House panel OKs $22M tax cut proposal

Posted at 10:44 AM, Feb 01, 2016
and last updated 2016-02-01 19:26:54-05

BOISE, Idaho (AP) -- An Idaho House panel has cleared a $22.6 million tax cut proposal that would lower tax rates for the state's top individual earners and businesses.

The legislation would reduce the state's top two individual income tax rates currently at 7.4 percent and 7.1 percent by one-tenth of a percentage. The measure would then reduce the corporate income tax rate from 7.1 percent to 7 percent.

The House Revenue and Taxation Committee voted 13-2 Monday to send the bill to the House floor. Rep. Dan Rudolph of Lewiston was the only Democrat to vote in favor.

The measure would also increase Idaho's grocery tax credit by $10 per person. Under the bill, most eligible Idahoans would be reimbursed $110 for taxes paid on food.