As I write this, the legislature is starting a special session. It will be interesting to see the outcome after this is published on Friday.
One of the biggest issues is the proposed additional education funding from sales tax. There’s no doubt that this proposal is in direct response to the efforts of Reclaim Idaho and its grassroots volunteers to get the state legislature to do its job and fund education in accordance with what’s written in Idaho’s constitution.
The move is definitely a step in the right direction. But it’s also meant to undermine Proposition 1, the Quality Education Act. Opponents of Proposition 1 will tell you it’s unnecessary now. See! The legislature is funding education!
Before you assume that the governor and legislators are finally moving forward as they should be, let’s remember what happened last time a big to-do was made of basing education funding on state sales tax revenue. They yanked it back as quickly as they could. It’s very easy to cut funding for education with this proposal. Our legislators have done it before, and they’re setting up to do it again.
Do you trust these legislators to maintain the education funding? Basing it on sales tax is a way for our so-called leaders to just go ahead and pull it at the first sign of what they say is trouble.
I applaud an increase in education funding. It’s a step in the right direction. Don’t be fooled. They’re counting on you to assume the problem is taken care of, so you’ll give up on the Quality Education Act, and there will be no backstop when they decide to take away this education funding down the road.
What about the proposed flat tax of 5.8%? Right now, we have marginal tax brackets going up to 6%. The other current tax brackets are 1%, 3% and 4.5%. There’s an exemption in income, but will it be enough to make up for this increase?
And what does it say when our sales tax — including on some necessities that Idahoans need — is higher than what corporations pay?
It sounds good: a one-time rebate and a flat tax. But what are the long-term effects on hard-working, everyday Idahoans? I guess we’ll see.
Miranda Marquit, Master of Business Administration, is a nationally recognized financial expert, writer, speaker and podcaster. She is the chair of the Bonneville County Democratic Central Committee and a candidate for state legislature.