$200M tax cut plan heads to Idaho Senate

$200M tax cut plan heads to Idaho Senate
Posted at 11:20 AM, Feb 22, 2018

A sweeping $200 million tax cut plan faces just one more hurdle before it can land on Gov. C.L. "Butch" Otter's desk for his signature.

The Senate Local Government and Taxation Committee narrowly voted 5-4 on Wednesday to send the tax relief package to the Idaho Senate.

The plan would align Idaho's income tax code to recent federal changes in the tax overhaul signed by President Donald Trump. The Republican-controlled Legislature is facing increased pressure to pass tax relief this year, with an election in May and taxpayers expected to pay roughly $100 million more next year if the state conforms to the new federal policy.

If approved, all seven of Idaho's brackets for personal income tax rates and corporate tax rates would be reduced by 0.475 percent. Doing so would lower the state's general fund by $159.6 million. The child tax credit would slash the fund by $42.3 million