With a Democrat controlled U.S. Senate that is refusing to consider any of the House GOP’s legislation for job growth, action has increasingly turned to the state capitols. Legislators in Idaho have taken to this trend and are now attempting to significantly lower the tax burden on both individuals and corporations.
House Bill 548, introduced by Republican House Majority Leader Mike Moyle, would gradually reduce both the individual and corporate tax rates. Presently, the highest rate for both is 7.4%. HB 548 would bring them both down incrementally, until the highest level is 6.8%. The non-partisan Tax Foundation currently ranks Idaho’s tax burden as 25th out of the 50 states, and the business tax climate as 18th out of 50. HB 548 would surely improve both of these rankings, as well as leave Idahoans with more money in their paychecks to spend and thus further stimulate the economy.
Bills such as HB 548 are also important in the context of competition amongst the states. In an increasingly competitive economic climate, Idaho is jousting with states such as Wyoming, who do not levy an income tax at all. Thus, it is imperative that legislators in Boise do everything in their power to ensure that the Gem state is regionally competitive. Passing legislation such as HB 548, which reduces the tax rate on individuals and corporations which create and support jobs, will do just that. As of today, HB 548 has passed the Idaho House of Representatives and is pending approval in the State Senate.