The House Rev & Tax Committee has taken up HB 563, the bill to cut Idaho's personal and corporate income tax rates. "It lowers taxes in the state of Idaho, it makes Idaho more competitive with its surrounding states," said House Majority Leader Mike Moyle, R-Star, the bill's lead sponsor, along with Gov. Butch Otter. "It also makes Idaho known on the map and sends th eworld a message that Idaho is open to do business. ... While I don't think it's enough, I think it's a step in the right direction, and it's probably the best economic development bill we've seen all year."

The bill would lower Idaho's top individual income tax rate from 7.8 percent to 7.4 percent, and lower the corporate tax rate from 7.6 percent to 7.4 percent; it would take $35.7 million out of the state's tax revenue stream next year. There are seven senators and 40 House members signed on as co-sponsors of the bill.

Rep. John Rusche, D-Lewiston, said, "This clusters the tax cut at the upper incomes. ... Why does the governor think that this is the best way to serve the citizens of Idaho?" David Hensley, Otter's chief of staff, responded, "The governor believes that this is going to help businesses, small businesses, who also employ those individuals and file under the individual brackets."