House Majority Leader Mike Moyle, R-Star, persuaded the House Revenue & Taxation Committee this morning to send the unemployment insurance tax cut bill, SB 1195, the House’s amending order to tack on an income tax cut. The move carried on an 11-5 vote in Rev & Tax; Republican Reps. Ron Nate, Caroline Nilsson Troy and Greg Chaney joined Democratic Reps. John Gannon and Mat Erpelding to oppose the move.

Moyle said he wants to “add back in an income tax reduction of 1/10 to all the bands, similar to what Senate leadership tried to do in its amendments to HB 67.”

“Unlike the bill, this affects every income taxpayer in the state of Idaho,” Moyle declared. “This would make it so not only businesses see a break, but every income taxpayer in the state of Idaho. It’s similar to the amendments proposed (unsuccessfully) on the Senate side,” with a fiscal impact of $27.9 million per year.

Chaney said, “This exact proposal … was presented in the Senate, and the body of the Senate specifically rejected this amendment. The bill as it’s written is good policy, businesses need it, and to specifically introduce into it policy that has been specifically rejected in the Senate, I think is not to be a very good listener.”

“When we show that we’re not only not listening, but we really frankly don’t care what the Senate already has stated through their votes, I think we set ourselves up for failure,” Chaney said.

Moyle countered, “Let’s make it clear. The Senate had agreed to that, and it got hijacked by a bill to take sales tax off groceries.” He said he thought the Senate would have agreed to the smaller, 1/10 income tax cut, “if you would’ve had a straight-up vote. … This bill and these amendments would have passed.” He added, “I have a hard time saying when we leave this body, saying if you’re a business owner we’re going to cut your taxes, but if you’re an income taxpayer,” we’re not. “I think your concerns are unwarranted,” he told Chaney.

Nate said he thought the amendment would violate the Constitution’s single-subject rule for bills, but Moyle said he had an Idaho Attorney General’s opinion provided earlier to the Senate saying it wouldn’t. “They do fit together,” he said. “It’s good policy, it’s a positive policy, and by doing these changes you can affect all taxpayers in Idaho that pay income taxes.”

Moyle said he’s hoping the House can go to its amending order today to add the income tax cut to the unemployment insurance rate reduction bill.

Mark Warbis, Gov. Butch Otter's communications director, who presented SB 1195 to the committee, said afterwards, "It's part of the legislative process, and we respect their deliberations. We're confident it'll all work out for the best."

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