The Idaho legislature is considering a new bill that would cut income tax rates for top-earners and corporations. The bill is the first of its kind in this year’s session.
Idaho House majority leader Mike Moyle is the bill's sponsor. The Republican from Star says the state should lower income taxes for the highest earners, and increase the grocery tax credit by $10 a person. He also proposed a cut to corporate taxes, saying his proposal will benefit lower-income earners as well as people at the top.
But a study by the Idaho Center for Fiscal Policy shows how the cuts would complicate priorities identified by other legislative leaders.
“What the legislature will have to weigh," says Lauren Necochea, the director of the center, "is whether this is a tax cut their constituents want and whether it’s affordable in light of the other expressed priorities.”
Nechochea says the proposal would decrease the state’s general fund revenue by almost $28 million. She says lawmakers are facing multiple pressures this session, including funding the teacher career ladder – which increases teacher pay over time.
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