In response to Republicans on the House Revenue and Taxation Committee voting along party lines to advance House Bill 40, Idaho Democratic Party Chair Lauren Necochea released the following statement:

“On Jan 30th, House Republicans pushed forward yet another reckless tax giveaway that overwhelmingly benefits the wealthiest Idahoans while leaving working families behind. House Bill 40 gives the top 1% an average tax cut of $5,358, while middle-class Idahoans will see around $127. Idahoans need fair tax policies that build a thriving middle class, not another upside-down scheme that benefits those who need it the least.

“Instead of eliminating the grocery tax, something Idaho families are asking for, Republicans are slashing the income tax rate to 5.3% while keeping food taxed at 6%. That means working families pay a higher tax rate when they buy essentials like groceries, diapers, and medicine than the wealthiest Idahoans and most profitable corporations pay on their surplus income.

“This bill could also cost more than Republicans claim. Independent estimates put the price tag for the income cut alone at $258 million, more than 2.5 times what the Governor says is even workable within our budget. It is so costly it will crowd out tax changes that could help working families and cut into revenues needed to maintain our schools, roads, and health care.

“This bill repeats a disturbing pattern. Since 2020, a string of tax bills has doled out $15,000 annually to the top 1 percent and just $27, on average, to workers in child care and food service. Idahoans deserve better. Democrats will keep fighting for tax fairness, starting with ending the grocery tax, not more giveaways to the top.”