The Idaho House of Representatives passed a bill to provide $600 million in income tax relief on Thursday.

It is the second week of Idaho’s legislative session, and lawmakers have been aiming to act swiftly on tax relief to help citizens with inflation, gas prices, and other expenses required to live sustainably.

HB 436 primarily focuses on income tax cuts and is the largest package ever in the state of Idaho. On the House floor, Democrats and Republicans debated whether this bill shows strategic execution of the money available to give back, the vote was 57-13.

According to the bill, $350 million would be distributed to taxpayers through one-time rebate checks, worth 12% of their paid state income tax in 2020, or $75 dollars, whichever is greater. The leftover $251 million will be spent to reduce income tax rates for corporations and individuals starting in 2023.

Miguel Legaretta, president of the Associated Taxpayers of Idaho, testified before the House’s Revenue and Taxation committee in a public hearing to explain the possible impact of the Tax Relief Bill.

With an estimated 2020 income and 2021 tax schedule, Legaretta used a hypothetical Idahoan household, or Spud Family. This is two working adults, and two minors, with 110,676 income, and a taxable portion of that income of $84,976.

“The tax prior to this bill would have been $4,238, after the passage of this bill it would be $3,276. So essentially it is a reduction of taxes owed of $988 for the spud family, of which $582 is the rebate, they would receive that one time, obviously, and the other $384 would be the ongoing portion,” said Legaretta.

Republican representatives support the bill saying it takes a step forward in their Conservative Agenda for the 2022 Legislation. There is also interest in grocery and property tax relief, representatives say there will still be opportunity to make changes in those areas.

“This is a great bill. This moves Idaho marketably in the right direction,” said Representative Mike Moyle, R-Star.

One of the concerns of some House members is that the bill may primarily benefit the wealthy rather than middle, and lower class families.

“The wealthy and well-connected are showered with money and there are scraps for the people that need it,” said Representative Ilana Rubel, D-Boise.

Rubel explains her concern that once this bill is passed and the $600 million is spent through income tax relief, options for other tax cuts will no longer be available.

Representative Caroline Troy, R-Genesee, offered her perspective through her experience in fundraising on the topic of the bill benefiting Idaho’s wealthy.

“Those are the people that show up and help our communities across the state and I am so tired of hearing that it’s the millionaires only the millionaires that are going to benefit from this. And if this tax break is benefiting our millionaires, I know it’s going to come back to our little communities everywhere in this State, and I am thankful for that,” said Troy.

Education infrastructure is a priority for members of the Senate and House, and Reprepresenative James Ruchti, D-Pocatello, highlights that it is important to keep that priority in mind when it comes to this bill.

“Frankly, I don’t dislike the idea of providing tax relief through income tax rebates or permanent cuts, but when you take $600 million of the surplus and you dedicate it, and you do it at the beginning of the session, we’ve now committed,” said Ruchti.

The bill now heads to the Senate.

Jessica Megis is an intern with the University of Idaho McClure Center for Public Policy Research and the UI JAMM News Service.