KTVB: Idaho Tax Analysis
Study finds lower income Idahoans paying higher tax rates than those with higher incomes.
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ITEP Work in Action May 11, 2018 Idaho Center for Fiscal Policy: Idaho Primary Election Fiscal Policy Guide
This guide provides a brief summary of proposed tax changes put forth by the candidates. Estimates of the distributional impact on Idaho taxpayers and state revenue and provided by the Idaho Center for Fiscal Policy.
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ITEP Work in Action March 21, 2018 Idaho Center for Fiscal Policy: Considerations on House Bill 675
A proposal before the Legislature seeks to amend the child tax credit that was created through recent legislation passed by both chambers and signed by the Governor. This analysis presents… -
ITEP Work in Action February 20, 2018 Idaho Center for Fiscal Policy: Additional Analysis: Impacts of House Bill 463 Including the Pass-Through Deduction (199A) Provision
House Bill 463 would make substantial changes to Idaho’s tax code, in part as a response to recent federal tax cuts. The legislation would also cut Idaho’s state income tax rates for households and corporations, changing significantly the way the income tax load is carried by residents. The proposal also includes a nonrefundable state child tax credit, although this does not offset the tax increases for some Idaho families from full conformity.
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ITEP Work in Action February 16, 2018 Idaho Center for Fiscal Policy: Exploring Working Family Tax Credit Options in Idaho
Idahoans believe that everyone should pay their fair share. But the passage of the federal Tax Cuts and Jobs Act in December 2017 raised concerns about potential negative impacts on Idaho families with children. If Idaho chooses to update its tax code to align fully with the federal changes (a policy choice called ‘conformity’), an estimated 66 percent of Idaho families with 1 to 2 dependents will see a state tax increase and 80 percent of Idaho families with 3 or more dependents will see a state tax increase. To mitigate these negative impacts, Idaho lawmakers are considering the creation of state tax credits for working families.
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ITEP Work in Action February 6, 2018 Idaho Center for Fiscal Policy: Analysis of House Bill 463
One motivation for reducing taxes this year is to offset the increase in revenue that conformity – aligning our state tax code with recent federal changes – will bring. If Idaho chooses to conform, the state will collect additional revenue in the range of $82 million to $97.4 million. This means that some Idahoans – particularly those with multiple children – will pay more in state taxes.
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ITEP Work in Action January 30, 2017 Idaho Center for Fiscal Policy: House Bill 67
The Idaho Legislature is considering a proposal that would cut top income tax and corporate tax rates. The bill will also eliminate the income tax on the first $750 of… -
ITEP Work in Action January 29, 2016 Idaho Center for Fiscal Policy: Analysis and Considerations Related to House Bill 380
“Idaho households with incomes between $41,000 and $64,000 a year would see a $23 decrease in their tax liability, on average. The top 1% – those with incomes of $444,000… -
ITEP Work in Action December 18, 2015 Idaho Center for Fiscal Policy: A Summary of Four Proposals from the Legislature’s Tax Working Group
Idaho has a graduated personal income tax, with rates increasing with household income. This has a balancing effect on the sales and property taxes,which generally cost middle and lower-earning… -
ITEP Work in Action March 27, 2015 Idaho Center for Fiscal Policy: A Complex End-of Session Proposal: Notes on House Bill 311
A new proposal in the Idaho Legislature would dramatically shift the way taxes are collected and generate a new revenue source for roads and bridges. The proposal has several components… -
ITEP Work in Action February 23, 2015 Idaho Center for Fiscal Policy: Complex Tax Proposal Would Have Uneven Impacts on Idahoans
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…