Idaho lawmakers introduce two new tax cut plans
BOISE, Idaho (AP) — Idaho lawmakers have introduced two alternative tax cut plans to Gov. C.L. "Butch" Otter's $200 million tax relief package.
The House Revenue and Taxation Committee agreed Monday to give the alternative tax proposals a full hearing later this session even though Otter's bill has already passed the House.
One proposal — backed by Republican Rep. Vito Barbieri — slashes personal and corporate income tax rates, eliminates the sales tax on groceries and does not conform to recent federal tax changes. The other proposal, backed by Sen. Dan Johnson, is similar to Otter's plan but it would keep the dependent exemption rather than create a $130 child tax credit.
Under Otter's plan, all seven of Idaho's brackets for personal income tax rates and corporate tax rates would be reduced by 0.475 percent. Doing so would lower the state's general fund by $159.6 million. The $130 child tax credit would slash the fund by $42.3 million.