“There’s no consensus in economics that tax cuts have a boost on the economy in the long run,” said Eric Stuen, an economics professor at the University of Idaho. “I think a few percentage points here or there doesn’t make much of a difference for the functioning of the economy.” But, he said, “It can change the government fiscal picture and budget deficit picture pretty dramatically.”

In 2001, Idaho permanently cut its personal and corporate income tax rates by four-tenths of a percentage point, dropping the top income tax rate to 7.8 percent and the corporate rate to 7.6 percent. Serious state budget problems and a sales tax increase followed; in Idaho’s longest-ever legislative session in 2003, then-Gov. Dirk Kempthorne kept lawmakers in town for 118 days, before they agreed to tax hikes to avoid deep cuts to schools. More here. Betsy Russell, SR

---

---