House, Senate Dems say burden of Otter’s tax-cut proposals would fall on families
Democratic legislators today decried Gov. Butch Otter’s proposed tax cuts, saying they’ll fall “on the backs of Idaho families with children.”
House Minority Leader Mat Erpelding, D-Boise, said Otter’s proposal for a dependent tax credit doesn’t fully offset the federal removal of the personal exemption, leaving larger families in Idaho paying more. “What Gov. Otter has provided is an $85 non-refundable tax credit for children,” Erpelding said. “That’s laughable. Eighty-five dollars is like one day of a babysitter for most families. … If you’re a family of five, you’re going to pay more under his current plan.”
Without changes to Idaho’s tax system, the state Tax Commission estimates that Idaho families will pay more than $100 million more in income taxes next year due to the federal changes, including the elimination of the personal exemption that allows large families to get larger deductions on their tax returns.
Erpelding said there’s a “host of ways” Idaho could respond better to the federal tax changes. “If we had a refundable tax credit of $250, you would see families in Idaho benefiting substantially,” he said.
Erpelding and Senate Minority Leader Michelle Stennett, D-Ketchum, had some praise for Otter as well. “We appreciate his spirit of civil discourse and we know he cares about Idahoans and their future,” Erpelding said.
Stennett said Democratic legislators this year will sponsor legislation to expand Medicaid, and Erpelding called Otter’s health care proposals this year “just a stunt” that he said wouldn’t lower health care costs, insurance rates or property taxes. “Had the governor stood firm and pushed for Medicaid expansion, he would have accomplished all three,” he said.
Stennett said Democratic lawmakers will bring back bipartisan legislation to eliminate mandatory minimum sentences for non-violent drug offenders; will push for a statewide early childhood education program; and will support legislation to reduce the unemployment insurance tax on businesses. They’ll also push to increase Idaho’s $7.25 per hour minimum wage.
“Idahoans deserve the opportunity to pursue the American dream – the opportunity to earn a decent income and enjoy the fruits of our labor in providing for our families while enjoying a little extra in our pockets at the end of the day,” Stennett said. “Increasing the minimum wage is essential to the economic security of many Idahoans and proactive in maintaining a healthy economy.”
Democrats are a small minority in the Idaho Legislature; they hold just 11 of the 70 seats in the House and six of the 35 in the Senate.
Otter, in a media availability following his address to lawmakers, addressed the minimum wage issue, saying the head of Chobani Yogurt “asked me to consider raising the minimum wage, and I said, ‘That’s up to you.’” Otter said he believes the market should control wages.
