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Idaho lawmakers propose sweeping cuts to income, sales taxes

Idaho Statehouse
Posted at 1:33 PM, Feb 16, 2021
and last updated 2021-02-16 17:24:59-05

BOISE, Idaho — Sweeping tax cuts proposed by Idaho lawmakers would slash assessments on all income brackets and lower the sales tax from 6% to 5.3% beginning next year.

The complex, 17-page proposal was introduced Tuesday in a House committee after Republican Gov. Brad Little called for $450 million in tax relief, including $295 million in one-time cuts and $160 million in permanent tax cuts. The proposed bill estimates it would result in $284 million in tax relief a year.

Despite the pandemic, Idaho has a budget surplus of about $600 million. Officials attribute much of that to federal virus relief funds and an influx of new residents.