Idaho Center for Fiscal Policy: Idaho’s Recent String of Income Tax Cuts Jeopardizes Investments in Public Services

Every year, Idaho tax dollars are spent to ensure families receive a good education, live in safe communities, experience good health, and drive on safe roads. However, over the past four years, lawmakers have passed deep and costly tax cuts and reforms. These cuts were made in response to temporary budget surpluses that were largely driven by federal pandemic relief, but they have long term consequences. The changes to Idaho’s tax code —which are permanent and tilted toward wealthy households and corporations — weaken state revenues by growing amounts over time, limiting the state’s ability to maintain support for schools and other vital public services. The changes also made the state’s tax system more regressive, disproportionately burdening Idaho households with the lowest incomes.

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