Survey: Most Idahoans OK with tax rate

BOISE - A new public opinion survey shows widespread support for Idaho's existing tax burden, even as lawmakers talk about making additional cuts.

The survey, by Boise State University's School of Public Service, also found strong support for current state spending levels, as well as ongoing dissatisfaction with the quality of Idaho's public school system.

"The key finding is that education and the economy remain the top priorities," said Justin Vaughn, an associate professor of political science and co-author of the survey report.

The survey involved phone interviews with 1,000 adults across the state. Respondents were asked their views on a variety of public policy issues, including education, the economy, workforce development, taxes and health care. Vaughn said each interview took an average of 18 minutes to complete. The survey's margin of error is plus or minus 3.1 percent.

Regarding Idaho's tax burden, 62.6 percent of respondents felt it was just about right. Another 8.7 percent felt taxes were too low, compared to 24.1 percent who felt they were too high.

However, the survey was conducted during the first week of December. That was prior to reports that the federal tax reform effort could cost Idaho taxpayers more than $100 million next year, unless the Legislature takes steps to offset the increase.

If the Legislature does move forward with tax cuts, 59 percent of respondents favored eliminating the sales tax on groceries, while only 28.1 percent think income tax rates should be reduced.

"That's pretty consistent with past survey results," Vaughn said.

It's also contrary to the direction Gov. C.L. "Butch" Otter wants to go. He's proposing a $149 million cut in corporate and individual income tax rates, and has threatened to veto any grocery tax bill that makes it to his desk.

The survey found additional differences between public views on state spending and the plans proposed by the three leading Republican gubernatorial candidates.

More than 42 percent of survey respondents felt the state budget should stay about the same. Only 8.3 percent thought state spending should decrease; four times as many - 35.7 percent - said it should be increased.

By contrast, all three GOP gubernatorial contenders have proposed significant tax cuts and want to at least slow the rate of state spending growth, if not reverse it entirely.

Health care was another area where public opinion seems to differ from legislative priorities.

Although nearly 60 percent of respondents somewhat or strongly disapprove of the Affordable Care Act, fully 75 percent think the Legislature should takes steps to provide health care access for Idaho's Medicaid gap population.

An estimated 78,000 adult Idahoans make too much to qualify for Medicaid and too little to qualify for subsidized health insurance through the state exchange. Lawmakers have avoided addressing their plight for the past five years; however, Otter is proposing a dual-waiver option this session that could help about half the gap population.

The survey found that education remains the top priority for Idahoans, by a significant margin. On a scale of one to 10, more than 72 percent ranked it at least an eight, compared to 52 percent who ranked taxes that highly.

However, two-thirds of respondents rated the quality of Idaho's school system as fair or poor, compared to just 4 percent who rated it excellent and 28.9 percent who felt it was good.

Overall, the survey found that 57.5 percent of respondents felt the state was headed in the right direction.

The full survey can be viewed online at http://bit.ly/2Dn6oxK.

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Spence may be contacted at bspence@lmtribune.com or (208) 791-9168.