Analysis examines impact of tax-cut bill

The Idaho Center for Fiscal Policy has released an analysis of HB 380, the proposal from House Majority Leader Mike Moyle, R-Star, to cut the state’s corporate and individual income tax rates by a tenth of a percentage point while raising the grocery tax credit by $10. “Most Idaho households would not see a significant change in their tax bill from this legislation,” the center found. “The top 20% of earners – those with incomes of $99,000 and above – would receive 59% of the monetary benefit.”

The analysis also notes Idahoans with the lowest incomes might not see any benefit from the increased grocery tax credit, because anyone who receives food stamp benefits, which are for the low-income, is disqualified from the credit for the month in which they receive the benefits.

“Idaho households with incomes between $41,000 and $64,000 a year would see a $23 decrease in their tax liability, on average,” the analysis found. “The top 1% – those with incomes of $444,000 and above – would see an $815 tax cut, on average.” You can see the full analysis here .