Speaker of the Idaho House Mike Moyle announced a plan to lower income taxes on Thursday, referring to it as the first of three significant tax-cutting measures that will be introduced this legislative session.
The House Revenue and Tax Committee decided to propose Moyle’s new bill, House Bill 40, on Thursday. According to Moyle, the bill would have three modifications.
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The bill would reduce the individual and corporate income tax rates from the current rate of 5.695% down to 5.3%, at a cost of $240 million.
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The bill would expand the income tax exemption to military pensions, at a cost of $12 million.
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The bill would eliminate capital gains tax for gold bullion sales, at a cost of $1 million.
According to Moyle, this increases Idaho’s competitiveness. You put some cash back into the pockets of the people and force businesses to consider Idaho, saying, “Well, the rates are lower here and it’s more competitive than other states.” It is beneficial to all taxpayers and a setback for the state of Idaho.
Earlier this month, Idaho Governor Brad Little called for $100 million in tax cuts at his State of the State address.
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“I want to go even further,” Moyle remarked.
“I think we can do more together, but I appreciate (Little) offering $100 million,” Moyle added. This is the beginning, and by the end of the session, I hope we have between $350 million and $400 million. Other tax relief legislation will be presented to this committee in the days ahead. It has to do with income tax. The one after that will deal with sales tax, and the third one will deal with property tax changes.
Rep. Steve Berch, D-Boise, voiced his apprehension about implementing the more significant tax cuts Little suggested without first examining the impact on the broader fiscal picture.
A more comprehensive fiscal study is what’s lacking, according to Berch. We can discuss the amount of money we wish to remove from the table, but before we decide, I would like to know what our financial responsibilities are so that I can determine whether we can afford this.
The bill’s introduction makes it possible for it to be heard in full by the House Revenue and Taxation Committee.
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