Adam’s Blog

That’s my thing, keepin’ the faith, baby. –Joe Friday

Fun With Numbers: What the Otter Tax Plan Would Mean To Me

Posted by Adam Graham on March 14, 2007

A lot of people have discussed that Governor Otter’s grocery tax plan would eliminate the Grocery Tax credit on those earning above $50,000. But what does this mean for your family. How much of a cut will you get. Many Idahoans not earning $50,000 a year are in for some cuts, and that $90 tax credit is going to be a little hard to lay your hands on. How much money do you have to earn before you’re too rich for a tax credit or start getting an increase in taxes? Based on the governor’s plan here is what you’ll get depending on your situation:

Single:

$90…If income is less than $9,150
$80…If income is less than $10,150
$70…If income is less than $11,150
$60…If income is less than $13,150
$50…If income is less than $16,150
$40…If income is less than $19,150
$30…If income is less than $23,150

$20…If income is less than $28,150
$10…If income is less than $34,150

Above that, you are far too rich to get a tax credit.

What about Married people:

Married:

$90…If income is less than $17,900
$80…If income is less than $18,900

$70…If income is less than $19,900
$60…If income is less than $21,900
$50…If income is less than $24,900
$40…If income is less than $27,900
$30…If income is less than $31,900
$20…If income is less than $36,900
$10…If income is less than $42,900

$42,900 is rich for a married couple. So rich you don’t get a tax credit at all.

Married with two children:

$90…If income is less than $24,500
$80…If income is less than $25,500
$70…If income is less than $26,600
$60…If income is less than $28,600
$50…If income is less than $31,600
$40…If income is less than $34,600
$30…If income is less than $38,500

$20…If income is less than $43,500
$10…If income is less than $49,500

Above $49,500 you lose any credit for the amount you pay in grocery taxes.

Single with one child:

$90…If income is less than $12,450
$80…If income is less than $13,450
$70…If income is less than $14,450

$60…If income is less than $16,450
$50…If income is less than $19,450
$40…If income is less than $22,450
$30…If income is less than $26,450
$20…If income is less than $31,450
$10…If income is less than $37,450

So, let’s define this now in some easy terms:

Who gets a tax cut:

Single Parents earning less than $26,450 a year.
Married Pearnts earning less than $38,500 a year.
Married People without children earning less than $31,900
Single People earning $23,150

Who gets a tax hike:

Single Parents earning more than $31,450
Married Parents earning more than $43,500

Married People without children earning more than $31,900
Single People earning more than $28,150

Governor Otter’s proposed grocery tax credit was killed in committee because it’s harmful to the middle class. It should not be brought back, period.

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