Mountain States Policy Center Vice President and Director of Research Jason Mercier issued the following statement on the Senate adoption today of HB 40 (income tax cut): “By passing HB 40, Idaho lawmakers are continuing to prioritize additional income tax relief to grow the state’s economy and ensure that local businesses remain competitive with those across the region. Along with individual tax relief, it is important to not overlook the impact of corporate income tax cuts on increased economic activity including more business investment, increased employment and higher wages.”

Here are some of the current regional income tax rates:

* Montana - 5.9% (Gov. Gianforte 2025 proposal would drop to 4.9%)
* Idaho - 5.695% (HB 40 reduces to 5.3%)
* Utah – 4.55%
* Colorado – 4.25% (temporary – capped at 4.40%)
* North Dakota – 2.5%
* Nevada/South Dakota/Washington/Wyoming – No personal income tax (though Washington does have a standalone 7% capital gains income tax)

Mountain States Policy Center Vice President and Director of Research Jason Mercier issued the following statement on the Senate adoption today of SB 1117 (updated ballot fiscal impact statement): “The Idaho Senate unanimously approved our recommendation to require an updated ballot fiscal impact statement to help voters have the most recent information they need to make informed decisions. Due to how complicated some citizen initiatives can be and how quickly economic and budget conditions can change, there should be an ability to update these fiscal impact statements if a ballot measure is certified. SB 1117 is a step for improved transparency.”

Mountain States Policy Center President Chris Cargill issued the following statement regarding the adoption of HB 245 by the Montana House:

“Be removing the sunset provision, Montana lawmakers are rolling the dice that Congress won’t change the terms of the Medicaid matching agreement and further increase costs on state taxpayers. It is encouraging, however, to see the continued focus on a work requirement for the able-bodied.”

Mountain States Policy Center President Chris Cargill issued the following statement regarding the proposed education choice tax credit failing in the Montana House:

“It’s surprising to see a conservative state like Montana reject a proposal for an education choice tax credit. This is especially true considering that just this week neighboring states of Idaho and Wyoming adopted enhanced education choice options and President Trump has come out strongly in favor of providing parents more options.”

Mountain States Policy Center President Chris Cargill issued the following statement regarding the increased grocery tax credit passing the Idaho House:

“It is encouraging to see the Idaho House act on our recommendation to increase the grocery tax credit. Combined with the income tax relief proposal also advancing, Idaho lawmakers are taking the steps necessary to protect Idaho’s economic competitiveness while returning more money back to Idahoans.”

Mountain States Policy Center Vice President and Director of Research Jason Mercier issued the following statement on the House adoption today of HB 98 (ending taxpayer subsidies for teacher union activities):

"There are two important principles we should be able to agree on: 1) Taxpayer dollars should be focused on providing essential services, and 2) Teachers engaging in activities for a private membership organization should do so on their own time or have the membership organization reimburse taxpayers for that time if done during the workday. HB 98 helps ensure these principles are met.”

Mountain States Policy Center Vice President and Director of Research Jason Mercier issued the following statement on the House adoption today of HB 40 (income tax cut):

"Idaho’s House took the first step to maintaining economic competitiveness with our neighbors. Idaho is at risk of having one of the highest regional income taxes without further action.

It is also very exciting to see HB 40 include plans to eliminate income tax liability for most military retirement pay. Exempting military retirement pay from income taxes was one of the recommendations made last year by one of our Sawtooth Leadership Academy students. Christopher Sheftic, a sophomore at Lake City High School in Coeur D’Alene, did his Sawtooth Leadership Academy research project on: ‘Growing Idaho’s economy by exempting military pensions from taxes.’

By further reducing the income tax burden and the economic drag these types of taxes create, lawmakers can put families, businesses, and Idaho's economy in a strong position for the best overall tax climate for success.”

Mountain States Policy Center President Chris Cargill issued the following statement regarding universal education savings accounts advancing in Wyoming: "Universal education choice is one step closer to reality in Wyoming with the House passage of HB 199. As President Trump said in his school choice Executive Order, ‘The growing body of rigorous research demonstrates that well-designed education-freedom programs improve student achievement and cause nearby public schools to improve their performance.’”

Mountain States Policy Center Senior Policy Analyst Madi Clark issued the following statement on the Senate passage of Idaho House Bill 14: "Idaho is the leading state in regulatory reform and it is commendable that lawmakers are doing more to reduce the burden of excessive government mandates. The approval of HB 14 will add the needed and beneficial complement of statute review to the already existing rule review process."

Mountain States Policy Center President Chris Cargill issued the following statement regarding the bill that would expand education savings accounts in Wyoming: "It is very encouraging to see HB 199 advance to the Wyoming House floor to provide parents and families with increased education choice options. The $7,000 ‘Freedom Scholarships’ are an important tool for students to pursue the education options that best fit their individual learning needs.”

Mountain States Policy Center President Chris Cargill issued the following statement regarding the bill that would create ed choice scholarships in Washington state: "The exciting proposal would specifically fund ESA’s for low income students, special needs families and students who are trapped in failing schools. The funds would be available via a state-issued debit card, with oversight capability. The money would have to be spent on education, including tuition, fees, textbooks, tutoring, therapies and more. The likelihood of a bill like this passing this coming session may be low. But, considering more than half of states now offer some education choice plan, lawmakers could, at the very least, hold a hearing."

