Betsy Russell reports a $36 million tax cut for Idaho’s top earners is roaring through the Idaho Legislature, backed by Gov. Butch Otter and co-sponsored by a majority of the members of the Idaho House.
The move comes even as Idaho’s reeling from three years of deep budget cuts to everything from schools to Medicaid, very few of which are being restored.
“The governor has recommended that we not collect this money, that we’re collecting too much,” said Rep. Marv Hagedorn, R-Meridian, one of the bill’s 40 house co-sponsors; the Idaho House has 70 members.
“It’s probably the best economic development bill we’ve seen all year,” declared House Majority Leader Mike Moyle, HB 563’s lead sponsor. The bill passed the House on a 49-20 vote today and now heads to the Senate.
Otter opened the door to the tax cut by challenging lawmakers at the start of this year’s legislative session to enact $45 million in unspecified tax cuts. This proposal, at $35.7 million, is slightly less, but so is the figure lawmakers adopted for the state budget next year; they set a revenue forecast $33.3 million below the governor’s, meaning they have that much less to spend, whether for tax cuts, state services or to refill the state’s drained reserves.
