One of the routine bills at the Idaho Legislature every year – every year for decades at least – is the tax match bill.
Every year, the Internal Revenue Service changes the rules, in ways large or small, for federal income taxes. And each year, reliably, Idaho follows suit, for the same reason other states imposing income taxes do: If they did not, residents and organizations would have to cope with far more complicated bookkeeping, trying to deal with two different tax standards. Are taxes a hassle for you? Failing to keep state rules in step with the federal would double the hassle factor.
Sometimes those changes do result in revenue changes for the state, either up or down. This year, a newly-allowed federal deduction on equipment buys by small businesses apparently could cost the state $22 million next year. It’s not a huge ding in the context of the state budget, but it was enough to get mentioned when the IRS compliance bill came before the House tax committee.
Three committee members voted against the bill because of the change allowing joint filing by same-sex married couples.
Actually, in the current environment there’s a little surprise that this normally routine bill doesn’t become a cause celebre, with protests and nullification and all. After all, this is an issue with “federal” and “tax” written all over it.
Maybe though some legislators reflected on just how difficult filing their own taxes could become if the state doesn’t fall in line. – rs (image/efile)Share on Facebook