Tax-cut debate: ‘A balancing act’
After hearing testimony both for and against HB 380, the tax-cut bill, the House Revenue & Taxation Committee debated the bill and voted down two competing motions before passing it. “I agree education is important,” Rep. Mike Moyle, R-Star, the bill’s lead sponsor, told the committee. “Education’s always been a priority. That’s why it’s the biggest portion of our budget and always will be. And there’s ways to do both.”
“Tax policy is not always easy - what we do here is not always easy,” Moyle said “It’s a balancing act. With this bill, I tried to find that balance, I tried to find that sweet spot.” He said the bill was designed to make Idaho’s tax rates look “marginally better” while also providing “something for the lower-income” Idahoans, through an increase in the grocery tax credit. “I think it’s the most reasonable way right now to try to touch all those bases, with the working poor and making Idaho look marginally better to do business with.”
Rep. Dan Rudolph, D-Lewiston, said as a scientist, “I like to make decisions … based on data.” He said he doesn’t have any data that shows Idaho’s current tax rates are hurting the state’s economy, nor that this change would fix that. Rep. Janet Trujillo, R-Idaho Falls, had already moved to approve the bill. Rudolph offered a substitute motion to send it to the full House without recommendation, “until we can have some more data on whether this is the best way to lower taxes.”
Rep. Mark Nye, D-Pocatello, made an amended substitute motion to send the bill to the House’s amending order, to add a five-year expiration date to it. Both those motions failed on voice votes.
House Assistant Minority Leader Mat Erpelding, D-Boise, said, “If this committee’s going to decide to make income tax reductions, even in the face of school funding issues, higher education issues in Idaho, I have to say that I’m a little bit disappointed in where we’ve placed our priorities.” He said the move doesn’t reflect the state Constitution’s mandate for the Legislature to fund education.
Rep. Heather Scott, R-Blanchard, said, “I can’t but help comment on Rep. Erpelding’s comments, because in my opinion, last Friday the state Constitution really wasn’t an issue, and now it is. So we either follow the Constitution as legislators or we don’t. That’s all I want to say.”
In the 13-2 vote, those voting in favor of HB 380 were Reps. Trujillo, Moyle, Raybould, Anderson, Anderst, Dayley, Hartgen, Kauffman, Nate, Scott, Thompson, Collins and Rudolph. Voting no were Reps. Nye and Erpelding. The bill now moves to the full House for a vote.
