Business leaders worried Idaho's tax rates are too high compared to its neighbors notched an initial victory when the House Revenue and Taxation Committee approved a bill aiming to make the state more competitive.
The Republican-led panel voted Thursday to back the Idaho Chamber Alliance's proposal to cut corporate and individual income tax rates by a percentage point annually over the next six years, for an eventual $125 million cost.
Once completed, it would leave Idaho's top tax rate at 6.8 percent, lower than Montana's 6.9 percent.
Gov. C.L. “Butch” Otter is spending part of his week in Coeur d’Alene at Idaho’s largest business lobby’s annual convention. Gov. Otter’s spokesman says one of the administration’s main goals for the next legislative session is to pass a third-consecutive year of tax cuts.
A left-leaning tax policy group recently put out a short little report about the state corporate income taxes paid by IDACorp. That’s the holding company of Idaho’s largest electric utility, Idaho Power.
The report claims IDACorp paid no state income taxes nationwide from 2007 through 2011.
Republicans are proposing their own plan to avoid the "fiscal cliff" at the end of this month. That's when Bush-era tax cuts will expire and automatic spending cuts begin.
The GOP plan would raise the eligibility age for Medicare, lower cost-of-living hikes for Social Security benefits and add $800 billion in higher tax revenue. The White House unveiled a plan last week.
The 2012 Legislature adjourned late last week, accomplishing its only constitutional duty, which is to pass a balanced budget. StateImpact Idaho’s Emilie Ritter Saunders has watched the budget process closely. Saunders told Samantha Wright there weren’t many surprises this session, but there were a couple of things that didn’t pan out, including creating a state health care exchange.
Idaho lawmakers wrapped up the 2012 session Thursday. The House of Representatives adjourned first. The Senate took much longer as lawmakers signed off on key pieces of legislation and said their goodbyes.