Just how much do the wealthy benefit from Idaho, federal tax cuts? | Opinion
A new report shows just how much the wealthy benefited from tax cuts from the Idaho Legislature and through federal legislation.
The report, released Monday, from the Idaho Center for Fiscal Policy looked at the impact of several years’ worth of state tax cuts combined with tax cuts from the federal Trump tax cuts of 2017 and the One Big Beautiful in 2025.
“While these tax changes reduced taxes for many Idahoans, the largest benefits overwhelmingly flowed to wealthy households, while some low-income Idahoans experienced tax increases and increased financial strain,” according to the report.
Yes, we keep hearing Idaho’s congressional delegation tout the tax cuts to everyday, working Idahoans. And it’s true: no tax on tips and overtime, a bigger standard deduction and child tax credit and more help for seniors have helped many.
But what they don’t talk about is how much the wealthy have benefited relative to everyday working Idahoans.
According to the Idaho Center for Fiscal Policy Report, Idaho households have received $4.5 billion in state and federal income tax cuts since 2018, and 73% of the tax cut benefits since 2018 went to the top 20% of income earners, those earning $143,000 or more.
Additionally, the top 1% of income earners — those making $765,500 and above — received an average income tax cut of $111,610.
Meanwhile, families in the middle fifth of income levels ($56,500-$95,500) saw an average tax cut of $1,318, and some families with the lowest incomes ($29,200 or less) actually saw a $96 tax increase.
I’m sure if you look in the comments section of this story or on social media, you’ll see people say that of course, the wealthiest got the biggest tax cuts; they contribute the most in taxes.
That’s true, but we don’t have to structure tax cuts to provide the wealthiest with the most benefit. We could — and should — structure tax cuts so that the lowest-income and middle-income earners receive more of a benefit.
Someone making $60,000 a year could use another couple thousand dollars to help pay for necessities such as food and gas, while someone making $1 million a year is probably going to use that extra $111,610 to buy a second boat.
And remember, a lot of the budget cuts at the federal level were on the backs of people who rely on food stamps, Medicaid and healthcare subsidies. And as the Idaho Center for Fiscal Policy report points out, the Idaho Legislature allowed the state’s $205 per child, non-refundable Child Tax Credit to expire. All while the state cut budgets across the board, affecting several departments, from Health and Welfare to higher education.
All of this is independent of the fact that the tax cuts on the federal level have blown a massive hole in the federal budget, something Sens. Mike Crapo and Jim Risch once claimed to care about.
According to the Congressional Budget Office’s February report, the federal budget deficit in fiscal year 2026 is $1.9 trillion and grows to $3.1 trillion by 2036. Relative to the size of the economy, the deficit is 5.8% of gross domestic product in 2026 and grows to 6.7% in 2036.
Not only are these budgets unsustainable, they hurt those who need help the most while benefiting those who need it the least.
Scott McIntosh is the communities editor and columnist for the Idaho Statesman. You can email him at smcintosh@idahostatesman.com or call him at 208-377-6202. Sign up for his free weekly email newsletter The Idaho Way.
