Weekly Column: Idaho--The Place To Do Business

I recently had the opportunity to join in celebrating the growth of an Idaho company.  Chobani is greatly expanding its investment in the Magic Valley.  This success is a reminder of how Idaho businesses help so many parts of our communities, beyond those they directly employ.  These developments have ripple effects through Idaho’s food bank, education, agriculture and other communities.  I welcome the opportunity to advance federal policy that ensures Idaho remains one of the best places in the country to do business.

Idaho’s combination of low taxes and a commonsense regulatory environment make it appealing to small and large businesses alike.  I commend Governor Little and his Cabinet for all their work to ensure Idaho continues to be a business-friendly state.  Local leaders and their support of Idaho’s booming value-added economy, agricultural base and other innovative sectors have made Idaho an attractive place to build, invest and expand.

As Chairman of the U.S. Senate Finance Committee, I am working at the federal level to make sure our tax and regulatory system reflects Idaho’s formula for success.  Key to this effort is maintaining existing, pro-growth tax policy and preventing a massive federal tax increase from going into effect next year. 

In 2017, Republicans made generational reforms to the tax code that strengthened investment, boosted economic growth, and increased take-home pay, with the lowest-income workers experiencing the largest wage growth.  Unless Congress acts by the end of this year, many of these reforms will expire and Americans will be hit with a more-than $4 trillion tax hike.  The majority of this burden will fall on those making less than $400,000 per year, meaning Idaho’s workers and small businesses will be hit hardest.  

If the Trump tax cuts of 2017 are not extended:

• Idahoans’ taxes could increase by about $2,500 on average, or eight weeks of groceries. 
   
• The 20 percent pass-through deduction will expire for small businesses.  
   
• According to the National Association of Manufacturers, expiration could cost manufactures in Idaho:  

• • 33,000 jobs
  • $3 billion in wages
  • $6 billion in gross domestic product (GDP)

• The child tax credit will be cut in half. 

• The standard deduction, which 90 percent of taxpayers claim, would be cut in half.

• The death tax exemption would be reduced by half, undermining the ability of family farms and small businesses to be passed along to future generations. 

The Senate recently passed legislation that lays the groundwork to deliver on what President Trump calls “one big, beautiful bill” that would invest in securing the border, provide additional support for national defense, boost energy production, and, importantly, permanently extend and build on Trump’s tax cuts.

Making this tax policy permanent will provide Idaho’s businesses with the certainty they need to make long-term investments that drive growth and will also provide the stability that families need as they save and plan for the future. 

The Council of Economic Advisers estimates permanently extending the Trump tax cuts, combined with other pro-growth policies, will yield:

• 3 percent annual real GDP growth rates over the next 10 years;

• $4 trillion in additional revenue;

• $2,100 to $3,300 annual real wage increase per worker;

• $4,000 to $5,000 increase in median-income household take-home pay;

• 4 million full-time equivalent jobs saved;

• $100 billion investment in distressed communities; and many other benefits.

Idaho serves as a shining example of how good governance and sound policy can promote investment, boost growth, and power a booming economy.  As Idaho businesses invest in our communities, I will continue to work to deliver the certainty and stability in our tax code our state’s businesses need to thrive.

# # #