This week, the Senate will likely vote on House Bill 380, legislation that slashes income tax rates with the benefits flowing overwhelmingly to those at the top of the income spectrum. 

Sen. Ali Rabe, who argued against it in the Senate Local Government and Taxation Committee, said the bill makes sweeping changes that are neither fair to working Idahoans nor responsible, and it is the hope of the Senate Democratic Caucus the legislation is killed on the floor.

The bill, a revised version of HB 332, Idahoans in the top 1% will receive nearly $9,000 each year, on average; while roughly 60% of Idahoans will receive only $14-15 a month. Middle-class families will see their taxes go down by just $246, on average. Households with very modest incomes can expect $80 in tax savings. 

Rabe said it also makes Idaho ineligible for a portion of the much-needed infrastructure dollars, threatens our ability to balance our budget, and directs benefits to the people (as well as profitable corporations and out-of-state shareholders) who need them the least.

Democrats in both the House and Senate have tried to introduce numerous pieces of legislation that address the real problems in the state, such as increasing investment in education and delivering targeted tax reform that benefits working Idahoans. Rabe said some of the proposed solutions included increasing the grocery tax credit, leveraging state funds to reduce property taxes, expanding property tax assistance, and increasing the homeowner’s exemption. The majority party denied the Democrats hearings at each point. 

“Idahoans have been asking us for property tax relief, not deep cuts to our budget which mainly benefit people in the top income tax bracket. This is one more stark reminder of the disconnect between the supermajority’s actions and what Idahoans really want us to do,” Rabe said.