As Idahoans, we are proud to pay our fair share to keep our communities strong. But for too long, the Republican supermajority has pushed an upside-down tax code that takes advantage of working families while heaping increasing benefits on the richest few. GOP policies ask more of regular Idahoans while deeply cutting revenue, making it harder to deliver the quality public schools, emergency response, and safe roads we rely on.

House Bill 40, introduced by House Speaker Mike Moyle, is the latest example of this backward approach. A family living in Pocatello, bringing in the average Idaho household income of around $75,000, would see a modest savings of $178 a year. Meanwhile, a family in Sun Valley earning $1,000,000 would receive $3,832.

The bill costs far more than our budget can withstand, with a price tag of 2.5 times what the governor says is workable. It will crowd out tax changes that could help working families and cut into revenues needed to maintain our schools, roads, and healthcare. Failing to meet our basic obligations is fiscal malpractice.

Further, this bill doesn’t represent the values and priorities of Idahoans. Instead of eliminating the grocery tax, Republicans are slashing the income tax rate to 5.3% while keeping food taxed at 6%. That means working families pay a higher tax rate when they buy essentials like groceries, diapers, and medicine than the wealthiest Idahoans, and most profitable corporations pay on their surplus income.

This is also bad economics. When we give more dollars to working families, they spend it at the neighborhood grocery store, get their oil changed, and get their hair cut. This has positive ripple effects that boost our small businesses, create jobs, and fuel our local economies. However, corporate tax cuts mostly benefit out-of-state shareholders.

Plans coming out of D.C. are similarly harmful. Congressional Republicans want to slash taxes for the richest 5% while raising them for most Idahoans. The same Pocatello family that saved $178 under HB 40 would pay an extra $1,530 in federal taxes, while a millionaire gets a $36,320 windfall.

The Republican supermajority is failing Idahoans.

While Idaho families are struggling with soaring housing costs, health care access, and the need for strong public schools, Republicans are starving services and rewarding the rich. It is time to start investing in policies that help working families: Repeal the sales tax on groceries. Stop shifting the load onto the middle class. And fix the homeowner’s property tax exemption, a solution supported by a majority of voters according to the recent Idaho Public Policy Survey.

If Republican lawmakers give up their trickle-down economics and start listening to Idahoans, we can build a stronger middle class and a stronger economy.

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Lauren Necochea
Idaho Democratic Party Chair