On Too Little

From Eye on Boise:

With a unanimous vote, the House Revenue & Taxation Committee has voted to introduce a grocery tax credit increase with a complicated mechanism that would give the poorest Idahoans a bigger boost, but still would give all Idahoans an increase. The change would cost the state budget $23.8 million the first year, another $18.1 million the year after, another $16.4 million the year after that, and it would continue to rise, though the increases could be halted by lawmakers due to economic conditions. Under the bill, Idahoans whose taxable income is only $1,000 or less a year would get a $55 per person grocery tax credit next year, while anyone making more than that would get $30 per person. The current credit is $20. The bill also extends the grocery tax credit to those who make too little to be required to file income tax returns; they’re excluded from the current credit.

The sponsors deserve credit for not raising taxes on the middle class like Governor Otter’s plan called for and for getting a tax cut in for those who don’t earn enough to file income tax but pay for taxes on their groceries. 

However, for Middle Class Idahoans, the deal approaches the level of inconsequential. As the doorman told the Duke Brothers in Trading places, “Maybe I’ll go to the movies… by myself,”

 However, I don’t blame the legislative sponsors, I blame a tone deaf governor who really wouldn’t agree to support anything more. 69% of Idahoans don’t want to be taxed on groceries, a $10 increase in the tax credit, like the last $5 increase isn’t going to change that. 

Let me just say, “Listen to the people and repeal the blasted tax on groceries!”

UPDATE:

The plan is a little better than Betsy Russell described it. The actual bill increases it ten more dollars in 2009 and 2010 and then indexes it for inflation.  The legislature’s taking a good step, but I don’t think it’s enough.