BOISE, Idaho — Idaho House lawmakers voted in favor of House Bill 40, which could potentially reduce individual and corporate income taxes. I'm your neighborhood reporter, Alexander Huddleston, learning more about what it would look like if this bill became law.
"We can argue about how much of a reduction it is and how low of a reduction it is, but at the end of the day, it is a tax reduction," exclaimed Rep. Kyle Harris.
Monday morning, house lawmakers continued the conversation on House Bill 40, aimed at reducing individual and corporate income taxes.
Rep. Lucas Cayler added, "I think the income tax reduction to 5.3, I think it's a net positive for the state of Idaho."
The current rate of taxes is 5.695% but this drop would cost the government around $240 million. A cost that many opposing the bill are uncomfortable with.
"Yes, constituents want tax relief. They also want to make sure the state is providing the kind of services they expect and the kind only the state can provide," explained Rep. Steve Berch.
Rep. Ilana Rubel beckoned, "It's going to leave us in a real pickle when it comes to funding things like public safety, law enforcement, infrastructure, and public education."
On the flip side, many who stood behind the bill praised that it would expand the income tax exemption to military pensions. Of course, at an additional cost of $12 million.
"Idaho as a state is one of only a handful of states that still taxes military members in their retirements," said Rep. David Leavitt.
Edward Hill tagged on, "It incentivizes more military to come here and retire. They come here because it's friendly, instead of going to Texas or Virginia where they have no taxes on retirements.
The bill will now move to the Senate.
