House Bill 563 would cut the top individual income tax rate from 7.8 percent to 7.4 percent and the top corporate rate from 7.6 percent to 7.4 percent. It would cost the state an estimated $35.7 million in 2013.
Democrats and eight Republicans opposed the plan.
Democrats like Rep. Brian Cronin (D-Boise) were critical of who would qualify for the tax cut, saying the proposal isn’t targeted for the middle class. “It seems to be an article of faith around here at times, that if we give certain classes of people more money, that they will create jobs,” Cronin said. “What creates jobs, and by extension economic development, is demand.”
