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Monday, October 21, 2019  Spokane, Washington  Est. May 19, 1883
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News >  Idaho

Candidate plans to cut Idaho taxes if he’s elected governor

UPDATED: Fri., Jan. 5, 2018, 1:37 p.m.

Associated Press

BOISE – U.S. Rep. Raul Labrador said he plans to cut Idaho’s sales, individual and corporate tax rates to 5 percent each if he’s elected governor of the state.

The Republican candidate on Thursday made public highlights of his economic plan, which includes the elimination of the sales tax on groceries and the personal property tax on businesses, the Idaho Statesman reported.

“Idaho has some of the highest income tax rates in the West, hurting small businesses and families,” Labrador said. “Making this even worse, our tax code is riddled with loopholes that favor some industries over others, creating an uneven playing field and distorting the free market.”

The state has a 6 percent rate for sales tax, a 7.4 percent rate for corporate tax and a 7.4 percent rate for individual income, according to the Idaho Tax Commission.

While Washington, Nevada and Wyoming do not have a tax on individual income, the rate in Utah is 5 percent, Montana’s rate is 6.9 percent and Oregon’s rate is 9.9 percent, according to a 2017 Tax Foundation analysis.

Lt. Gov. Brad Little and Boise businessman Tommy Ahlquist are among the other Republican candidates running for governor in the May primary.

Little has said he plans to cut income tax, eliminate the grocery tax and link new tax exemptions to a proportional reduction in state spending. He also said he would reduce unemployment taxes and increase the exemption for the personal property tax.

Aiming to slash state spending deemed as wasteful, Ahlquist said he plans to cut $100 million in his first 100 days. He also said he would simplify the state’s tax code.

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