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Northwest News Network

Modest State Income Tax Cut Teed Up In Idaho Legislature

A view of the Idaho State Capitol from Downtown Boise
A view of the Idaho State Capitol from Downtown Boise

A panel of the Idaho House of Representatives voted Tuesday to add a state income tax cut to the legislative session agenda.

A proposal from Republican leadership would shave one tenth of a percentage point off of the top personal income tax rates and corporate income tax. It would also increase the grocery tax credit by $10 for low income Idahoans.

"Listen: We've grown government by a lot of money a bit over the last few years. It's time we gave back a little bit,” House Republican Majority Leader Mike Moyle said. “This isn't as much as I would like to see. But it is a little bit and it touches all those bases that help make Idaho look better competitively nationally to bring businesses here, while at the same time taking care of those on the lower end of the economic scale."

Democrats on the House taxation panel posed skeptical questions to Moyle about how a tax cut would affect another Idaho session priority: Boosting public school funding. Moyle said his tax cut proposal "doesn't affect education at all depending on how you arrange the money in the budgets."

Meanwhile in the Washington Legislature, a lone Democratic senator reintroduced a perennial bill to ask voters to create a state income tax. Washington state does not have a personal income tax and past efforts to establish one have failed.

Copyright 2016 Northwest News Network