Tea party tax plan brews but lawmakers splash cold water on it
Key lawmakers are splashing cold water on a tea party-backed proposal to extend Idaho's sales tax to cover most services, while also lowering the rate from 6 percent to 4 percent. "I don't know whether that particular piece of legislation will ever materialize," House Tax Chairman Dennis Lake said at yesterday's AP Legislative Preview. "The amount of tax collected is exactly the same. All it does is lower the rate."
But, he said, "As soon as that rate is lowered, there will be an immediate push to raise the rate for whatever reason, and it will be right back up to 6 percent in a few years." Lake said, "What we found is there is a comfort level in the state of Idaho with a 6 percent sales tax. There is not a comfort level with 7 percent, I can tell you that."
Other top lawmakers also were critical of the idea, saying it would hurt a section of Idaho's economy at a time when businesses are saying they want stability in the state's tax structure. Twin Falls Times-News reporter Ben Botkin interviewed Rep. Janice McGeachin, R-Idaho Falls, about the proposal earlier; you can read his full story here.