Testimony: ‘Terrific reforms in tax policy,’ ‘Would remove millions from the general fund,’ ‘Money in taxpayers’ pockets’
Among those testifying this afternoon at the Senate Transportation Committee hearing on HB 311:
Wayne Hoffman of the Idaho Freedom Foundation said the bill includes “some terrific reforms in our state tax policy,” and said, “It would provide meaningful tax relief across Idaho.” Sen. Bob Nonini, R-Coeur d’Alene, asked him, “A couple of the other analyses we’ve seen say that this will raise income taxes on the lower income, middle income people. Can you comment on that?”
Hoffman replied, “That’s why the grocery tax component is so important. … Most people end up either neutral or with a positive outcome from this kind of tax policy shift.”
Karen Echeverria, speaking for both the Idaho School Boards Association and the Idaho Education Association, said both groups have big concerns about the bill. “I am here to speak simply on one issue and that is the general fund,” she said. “We recognize that Idaho’s transportation and infrastructure needs have been neglected for far too long. However, we have concerns about any legislation that would remove millions of dollars from the general fund, which is the only fund that the state draws upon to fund our public education.”
Bob Neugebauer, publisher of the Gem State Patriot, praised the bill for removing the sales tax from groceries. “The important reality of this bill is that it will put more discretionary money into the pockets of taxpayers,” he said.
Donna Yule, executive director of the Idaho Public Employees Association, spoke against the bill. “If cutting taxes for the wealthy was going to lead to greater prosperity, it would have done so by now,” she said.
Pam Eaton of the Idaho Retailers Association said, “We have concerns with the section that eliminates sales tax on groceries.” She said using the SNAP definition of food, the definition from the food stamp program, is problematic for Idaho retailers. “There are things within this piece of legislation that we would like corrected,” she said. “This is a very important logistical change for retailers, and we just want to make sure it’s done right.”
