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Analysis gives clarity to opposition tax plan

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Posted at 11:56 AM, Feb 02, 2016
and last updated 2016-02-02 14:04:46-05

The Center for Fiscal Policy released an initial analysis on HB410, the Democrat response to a tax bill offering to cut rates for top earners, reporting more help for low-income workers.

The opposition bill, authored by Rep. Mat Erpelding - D, Boise - grants those eligible to receive a credit from the state totaling 8% of their earned income tax. In effect, it helps a limited number of low-income workers.

According to the analysis, the tax cut would apply to 18% of Idahoans. That breaks down to 39% of the very poorest workers and a quarter of those earning $22,000 - $64,000. The average amount of tax credit varies between $142 - $242. You can see a graph of the report above.

In response to the initial report, Erpelding released the following statement:

"We (Democrats) feel that the main focus of the Legislature is to ensure that our communities have the funding needed to provide high quality educational programs to our children and grandchildren. I oppose Rep. Moyle’s bill because we have so much work to do to ensure that our schools have the resources needed to help Idaho businesses and families compete in a 21st century economy.

"My proposal is a contrast to the proposal by Moyle. I believe that working families are those who most struggle to make ends meet and are working hard to provide for their families.  This is in contrast to Rep. Moyle’s bill that gives huge tax breaks to most wealthy among us while providing a pittance to those who work hard to provide for their families. My bill will not receive a hearing but a variation of it deserves attention. If we truly want to make the average Idahoan’s family do better - then this is but one option and one that likely needs refinement."

By comparison, the Center for Fiscal Policy's report on House Majority Leader Rep. Moyle's plan shows it benefits high income earners more. The top 1% would see tax relief totaling $815. The average Idaho household would see tax relief of roughly $20.