Record Idaho tax cut clears House, heads to Senate

By KEITH RIDLER

Associated Press

BOISE — Idaho’s largest-ever tax cut cleared the House on Thursday and headed to the Senate.

The House voted 57-13 with no Democratic support to approve the $600 million cut that includes $350 million in rebates and $250 million in ongoing tax cuts for people and businesses.

Backers said the tax cuts return money to the people who paid it. Opponents said the tax cuts mostly benefit the wealthy at the expense of basic government services such as education.

The $350 million is coming in part from the state’s $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 reduce income tax rates, including dropping the top rate from 6.5% to 6%. People making more than about $8,000 and couples making more than about $16,000 are in the top tax bracket in Idaho, meaning Idaho income tax is essentially a flat tax with most paying the same rate.

Corporate income taxes under the bill would also be cut from 6.5% to 6%. Backers of that cut said it would keep Idaho competitive with surrounding states in attracting businesses.

The individual and corporate tax cuts would be retroactive to Jan. 1.