Idaho House Approves Permanent And One-Time Tax Cuts
The Idaho House today [Thursday] approved a two-part tax relief bill.
One part would provide residents with a one-time rebate check later this year. Residents who filed a state tax return in 2019 would get back nine-percent of the amount they paid or $50, whichever is more.The second part would reduce the number of tax brackets from seven to five and permanently lower the tax rates in all of them.
Supporters say the state has a healthy surplus right now and it’s time to return some of it to taxpayers.
Opponents, such as Rep. Ilana Rubel [D-Boise], say a better plan would be to spend more of that surplus to improve public schools. Or, she says, pick a more equitable way to give back money.
“This is still a bill that gives more than a $9,000 tax cut to the top one-percent, while giving about a $75 tax cut to people in the lower 20%," she said.
Supporters of the cut say the people in the top tax bracket pay 97-percent of state income taxes so it’s logical that they see the biggest return.
This is a new version of a bill that’s been bouncing around the legislature all session. It moves next to the Senate for consideration.