For 2nd consecutive year, Idaho's wealthiest would get largest tax cuts in new GOP bill

A new bill would provide Idaho’s highest earners with the largest tax cuts for the second consecutive year.

A GOP proposal for individual and corporate tax cuts would reduce the top-bracket income tax rate — $5,000 or more in taxable income — as well as the corporate tax rate from 6.5% to 6%. It would also provide tax rebates dependent on earnings. The more taxable income an Idaho resident had in 2020, the larger the rebate.

Republican Gov. Brad Little announced the tax cuts Monday during his State of the State address, and lawmakers quickly pushed the proposal through a committee Wednesday — the first bill introduced in the 2022 session. The proposed cuts come as the Legislature mulls how to spend a $1.9 billion surplus, which is made up, in part, of increasing income tax revenues.

Sponsored by Rep. Steven Harris, R-Meridian, House Bill 436 sets aside $350 million for rebates, which would cover either 12% of someone’s 2020 income taxes or $75 per taxpayer and dependent, whichever is greater.

Read more at: https://www.idahostatesman.com/news/politics-government/state-politics/article257246522.html