Capitol Letters | The Idaho Legislature Report
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By Hayat Norimine, Accountability Editor; and Ryan Suppe, State Politics Reporter
It was a quiet day at the Idaho Capitol on Tuesday, as legislators participated in respectful workplace and active-shooter trainings. But the bill introductions begin Wednesday, starting with an income tax proposal.
Rep. Steven Harris, a Meridian Republican, will bring up draft legislation on corporate income tax. Gov. Brad Little and other GOP leaders have already signaled their plan to cut income taxes for the highest earners and corporations this year.
Little said the rebate and cuts would allow “working families to keep more of what they earned and free them from the penalty of living with historic inflation.”
Income tax versus property tax cuts — here’s what you should know
Why, in 2018, did an analysis rank Washington the most unfair state in its tax system? Because it has no income tax.
Washington beat out Texas and Florida — which also has no state income tax — because it has high regressive taxes. Over the years, Washington state officials and local jurisdictions have relied on hikes in sales and property taxes to fund essential services, such as education.
Why do sales and property taxes hurt poor people more than income tax? The Institute on Taxation and Economic Policy, a nonpartisan organization, analyzes states on whether their tax systems worsen inequality.
Someone making no money, for example, wouldn’t have to pay income taxes. They would, however, pay sales taxes to buy the basic items they need. Low-income people also generally pay property taxes. That includes non-homeowners, whose landlords typically transfer property tax spikes over to the cost of rent.
Idaho Republicans last year passed a bill that provided the largest tax rebates to the wealthiest households. It also cut the percentage of income tax paid for the highest tax bracket more than the lowest tax bracket. If they did it again, it would be the second consecutive year that hundreds of millions of dollars of the state’s projected surplus would go to income tax cuts.
“This Legislature has been a one-trick pony for years,” said House Minority Leader Ilana Rubel, a Boise Democrat, at a press conference Monday. “Every time we have any money in the bank, GOP legislators rush to pass a bill to give that money away in income tax cuts to the wealthiest individuals and corporations, sometimes not even in the state.”
A primer on RS: Scroll through legislative committee agendas, and you’ll often see a numbered “RS.”
“RS” stands for “routing slip.” It’s draft legislation that has yet to be introduced and given a bill number. In Idaho law, that draft legislation is considered private property until it’s introduced.
After a lawmaker introduces an RS, committee members then vote on whether to introduce it as official legislation — making it a public record, and moving it forward in the legislative process. Up next would be public hearings.
Committees to watch today:
- 8 a.m. Joint Finance-Appropriations Committee, which will discuss budgets, as well as federal COVID-19 relief and infrastructure package. Watch it remotely here.
9 a.m. House Revenue and Taxation Committee. Watch it remotely here.
Stories to read:
- Boise School District is moving forward with plans for full-day kindergarten. But the funding is still a question, as officials wait on Idaho legislation to provide the option statewide. Read Statesman education reporter Becca Savransky’s full story here.
- Gov. Brad Little wants to hire 21 more social workers for the Idaho Department of Health and Welfare, the Idaho Capital Sun reported.
- The governor’s proposed budget also included additional funding to fight Idaho’s wildfires, The Associated Press reported.
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This story was originally published January 12, 2022 at 5:00 AM.
