A plan to repeal the grocery tax and lower the income tax in exchange for an increase in the gas tax is a good compromise that will provide ongoing economic benefits to Idahoans, Idaho Freedom Foundation President Wayne Hoffman said Wednesday.
Republican Rep. Mike Moyle of Star introduced the plan this morning In the House Revenue and Taxation Committee. The measure comes from Moyle and Sen. Cliff Bayer, R-Boise.
The bill calls for a reduction in the top marginal income tax from 7.4 percent to 6.7 percent. The plan leaves in place the marginal income tax brackets for Idaho's lowest wage earners. Middle income brackets are eliminated under the plan, which raises the gas tax by 7 cents on the gallon. The plan holds taxpayers harmless by eliminating the grocery tax.
"This plan provides all Idahoans tax relief at the cash register when they buy their groceries. This relief will grow as grocery prices increase. Along with the dramatic reduction in the top marginal income tax, this is tax reform we have long championed and support," Hoffman said. "While we would have preferred no increase in the gas tax, the overall impact of this legislation is positive and represents a conservative approach to tax policy."
Note: The Idaho Freedom Foundation has led the charge to repeal Idaho's tax on grocery. To learn more or help out, visit JustFoodNoTax.com.
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