Idahoans are great at letting their politicians know what they like, and in Idaho lower taxes reigns supreme. Lowering taxes is fairly simple on paper, but there is a lot to consider whenever the economic landscape of a state changes.
Justin Ackerman | Argonaut
Recently Idaho Speaker of the House Scott Bedke toyed with, and eventually retreated, from an idea that would abolish the $80 per person grocery tax credit for medium to higher income families. The grocery tax credit accounts for nearly $80 million, and according to Bedke’s bill, ending it would allow Idaho to lower its corporate tax rate from 7.4 percent to 6.95 percent.
Bedke hoped this change would help modernize Idaho’s economy. It would also bring Idaho’s tax rate closer to the six states it borders, who all have a lower tax rates, minus Oregon — who doesn’t have sales tax.
Other plans for the $80 million included education funding, but the support in the Idaho State Legislature wasn’t present. On top of that, Idaho’s former Chief Economist Mike Ferguson claimed the legislation would hurt middle-income families, as opposed to helping them.
The lack of support prompted Bedke to drop the legislation, but this signals a bigger issue with Idaho’s government. Education rankings, average income and the entire structure of Idaho’s economy has remained stagnant, and any innovation is always met with intense skepticism and harsh criticism.
This happened to the Luna education laws and state level healthcare exchanges. Education and health care have been constant problems for Idahoans. Changes to education would have increased technology in the classroom, and could have ended teacher tenure — allowing schools to get rid of underperforming teachers.
Not that the Luna bills were without fault, teachers losing jobs and required online classes were two major problems with the legislation. It was something new though, it was a potential solution to a problem Idahoans have faced for over a decade.
The Affordable Care Act was met with hostile action from Idaho lawmakers, who have since been fighting hard to rid the state of its health care exchange. Just unlike Luna’s policies, it’s too early to see how the ACA will play out, but it’s a potential solution to a big problem.
The lack of innovation shown by Idaho’s government hurts everyone in the state. Nobody benefits from a stagnant economy, just like nobody benefits from bad education or costly health care. Bedke’s idea may not have been perfect, but he’s bringing something to the table.
Idaho needs something new and change will always bring uncertainty. It also might bring solutions, so it’s important to keep an open mind. Open mindedness isn’t exactly synonymous with Idaho, but combined with a small population with room for innovation, this could be a recipe to make Idaho rise to the top.
Justin Ackerman can be reached at [email protected]