House opens tax-cut debate…

The House has opened debate on the tax-cut bill, HB 563, which lowers top individual income tax rates and the corporate tax rate. “This sends a very clear message,” said House Majority Leader Mike Moyle, R-Star. “This is not our money, this is money we collect from the population to provide services. I believe and I think you believe that the people that pay this money spend it much better than we can or we will.”

Rep. Bill Killen, D-Boise, said collecting money from the population to provide services is lawmakers’ job - it’s setting the tax policy for the state. “For the last several years we’ve prided ourselves on being frugal, prudent and cautious,” he said. “Apparently caution is being thrown to the wind with this bill.” Killen said, “We have no knowledge that we can afford it in continued years, and yet we’re willing to roll the dice and hope for the best,” much as the Legislature did under a previous governor, Dirk Kempthorne, in the early 2000’s, when it enacted a permanent tax cut from a one-time budget surplus, after which lawmakers imposed a temporary sales tax increase to avoid deep cuts to schools.

House Tax Chairman Dennis Lake, R-Blackfoot, said he’s aware that the $35.7 million tax-cut bill has enough co-sponsors in the House to guarantee its passage - 40 of the 70 House members. But he said, “I just want to make you a little uncomfortable with the decision you’re about to make with some facts.” Lake distributed charts and graphs showing how much the state has been taking in and spending, and its drained reserves accounts. “What we’re doing here … we are taking money out of our stabilization reserve funds and we’re using it for tax relief,” Lake told the House. “That’s only part of the story. What we’re taking out is one-time money, it’s only there one time. What we are spending is ongoing money. … So as you make your vote, just be a little uncomfortable with the facts and do as you will.”