Tax breaks anger Democrats

Wed., Jan. 13, 2010

Associated Press

BOISE – Republicans have let special interests loot from Idaho’s revenue stream by giving them special tax breaks, minority Democrats charged Tuesday in an angry response to Gov. Butch Otter’s bid to cut education and state agency funding.

House Minority Leader John Rusche, D-Lewiston, said Otter’s $2.46 billion budget proposal for fiscal year 2011, down from $2.5 billion in the year ending June 30, continues to slash critical services without a long-term job creation strategy.

Democrats were particularly incensed that Republicans haven’t more heartily embraced the elimination of state tax exemptions. Idaho has dozens of sales tax exemptions and exceptions worth some $1.7 billion annually in 2010, according to the Division of Financial Management.

Getting rid of the tax breaks would boost revenue and help pay for public education, the Department of Parks and Recreation and Idaho Public Television, all of which stand to see their funding slashed or eliminated under Otter’s plans.

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