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Spokane, Washington  Est. May 19, 1883

Eye On Boise

Economist: Wealthy aided by grocery tax shift, middle class would face tax hike

Here's a news item from the Associated Press: BOISE, Idaho (AP) — Idaho's former chief economist says families of four earning more than $117,750 would see lower taxes, should lawmakers adopt House Speaker Scott Bedke's proposal to shift money from a grocery tax credit to individual and corporate income tax cuts. Mike Ferguson, chief economist for six governors including Gov. C.L. "Butch" Otter, said Thursday families earning less would likely see a higher tax burden, according to his calculations. For instance, Ferguson said somebody earning $50,000 would see their tax liability increased $305, based on his analysis of Bedke's proposal, which Otter says he'd at least consider. Bedke's plan would leave the grocery credit intact for families earning 138 percent of the federal poverty line, or $32,499. Ferguson now heads the Idaho Center for Fiscal Policy, which analyzes budget and tax policy.



Betsy Z. Russell
Betsy Z. Russell joined The Spokesman-Review in 1991. She currently is a reporter in the Boise Bureau covering Idaho state government and politics, and other news from Idaho's state capital.

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