The House Revenue & Taxation Committee is holding its hearing this morning on HB 548, House Majority Leader Mike Moyle’s bill to cut state individual and corporate income tax rates, in all brackets, by a tenth of a percent each year for the next six years, at a total cost by the end to the state general fund of $126 million. The bill includes “triggers,” saying that if in any year the state’s general fund revenue doesn’t rise by at least 3 percent, the next increment wouldn’t be imposed.
“It’s pretty simple, it’s a fair tax,” Moyle told the committee. By “lowering all the bands” the bill would benefit all income levels, Moyle said. “We’re not punishing one group over another, it doesn’t pit anybody against anybody.” Idaho’s last state income tax cut was only for the highest earners.
John Watts, lobbyist for the Idaho Chamber Alliance, is now presenting details on the bill; you can listen live here. Both he and Moyle said the aim is to get Idaho's top rate down from the current 7.4 percent to 6.8 percent by the end of the cuts, lower than Montana's 6.9 percent rate.