A proposal to cut the Idaho income tax squeaked through a Senate committee Wednesday, moving to the full Senate for possible changes over the opposition of the committee’s chairman.
The bill from House Majority Leader Mike Moyle, R-Star, would cut the state’s top personal income tax rate and corporate tax rate to 7.2 percent from 7.4 percent. It also would exempt the first $750 of a person’s income from taxation. The measure passed the House Feb. 2 on a straight party line vote, 58-11.
A Moyle plan won House approval last year before dying in the same Senate tax committee. This year, though, with the state’s coffers brimming and its economy robust, Senate committee members said they were willing to take a closer look.
“I think it would be sad if we left this session without some tax relief,” said Senate President Pro Tem Brent Hill, R-Rexburg.
Hill, however, said he wanted to see changes to Moyle’s bill and moved to send it to the Senate floor for possible amendments. He said would prefer to see all seven of the state’s income tax brackets cut by one-tenth of a point, not just a bigger cut to the top rate.
The committee approved Hill’s motion. Committee Chairman Dan Johnson, R-Lewiston, said he would have voted to kill the bill outright but supported sending it to the floor for possible amendments.