BOISE (AP) – The sweeping tax cuts proposed Tuesday by Idaho lawmakers would cut dues from all income brackets and cut sales tax from 6% to 5.3% starting next year .
The complex 17-page proposal was presented to a House committee after Republican Gov. Brad Little called for $ 450 million in tax breaks, including $ 295 million in one-time cuts and $ 160 million in tax cuts. permanent tax. The bill provides that it would result in tax relief of $ 284 million per year.
Despite the pandemic, Idaho has a budget surplus of around $ 600 million. Officials largely attribute this to federal virus relief funds and an influx of new residents.
The bill before the House Revenue and Taxation Committee would also eliminate a grocery tax credit of $ 100 per year for most people and $ 120 for those 65 and over. It would leave in place sales taxes on groceries.
Lawmakers estimate that eliminating the grocery credit would save the state about $ 165 million in fiscal years 2022 and 2023. The plan would also tap into a tax relief fund of about $ 100 million per year. This money comes from sales taxes on online sales.
The proposal would reduce all income tax brackets and raise the top bracket from 6.925% to 6.5% retroactively to January 1.
Sales tax, income tax, and corporate tax cuts would cost the state approximately $ 265 million in fiscal year 2022 and $ 435 million in fiscal year 2022. fiscal year 2023, according to the legislation.
The bill estimates that all of the arrangements taken together would leave Idaho with a budget surplus of $ 100 million in fiscal years 2022 and 2023.
The bill is sponsored by Republican House Speaker Scott Bedke and House Republican Majority Leader Mike Moyle. In addition, Republican Representative Steven Harris and Republican Senator Jim Rice are listed as sponsors.