Regressive Wealth Transfer

Idaho's incentive programs effectively transfer wealth from average taxpayers to large corporations and their shareholders. This exacerbates economic inequality rather than promoting broad-based prosperity. The Mercatus research highlights that these subsidies often benefit wealthy investors and corporate executives at the expense of the general public[11].

This wealth transfer occurs through multiple channels:

Tax shifts

Tax breaks and direct subsidies reduce the tax burden on large corporations, shifting it to other taxpayers or reducing public services[12].

Increased inequality

The increased profitability of subsidized companies primarily benefits shareholders, who tend to be wealthier individuals[13].

Local business disadvantage

The focus on attracting large, often out-of-state corporations can disadvantage local small businesses, further concentrating wealth[14].

In Idaho, this regressive wealth transfer is particularly concerning given the state's large proportion of small businesses. By focusing incentives on large corporations, Idaho is disadvantaging the small businesses that form the backbone of its economy. This approach not only fails to promote broad-based economic growth but is actively exacerbating income inequality within the state.