TAX CUTS: Winners and losers
Idaho’s recent tax policies raise an important question: who benefits, and who pays the price? Since 2018, Idaho households have received an estimated $4.5 billion in combined state and federal income tax cuts. While tax relief can help families, the overwhelming share of these benefits went to high-income households. In fact, the top 20 percent of earners received nearly three-quarters of all tax reductions, while some low-income Idahoans actually saw their taxes increase.
At the same time, federal policymakers reduced support for healthcare and food assistance programs, shifting more responsibility to states and local communities. Rather than preparing for these added costs, Idaho lawmakers continued to reduce state revenue through additional tax cuts and tax conformity measures. The result has been budget shortfalls, across-the-board agency cuts and growing pressure on schools, healthcare systems, and local governments.
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