The Idaho Center for Fiscal Policy has released an analysis of the effect of HB 311, the GOP leadership’s tax bill, on Idahoans of various income levels. The conclusion: People in the middle 20 percent, with incomes ranging from $38,900 to $61,000 a year, would lose the most, and see an overall increase in taxes of, on average, $192. People at the top – the top 1 percent of earners, with annual income of $427,400 or more – would gain the most, seeing a tax cut of, on average, $4,990.
The lowest-earning 20 percent of Idahoans, with incomes of less than $21,300 a year, would see a tax increase averaging $68. The break-even point appears to be around $93,800 a year, from the group’s analysis; people who make less than that amount would see overall tax increases, while people making more than that amount would see tax cuts.
The bill would raise Idaho’s gas tax by 7 cents a gallon to 32 cents; remove the sales tax from groceries while repealing the current grocery tax credit; and cut Idaho’s top individual income tax rates, adjusting the top three brackets to impose a flat 6.7 percent rate on taxpayers who now pay 7.4 percent, 7.1 percent or 6.7 percent. Lower brackets would stay the same, at between 1.6 percent and 5.1 percent; as would Idaho’s corporate income tax, which is at 7.4 percent.
The Center for Fiscal Policy’s analysis looked at the overall impact of all those changes, taken together, on taxpayers of varying income levels. You can see the full analysis here.