IFF Backs Income, Grocery Tax Plan
A proposal in the Idaho House of Representatives would do great things for Idaho’s economy and workers. House Bill 311 would get rid of the state’s silly system of taxing groceries. Equally important, it would lower the top marginal income tax rate from the stratospheric 7.4 percent to a much more respectable 6.7 percent. By eliminating the tax on groceries, Idahoans would see instant relief on their store purchases. Under Idaho’s current tax system, Idahoans pay a 6 percent sales tax, but we’re given a “grocery tax credit” on our income tax return many months later. That grocery tax credit–$100 per person or $120 for seniors—often doesn’t come close to covering the sales taxes we’ve paid/Wayne Hoffman, Idaho Freedom Foundation. More here.
Question: I'm intrigued by this legislation that would decrease the income tax rate, eliminate the grocery tax and increase the gas tax. It sounds like an acceptable trade off. Thoughts?