May 18, 2005 in Idaho

Group says state must revamp taxes

Associated Press
 

BOISE – Idaho is among 27 states with tax structures that hurt low-income residents and put public programs at risk if the economy sours, a Washington, D.C.-based tax policy group said Tuesday.

Those states failed to maintain a mix of taxes that keep pace with needed government services, the Center on Budget and Policy Priorities said Tuesday.

Its risk is on par with California, Hawaii and Washington state, the group said.

With Idaho’s economy accelerating in the first quarter of 2005 – it added 17,000 jobs compared to a year ago and a state budget surplus is expected – lawmakers should revamp the tax system, said Don Reading, an economist who introduced the study at the Idaho Statehouse.

“We need to broaden the sales tax,” Reading said. “With this structural deficit, we’re going to go into crisis in the future.”

Other measures could include capturing taxes from Internet commerce, dropping tax exemptions for services and corporations and revamping property taxes, he said.

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