A House panel moved proposed tax cut legislation to the full House on mostly partisan lines Monday with a recommendation to approve it.
The bill from Majority Leader Mike Moyle would trim Idaho’s top two personal income tax rates by a tenth of a percentage point, to 7.3 and 7 percent, and cut the corporate tax rate by the same amount, to 7.3 percent. A $10 increase in the grocery tax credit per person – to $110, or $130 for seniors – would apply to those whose incomes fall below the top rates. Currently, that level is $7,260.
“Tax policy is not always easy. It’s a balancing act,” the Star Republican said. “With this bill I tried to find that balance.”
Only a half-dozen speakers testified. Those who opposed the cuts said they would benefit wealthier Idahoans more than the poor. Despite recent increases in state funding for education and infrastructure, opponents said cutting taxes was unwise fiscal policy for the long-term.
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“This tax cut would give me personally $23 worth of tax cuts,” said Donna Yule, executive director of the Idaho Public Employees Association. “I can’t speak for every other Idahoan, but I’d sure rather see the state keep that $23 and put it toward educating my grandchildren or repairing our highways and bridges.”
Business and taxpayer groups spoke in favor. Ben Davenport, president of the Associated Taxpayers of Idaho, said his group’s analysis showed the tax cut would benefit 76 percent of all filers with taxable income, lowering taxes for 331,000 and raising the grocery tax credit for 15,500.
“While it is a modest reduction, you are touching a vast majority of the income tax payers here,” Davenport said.
Taxpayer group supports cuts
The Association of Idaho Taxpayers looked at how the proposed tax cut bill would affect taxpayers at different income levels.
Current Tax Liability
Proposed Tax Liability
Family of four
Single (at top rate)
Family of four (at top rate)
Family of four