Mountain States Policy Center Vice President and Director of Research Jason Mercier issued the following statement on the legislative adoption today of HB 521 (relating to taxation):

“It is exciting to see Idaho lawmakers continue the state’s ongoing income tax rate reduction efforts to help improve regional economic competitiveness. With this change, Idaho is now in between our friends in Utah who just reduced their income tax rate to 4.55%, and Montana with its two rates of 4.7% and 5.9%.

The combined corporate and personal income tax relief adopted by HB 521 is estimated to be around $59.1 million for Fiscal Year 2025. According to the Tax Foundation, moving from a 5.8% to a 5.695% individual income tax rate will help improve Idaho’s ranking from 33 to 29 for all states and from 24 to 20 for those states where wage income is taxable."

Mountain States Policy Center President Chris Cargill issued the following statement on the Idaho House adopting HB 595 to focus education funding in Idaho on student outcomes:

"At the beginning of the legislative session, we recommended lawmakers require benchmarks and student results for increased education funding. Today, the Idaho adopted HB 595 to phase in outcomes-based funding.

Outcomes-based funding encourages districts to focus on student performance, and not just enrollment or attendance. In the effort to improve the student outcomes, it is a policy worth pursuing."

Mountain States Policy Center Vice President and Director of Research Jason Mercier issued the following statement on the vote in the Washington legislature to ban a state and local income tax (I-2111):

“With the adoption of I-2111, Washington has taken the first step to regain its status as a non-income tax state. The next step will be when voters consider I-2109 this November to repeal the capital gains income tax. With Washingtonians consistently and overwhelmingly rejecting income taxes, the legislature next year should consider placing the new state and local income tax ban directly into the state constitution.”

Mountain States Policy Center President Chris Cargill issued the following statement on the Wyoming House voting 44-18 to advance Education Savings Accounts (HB0166):

“It is exciting to see the Wyoming House act to advance more education choice options for families with approval of Education Savings Accounts (or ESAs). ESA's are one of the most popular forms of education choice. They give parents the power to use their children's state education dollars for a variety of educational purposes.

Education savings account programs create personal accounts that store a child’s state education dollars. With ESAs, parents can use education dollars to pay for school tuition and fees, textbooks, tutoring and special therapies and other approved expenses, so a child’s education is truly customizable. Participating families are able to choose the best education for their children through multiple providers.

It is important to remember that despite the claim from opponents, Education Savings Accounts are not vouchers. In the end, ESAs are made available to parents directly and vouchers are given to schools or a specific institution.”

Mountain States Policy Center Vice President and Director of Research Jason Mercier issued the following statement on the proposal in Washington (I-2111) to ban a state and local income tax:

"I-2111 would implement the clear and consistent intent of Washington voters to stop income taxes from being imposed. Although some believe the state constitution prohibits an income tax, government officials can currently impose up to a 1% tax if uniform. I-2111 would fully close this door and prohibit a state or local income tax of any kind, assuming of course the plain meaning of words is honored (unlike what occurred with the recent capital gains income tax).

For years, the state Department of Commerce advertised the lack of an income tax as being a ‘competitive advantage’ for Washington. To further protect this advantage, along with acting on I-2111, lawmakers should also take the next step and adopt this policy as a constitutional amendment. This is something that Texas and Tennessee recently did to signal to residents and businesses that an income tax is fully off the table. With Washington voters rejecting 10 straight ballot measures to impose an income tax and now qualifying I-2111, it is time for state officials to finally prohibit income taxes.”

Mountain States Policy Center President Chris Cargill issued the following statement on the Federal Trade Commission's decision to sue to block the merger of Albertsons and Kroger:

“The Federal Trade Commission’s decision today will limit competition and only serves to bolster the big three big box competitors in the supermarket industry. The decision is even more troubling considering Kroger’s commitment to not close stores, its plan to lower grocery prices by $500 million on day one of any merger, and its pledge to invest $1.3 billion in Albertson’s stores – an investment that would have directly benefited the Mountain States.”

Mountain States Policy Center Vice President and Director of Research Jason Mercier issued the following statement on the practice in Idaho and Washington of including political messaging on taxpayer refund checks:

"Receiving a refund for overpaid taxes is good. Having those government checks include political messaging is not. Government officials should be commended for prioritizing tax refund checks when taxpayers overpay. The practice of including political messaging on refund checks, however, should be discontinued. Let the checks speak for themselves without turning them into a government-funded political advertisement."

Mountain States Policy Center Vice President and Director of Research Jason Mercier issued the following statement on the proposal for Idaho to provide a statewide voters' guide:

"Voting is one of the most important responsibilities and rights we have as citizens. It can be difficult at times, however, to find the needed information about those running for office who want to represent us. This is why several states authorize their Secretary of State to provide a statewide voters’ guide to help provide these important details.

Along with a traditional printed and online voters’ guide, another resource worth considering is a Video Voters’ Guide. This would allow voters to go to one place to see and hear candidates in their own words about why they are running for office."

Mountain States Policy Center President Chris Cargill issued the following statement on a proposal to focus education funding in Idaho on student outcomes:

"At the beginning of the legislative session, we recommended lawmakers require benchmarks and student results for increased education funding. Now, they will have that opportunity.

House Bill 557 phases-in outcomes-based funding in Idaho.

Outcomes-based funding encourages districts to focus on student performance, and not just enrollment or attendance. In the effort to improve the student outcomes, it is a policy worth pursuing."