Generally, the system should be economically neutral. Balanced systems also provide a degree of stability and predictability for businesses in helping them anticipate their tax liabilities and for governments who need to plan future revenue trends. In a balanced tax system like Idaho s, any decrease in one tax is off-set by an increase in one or more of the other revenue sources, or a decrease must be matched by a corresponding decrease in public services. Stability and predictability over several years is particularly important in states like Idaho which have significant agricultural and other cyclical industries which dominate their economies. In the event of a tax reduction, any decision about increasing a regressive tax should be taken with great caution.
Sales taxes are regressive in their impact on low income groups.
Expanding the base of sales tax revenue by taxing goods and services currently exempted from the sales tax could be considered as an alternative, as it is less regressive and more equitable than other measures. Tax Burden Taxes represent a burden on the citizens and businesses within a state. Currently, Idaho enjoys the lowest tax burden per capita of any of its neighboring states. Within this balance are differences in reliance upon the major tax sources. Idaho ranks below other western states on the amount of government expenditures per capita .