On Monday of this week, 53 of 70 Idaho elected legislators in the House of Representatives voted for HB548 to reduce your family and business income tax burden! Every Idahoan, their family and/or employer or business will participate in the income tax rate reduction. This tax break is for all Idahoans whether your income rate is in the lowest bracket at 1.6 percent, in the middle at 5.1 percent or the top at 7.4 percent. This will leave additional money in your pocket for family purchases, business investment and overall Idaho economic stimulation.

The best part of HB548 is the reasonableness upon which it is built. The income rate reduction does not take effect until after the state of Idaho revenues flowing into the general fund exceed 3 percent more than the previous year's totals. In other words, no state revenue growth, no income tax break. This is a fail-safe check on this tax reduction policy. It ensures Idaho's economy will be strong and growing before any income tax rate reduction is allowed.

Let's put this personal and business income tax rate reduction and associated state revenue into perspective using actual dollars. There has been talk HB548 will cost the state $126 million over the six-year period of income tax rate reduction. However, that's not the full story. For the tax breaks to take effect, total state revenues must increase by 3 percent or approximately $540 million during this same six-year period of time. Significantly, the net income tax revenue to Idaho government will equal approximately $414 million.

This net state tax revenue increase of approximately $414 million can then be used by the legislature to finance public school operating funds, increase school teachers beginning salaries or offer merit bonuses. It could be used by the legislature to pay for additional state troopers on our state highways to promote safety. It could even be used for a wide range of other worthy projects that benefit all Idahoans such as water quality, transportation, environment or health care considerations - all issues Idahoans care about.

Importantly, this income tax rate reduction allows Idaho families and individuals to keep their personal tax savings in their own pocket. Even one dollar in tax savings is one more dollar Idahoans will have with HB548.

Despite some opponents of HB548 claiming it is a break for only the top wage earners in Idaho, it is not. HB548 will help keep money in your pocket proportionate to the amount of wage you earn. Everyone gets a tax break, everyone saves. With this tax savings, Idahoans paying income taxes will be able to save their money for another day, or spend it treating themselves to something they need or desire, or donate it to a favorite cause.

HB548 is important for Idaho to build our state economy and support local businesses in providing jobs in the community. When the top rate on income tax declines to 6.8 percent, Idaho will levy the lowest income tax rate of states that levy an income tax in the Pacific Northwest, even lower than Montana. This low income tax rate is important for businesses that seek to set up shop in Idaho, employ Idahoans providing an income to support their families, and to buy the things necessary or desired for their daily life. This personal spending further generates sales tax for local communities, police protection and perhaps better local roads.

HB548 is simple, responsible tax policy. It requires a strong economy before it provides tax relief. Everyone who pays income taxes benefits, the state economy grows from increased consumer spending and business growth, we support our families with things we desire or need, and businesses are able to invest in the ways and means of production, creating jobs to support everything around us.

Bill Connors is president of the Idaho Chamber Alliance.