House panel OKs $36M tax cut for top earners

BOISE (AP) — Idaho's top-earning individuals and businesses would get tax relief worth $35.7 million under a bill that cleared a House committee earlier today.

The legislation introduced by House Majority Leader Mike Moyle of Star would reduce the income tax from 7.6 to 7.4 percent for corporations and from 7.8 to 7.4 percent for individuals earning upward of $36,000 before deductions.

The House Revenue and Taxation Committee voted 13-4 to advance the bill for consideration before the full chamber. Blackfoot Rep. Dennis Lake was the one GOP foe.

Moyle said the measure would telegraph Idaho's commitment to economic growth and help it compete with neighbors for new businesses.

Gov. Butch Otter supports the cut, for which he had vowed to set aside funds.

Lewiston Rep. John Rusche called it irresponsible when state agencies and programs are starved for funding.