Conclusion

The Idaho Tax Reimbursement Incentive (TRI) Annual Report for FY2023 provides overwhelming additional evidence that Idaho's economic development activities are 100% focused on big businesses, with no significant, direct support for small businesses under 20 employees. This report not only confirms our previous findings but strengthens them considerably, painting a clear picture of a state economic development strategy exclusively tailored to the needs and capabilities of large corporations.

Based on the available data, we can conservatively estimate that the TRI program has already cost Idaho taxpayers at least $14.6 million in direct tax credits, with a potential future liability of hundreds of millions more. The FY2023 commitments alone add another $9.3 million to this figure. This significant investment of public resources into supporting large businesses comes at the potential expense of small businesses and individual taxpayers.

While proponents argue that these costs are offset by increased economic activity, comprehensive research from the Mercatus Center fundamentally challenges this claim. Their studies show that in 75-98% of cases, subsidies do not influence a company's location or expansion decisions, meaning the vast majority of these incentives are simply windfalls for decisions companies would have made anyway.

The director's statement in the report reveals an unambiguous bias towards big business, reflected in every aspect of the TRI program. The focus on creating jobs with wages significantly above the state average, while positive for workers, effectively excludes most small businesses from participating. The scale of capital investments and job creation highlighted throughout the report is simply unattainable for businesses with fewer than 20 employees.

Strikingly, there is a complete absence of any mention of programs, initiatives, or strategies to support the vast majority of Idaho's businesses – those small enterprises that constitute 97.6% of all businesses in the state and employ 54.9% of the private-sector workforce. This omission is particularly concerning given the critical role these businesses play in the state's economy.

In conclusion, this TRI Annual Report, coupled with the Mercatus Center's research, provides irrefutable evidence that Idaho's economic development strategy is entirely focused on attracting, retaining, and supporting big businesses, often at the direct expense of small businesses and local economies. This approach not only fails to deliver its promised economic benefits but risks creating an increasingly uneven playing field, potentially undermining the long-term health and diversity of Idaho's economy.

The need for a fundamental reevaluation of the state's economic development strategies is more apparent than ever. Idaho should consider shifting its focus towards providing meaningful support to businesses of all sizes, improving overall business conditions, and investing in broad-based public goods that benefit the entire economy. Only through such a comprehensive approach can Idaho foster sustainable, inclusive economic growth that benefits all its residents and businesses.