BOISE - A $126 million tax cut proposal swept through the Idaho House on a near-party line vote Monday.
Rep. Neil Anderson, R-Blackfoot, was the lone Republican to oppose the measure, which was co-sponsored by House Speaker Scott Bedke, R-Oakley, and House Majority Leader Mike Moyle, R-Star.
The measure seeks to reduce all corporate and individual income tax brackets by 0.1 percent per year for the next six years, subject to certain conditions. That would lower the top rate from 7.4 percent to 6.8 percent - putting it just under Montana's top rate of 6.9 percent and, according to the sponsors, making Idaho a more attractive location for new and expanding businesses.
Each 0.1 percent reduction has an estimated price tag of $21 million. After the first year, all future reductions would be contingent upon general fund revenues growing by at least 3 percent year-over-year.
"This bill is set up to protect education," Moyle said. "We need 3 percent growth to move forward. That's almost $100 million in growth [sic], and we're giving back $21 million to the people who are paying the bill. I think we can afford it."
Based on current revenue projections, 3 percent growth is closer to $84 million. That also doesn't take into account inflation, increases in school enrollment or the prison population, or other funding needs.
"I want to ask you in your heart of hearts, how this shows the values we have," said House Minority Leader John Rusche, D-Lewiston. "What are people asking for back in our communities? When I talk to people, the first thing they talk about is schools - maybe one that would be open more than four days a week. They also talk about the cost of higher ed, how they can't afford it. They talk about the cost of health care and the condition of their streets. We can cut taxes all we want, but if we truly believe that being above the bottom of the barrel in education funding is important, that getting our kids to go to post-secondary school, that communities should be viable and attractive, I think we have to think of other ways than to approve more tax cuts."
Other than Moyle, no Republican debated in favor of the measure. The bill was approved 54-13, with Anderson and all the House Democrats voting in opposition. It now goes to the Senate for further action, where The Associated Press reports it will likely be held in committee, along with any other tax cut proposals.