Critique of Herndon's Tax Plan Questions Idaho State Budget Stability
What happened
A retired CPA reviewed Herndon's property tax plan for Idaho. The plan projects state revenue growth of 5.5% annually over ten years, driven by inflation and an increase in population. However, the CPA argues that when accounting for increased operational needs across a larger population, the projected surplus disappears, potentially leading to significant service cuts.
Why it matters
The plan's reliance on specific revenue projections and its failure to account for increased operational costs for a growing population raise questions about the long-term fiscal stability of Idaho state services. The analysis suggests that spending per student, patient, and trooper could decrease by about 21% in year ten under the proposed model.
Idaho is proposing a major overhaul of its tax structure, which includes eliminating property taxes and increasing sales taxes.
Who's involved
- IdahoState where the tax plan is proposed
- HerndonOrigin of the specific property tax plan under review
- Brad LittleGovernor of Idaho, whose fiscal policy is challenged by the plan
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Idaho Department of LandsSpeculative
The Idaho Department of Lands may face changes in operational budgets due to altered state revenue projections.