OPINION: Death by taxes elsewhere versus life with taxes here in Idaho

Some say that death and taxes remain the only two certainties in life. In Idaho, we also have the certainty of hearing about the need to cut Idaho’s taxes.

All the time.

Every legislative session.

Without fail.

How can Idaho legislators commit to cutting taxes every single year? Isn’t there a minimum tax revenue required to run the state government?

I have yet to hear anyone say: “Deal with it, people; there’s nothing left to cut.”

They’d be ousted if they tried.

Talking about cutting taxes is an easy thing to say if you want people to agree with you because nobody actually enjoys paying taxes. Personally, I’d rather take the money I pay in taxes and go to Maui. At least, I think I would. I’ve never been there because I’ve been too busy working to pay for my expensive kids, student loans, other bills and, yes, taxes.

But it sounds lovely.

Too bad the IRS and the Idaho State Tax Commission won’t accept a picture of me waving from the beach sipping a pineapple smoothie instead of money.

Sigh. Maui really does sound fabulous.

Honestly, I wish the federal government would take an ax, a machete or even a blowtorch to the tax code to reduce my tax bill. And, in comparison, I never felt like Idaho taxed unfairly. So aside from all the spin, how bad is Idaho’s tax burden?

The Tax Foundation ranked Idaho 29th in the nation for state collections per capita, right behind Wisconsin in the 28th spot and before Nevada and Nebraska, ranked 30th and 31st, respectively.

In 2024, Idaho ranked 37th for property taxes at 0.67%, sandwiched between Kentucky and Tennessee. Interestingly, Colorado, Utah, Wyoming and New Mexico have lower property tax rates than Idaho, ranging from 0.6% to 0.55%. I was surprised to see that Hawaii ranked 50th for property taxes with 0.26%.

Maui, here I come!

Of course, with Hawaii’s hyperinflated property valuations, there’s still plenty of money to run the government. But factor in the cost of goods and services that must be shipped in and — dang it — Hawaii is still insanely expensive.

On the topic of goods and services, state income tax and property taxes alone don’t paint a complete picture. We must discuss sales taxes. Alaska, Oregon, Montana, Delaware and New Hampshire do not collect a state sales tax, but all other states do. At 6%, Idaho sits right in the middle with 24 states collecting a lower sales tax percentage.

Total tax burden combines property taxes, individual income taxes, and total sales and excise taxes into a total percentage of income. The total tax burden among states ranges from a low 4.9% tax burden in heavily subsidized Alaska to 12% in New York. Using the total tax burden measure, Idaho ties with North Carolina for 32nd position at 7.9%, ranking just below Michigan at 8% and just above Arizona and Missouri, which are tied at 7.8%.

Taxes on income and consumable goods have always been present with varying degrees of acceptance. The excise tax that prompted the Boston Tea Party would be one example of a tax that led to unintended consequences and serves as a cautionary tale. Some say that property taxes are a stable, fair and equitable tax that covers the cost of the infrastructure and services enjoyed by each household. Others argue that since they don’t utilize all services funded by property taxes, they shouldn’t have to pay for the part they don’t use.

And this is where we get into the weeds. Individual beliefs on the role of government and personal values of what constitutes a necessary government service and what does not dictate public acceptance of taxation.

In evaluating comparative data, Idaho’s tax burden could be much, much heavier, but it could also be lighter. Idahoans’ perennial distaste for taxation provides an impetus for tax reduction, though too many changes implemented too quickly could have a destabilizing effect on the state budget.

Several bills introduced this legislative session would reduce taxes in Idaho. House Bill 40 reduces Idaho’s individual income tax and corporate tax rates from 5.695% to 5.3%. HB 61 increases the grocery sales tax credit to $155. HB 74 seeks to reduce property taxes by putting $50 million per year into a school district facilities fund and another $50 million for the state’s homeowner property tax relief fund.

We shall see what happens to these bills as they move through or stall in the Legislature this session and public commentary is welcome.

If they pass, maybe I’ll get that pineapple smoothie in Maui after all.

But even if they don’t all pass, the Legislature’s attempts to lower taxes are greatly appreciated. I’ll gladly accept life with taxes in Idaho, versus death by taxes in other states.

Beasley, of Moscow, is an active Republican who currently is pursuing a doctoral degree in education from the University of Idaho.