Estefania Mondragon: It’s time to center working families in tax policy
By Estefania Mondragon
Familia (family) is at the heart of Mexican and many Latin American cultures; it is also at the center of our shared Idaho values. Our families help us through difficult times financially and emotionally. Idaho families are raising our state’s future leaders, and we as Idahoans have a real stake in their wellbeing.
A tax cut bill that’s making its way through the Legislature would give most Idahoans only a one-time rebate of $75 per person, or $300 for a family of four, according to the Idaho Press. Many Idahoans would not get the bigger benefits in the bill because those benefits are only for corporations and the very wealthy. But when it comes to tax relief this year, leaders can – and should – do more to let thousands of Idaho families who work hard but earn modestly keep more of what they earn.
The cost of living in Idaho shows no sign of slowing down. It is harder for working Idaho families to find and remain in homes, put food on the table and pay for needed medical expenses. These costs fall heavily on Idaho families of modest incomes. Idaho families of color face added barriers because a long history of job and income discrimination mean they earn less for the same work.
This is why it is so important for Idaho lawmakers to pass a permanent credit for the large group of Idahoans who are working hard to get ahead but right now earn modest wages. It’s called an Idaho Working Families Tax Credit. As in other states, the credit would mirror the federal government’s Earned Income Tax Credit, which is dependent upon a person’s income. As a person’s income rises, the amount they receive every year from the credit eventually shrinks.
This would help our Idaho families who need it most offset the sales tax they pay and hold onto more of their hard-earned dollars.
That credit would make a difference for working families. Consider Teresa Garcilazo, who works as a certified nursing assistant in Mountain Home. She just recently had twins, meaning she and her fiancé now have four children and continue to face high costs of living. An extra few hundred dollars a year would make a difference for her family, she said. She wants to put a little extra a month toward payments on the family car or house, or work on paying down credit card debt.
She’s not alone either. Across virtually every community in Idaho, the credit would benefit 332,200 Idahoans, including children. Idahoans would spend the money locally on groceries, car repairs or other needed services. This spurs the local economy and helps small businesses thrive. Not only that, the credit would help keep working parents in the workplace, because they would have more money for child care. An Idaho Working Families Tax Credit isn’t just an investment in our Idaho families and our future generations – it’s also an investment in our current local economy. While an Idaho Working Families Tax Credit would benefit hundreds of thousands of Idahoans who need it most, it need not be costly to our state.
And we have the extra revenue to do it. If Idaho passed a Working Families Tax Credit that is 10% of the federal Earned Income Tax Credit, it would mean our households of modest incomes would receive an extra $256 annually, on average. That is an achievable $35 million overall.
Our Idaho families are there for us in times of hardship. It’s time we, as a state, are there for them.
Estefania Mondragon is a daughter of immigrant parents from Tarandacuao, Guanajuato, Mexico, and she is the executive director of PODER of Idaho. She brings awareness, both of her languages, heart and imagination to her work. She wholeheartedly believes that change starts from the inside out and is passionate about building power within the intersections. She hopes to raise community consciousness, shift culture, and bringing an anti-oppression lens to the conversation.