Legislation to cut Idaho's corporate and individual income tax rates by more than a third over the next 10 years is up for an "informational" hearing this morning in the House Revenue & Taxation Committee, though it won't advance this year. Rep. Marv Hagedorn, R-Meridian, told the committee that Idaho's taxes are too high, and are higher even than Japan's, and said that's why the state currently has such high unemployment. Hagedorn is sponsoring the tax-cutting bill, HB 707, with House Majority Leader Mike Moyle, R-Star; they also have a list of 29 cosponsors, all Republican lawmakers, including three from the Senate and 26 from the House. Rep. Janice McGeachin, R-Idaho Falls, cited various rankings that show Idaho ranks poorly for a business-friendly tax environment - though the state Tax Commission's latest national comparison shows that Idaho's overall tax burden ranks 46th nationally, and 11th regionally out of 11 western states.

Interestingly, the bill's backers are making an argument opposite to what Gov. Butch Otter made in his recent "love letter" to Washington and Oregon businesses, urging them to move to Idaho: That Idaho has low taxes and is business-friendly. At the end of the hearing, Chairman Dennis Lake, R-Blackfoot, asked for a motion to hold the bill in committee, and it passed on a voice vote.