Senate expected to offer its own version
State Director Suzanne Budge reports from Boise on the small-business agenda for the legislative week ending February 9
Gov. Butch Otter and Lt. Gov. Brad Little will hold a Telephone Town Hall exclusively for NFIB members on Tuesday, February 13, at 10 a.m. They will discuss their state-based, health-care plan. Click here for more details.
This is a chance for NFIB members to chat with the governor and lieutenant governor about their plans for reducing premium costs and providing access to more flexible insurance products.
Tax Cut Bill Passes House
A legislative measure reducing state income taxes passed the House on a 59-11 vote. It’s now been referred to the Senate Local Government Committee. H463 is the governor’s plan to align state and federal taxes. There are battle lines are being drawn, however, between the House and Senate and the governor. A competing bill will be introduced by Sens. Dan Johnson and Jeff Siddoway February 12.
H463 would conform Idaho’s income tax code for 2018 to federal changes, including the doubling of the standard deduction, and the removal of dependent exemptions. These federal changes cost Idaho taxpayers $97 million more in 2018. The state tax code is adjusted to offset the increase, by lowering all personal and corporate income tax rates by 0.475 percent, or $159.6 million, and creating a new non-refundable Idaho child tax credit of $130 per child.
Bottom Line: $202 million in tax cuts to Idahoans, and a net reduction in state general fund tax revenues of $104 million. This is just the beginning of the battle over tax cuts in the 2018 session of the Legislature. Expect this issue to be in play for the remainder of the session with competing proposals between Senate and House. Small business deductions for pass-through entities are in play.
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