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. 

The costs of public services do not disappear when revenues decline. Instead, they are often shifted to Idaho families through higher property taxes, rising college tuition, increased fees and reduced access to essential services. Our school districts increasingly rely on local levies to cover basic operating costs, while our public colleges continue to increase tuition following state funding reductions. 

Strong communities depend on strong public investments. Quality schools, safe infrastructure, accessible healthcare and public safety all require sustainable funding. As Idaho policymakers consider future tax changes, they should carefully weigh the tradeoffs between tax cuts that disproportionately benefit the wealthy and the public investments that support working families and thriving communities across our state. 

LEN CROSBY
Post Falls