Slashing taxes, subsidizing private school tuition and cutting government spending are the top priorities of Idaho Republican legislative leaders.
House Speaker Mike Moyle (R-Star) said he’ll be targeting sales, income and property tax rates, though it’s unclear how much they might be reduced.
“…more and more tax relief and less and less spending. I think it can be summed up that way,” Moyle said.
Lawmakers have slashed income tax rates each of the last four years, adding up to $2.8 billion cumulatively in lost revenue during that time, according to the Idaho Center for Fiscal Policy.
Idaho’s personal and corporate income tax rates currently stand at a flat 5.695%. The state’s sales tax rate is 6%, not including local option taxes and property tax rates vary widely depending on where you live.
Top Republicans plan to revive a tax credit proposal that would reimburse parents a portion of the money they spend sending their children to private school.
Democrats, like Senate Minority Leader Melissa Wintrow (D-Boise), said proposals like that could lead to the erosion of Idaho’s public schools.
“There’s just no negotiation for me here. There’s a line in the sand for our public schools and protecting our students and our teachers and the taxpayer dollar,” Wintrow said.
Gov. Brad Little didn’t offer a concrete position on how he’d like to see such a proposal be drafted, but noted he’s been in talks with lawmakers to chart a path forward.
Little also didn’t give any spoilers ahead of Monday’s state of the state address, but he left a few crumbs.
He said attempts to unravel Medicaid expansion would be complicated and potentially cost taxpayers even more if counties must once again pick up the tab for indigent health costs.
“What may look like a temporary savings may not be a temporary savings if we have to go back to [covering indigent medical care] on your county taxes,” Little said.
He said he thinks the incoming Trump administration will also be more likely to approve Idaho’s Medicaid waiver applications to restrict eligibility or add new program requirements.
Little also seemed open to expanding exceptions within the state’s strict abortion ban to not solely allow for the procedure if it threatens the life of the mother.
“I am always concerned as a long, always pro-life person, about basically the reproductive long-term health of the mother and are we addressing that, and I think the Idaho legislature – most of them – are interested in that also.”
Moyle, though, said he wants to wait to modify the law until the U.S. Supreme Court issues an opinion in a case that argues Idaho code violates federal emergency treatment regulations.
Little’s state of the state address begins at 1 p.m. Mountain Time Monday afternoon from the Idaho Capitol.
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