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Analysts: House tax bill hits large families

The Idaho Center for Fiscal Policy has released the results of its study of Idaho House Bill 463. The bill passed the Idaho House earlier this week.

The Center reported the bill will increase taxes for larger families. Those with 3 or more children will feel the biggest impact. Households with an income between $49,000 and $63,000 with 3 or more children will end up paying about $415 more in state taxes, on average.

According to the Center, the tax law would cut taxes for wealthier Idahoans. The top 1 percent of earners would receive an average $4,000 cut in their state tax bill. The wealthiest of Idaho earners in that top 1 percent have already received a cut of $45,436, on average, on their federal tax bill.

And, analysts said the proposed child tax credit in the bill does not offset the tax increases on larger families that come from full conformity with federal tax code changes.

One motivation the House cited for reducing taxes is to offset the increase in revenue that aligning the state tax code with the new federal tax cuts will bring. If Idaho chooses to conform, the state will collect additional revenue in the range of $82 million to $97.4 million. Center analysts said that means some Idahoans, especially those with multiple children, will pay more in state taxes.

You can see the full analysis here.

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