Record Idaho tax cut clears panel, heads to House for vote
BOISE, Idaho (AP) — A panel of lawmakers on Tuesday signed off on the state’s largest-ever tax relief package.
The House Revenue and Taxation Committee voted to send the $600 million tax measure to the full House.
The bill includes a $350 million rebate for 2020 income tax filers and $250 million in ongoing income and business tax cuts.
The $350 million rebate is coming in part from the state’s record $1.9 billion budget surplus. It includes a 12% rebate for 2020 filers or $75 per taxpayer and dependent, whichever is greater.
The ongoing tax cuts come from cutting the number of tax brackets from five to four and reducing the rate for each of them. It includes dropping the top rate from 6.5% to 6%. Individuals making more than about $8,000 and couples more than about $16,000 are in the top bracket in Idaho.
Corporate income tax would also be cut from 6.5% to 6%.
Opponents say the tax cuts mostly benefit the wealthy.
Idaho Republican Gov. Brad Little generally doesn’t comment on pending legislation. But he sent his policy director and his budget chief to testify at the hearing to publicly signal his support for the bill.
COPYRIGHT 2022 THE ASSOCIATED PRESS. ALL RIGHTS RESERVED. THIS MATERIAL MAY NOT BE PUBLISHED, BROADCAST, REWRITTEN OR REDISTRIBUTED.