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GOP Majority Pushes Tax Cut Bill Through Idaho House Panel

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STOCKMONKEYS.COM
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The Republican supermajority on the House Revenue and Taxation Committee voted Tuesday morning to move a proposed tax cut for Idaho's wealthiest residents to the full House.

HB 67, sponsored by House Majority Leader Rep. Mike Moyle (R-Star), would lower Idaho's top tier for personal and corporate income tax rate from 7.4 percent to 7.2 percent, and would exempt the first $750 of income from taxation. If approved, Moyle said the bill would drain the state's general fund of approximately $51.2 million each year.

The bill passed through the committee on a 14-2 party-line vote, with Democratic Reps. Mat Erpelding (D-Boise) and John Gannon (D-Boise) voting "no."

"Rep. Moyle’s bill will give the top 1 percent a tax cut of $1,562—a nice vacation," said Erpelding, the House minority leader. "Middle class families will see almost no relief but will be guaranteed an additional tax increase at the local level to fund their schools."

The nonpartisan Idaho Center for Fiscal Policy has issued its own examination of the proposed measure, concluding that fewer dollars in the general fund could easily mean fewer dollars for public education.

"Lawmakers have expressed priorities that require additional funding, such as making good on the teacher career ladder commitment and bolstering rainy day funds to prepare for the next recession," said Center for Fiscal Policy Director Lauren Necochea. "The Legislature will have to weigh whether this tax cut is affordable in light of other stated priorities.”

Read the full analysis here:

See related PDF HB67-Analysis-17jan30.pdf

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