Testimony: Idaho Should Consider Decoupling from the Pass-Through Deduction

Written Testimony to the House Revenue and Taxation Committee, Idaho Legislature February 17, 2018 Chairman Collins, Acting Vice Chair Kauffman, and Members of the Committee: My name is Nicole Kaeding, and I’m an economist and the Director of Special Projects at the Tax Foundation. For those unfamiliar with us, we are a nonpartisan, nonprofit research organization that has monitored fiscal policy at all levels of government since 1937. We have produced the Facts & Figures handbook since 1941, we calculate Tax Freedom Day each year, we produce the State Business Tax Climate Index, and we have a wealth of other data, rankings, and information at our website, www.TaxFoundation.org. I’m pleased to submit written testimony on House Bill 463 and House Bill 558, which deal with updating Idaho’s conformity to the Internal Revenue Code. These bills are similar in many ways, but differ on Idaho’s treatment of Internal Revenue Code Section 199A, created by the…

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