So what to do with nearly $2 billion
Idaho's record surplus as Idaho
lawmakers wasting little time figuring
out what exactly to do with it?
Day three of the 2022 session
I know Republicans already have
a major tax bill in the works,
and they are touting it as a
great give back to Idaho wins.
The Dems, however,
argue this proposed legislation
would mostly and unfairly
just give back to the states,
wealthiest the middle class, they say,
would benefit more from a tax break.
Joe Paris.
Listen to those on both sides of this bill.
To ask the question,
is this the one or does this
one still need some work?
Idaho lawmakers at the ground
running this week and already they
have a major tax bill to debate.
Idaho Republicans are touting this
new legislation as a simple give
back in tax cut fry to haul winds
as the state sits on millions and
millions in budget surplus dollars.
We've got inflation going crazy across
the nation and across the state.
It's important to get this
money back to the people
House Majority Leader Republican Mike Moyle
is one of the sponsors of the tax bill.
He says the bill will consolidate
Idaho income tax brackets from 5 down
to four with the new lower rates.
Of 1% three percent,
4 1/2% and 6% respectively.
For each bracket.
Now the highest tax bracket will be
for people who make $5000 and more.
The bill would also lower the
corporate income tax from 6 1/2 to 6%.
And it also provides A1 time income tax.
Rebate of $350 million,
returning approximately 12% of
Idaho taxes paid in 2020 or $75
for each taxpayer independent
whatever amount is greater.
Most people in Idaho are in
that upper bracket, so we.
We're taking care of most
Idahoans with that bill,
but it is, you know,
some people don't pay any taxes.
It makes it hard to give back
money when they don't pay taxes.
That's why the bills written the way it is,
though we do give them $75 for every man,
woman and child if they don't pay taxes.
Representative Moyle says
with the budget surplus,
Republicans simply want to give
Idahoans their tax dollars back,
get it to their hands, or they
can use it to take kind of offset.
Some of the costs that are going up now.
Idaho Democrats say they appreciate
the idea, but that this tax bill
doesn't help those who need it most.
Now, we have an opportunity to prioritize.
Working Idahoans and bolstering
the middle class and this tax bill
would squander the opportunity.
Assistant House Minority Leader
Democrat Lauren Necochea says the cuts
would direct the largest benefits
to the top of the income spectrum.
Idaho Democrats would love to see
us take those dollars that we have
that are available and put them into
property tax reduction and would also
want to have a conversation about
repealing the sales tax on groceries.
Michael J adds that the tax brackets
purpos don't really translate
to everyone giving a fair share.
Yeah, there's no reason why a
millionaire should pay the same
percentage of their tax as a teacher,
and we would absolutely support
expanding those tax brackets.
Do you know to make those adjustments?
Every man, woman, and child is
going to get something you know.
It's it's a good bill and it's
going to lower our tax rates makes
us more competitive. Nationwide,
it's going to help the state of Idaho
look better to bring businesses here,
and it's going to help people stay in
their homes and and and jobs and work
here and stay here for their lives.
It's going to make it better for Idahoans,
which is a good thing.
Idaho Democrats argue the surplus
being used for this cut really isn't
a surplus, but instead the result
of bad policies and investments.
We under fund a lot of the things
that local government has to do,
and that schools have to do so if we put
more of that state funding and directed
it to schools and local governments,
we could reduce property taxes substantially,
and that's what Idahoans are asking for.
Moyle says it doesn't have to be
one or the other. There's enough
to do a lot of things that need to be
done and want to be done for a long time.
Which is what I was just gonna ask you Joe.
Yeah, they could address this
grocery bill tax and also the
property tax thing at a later date.
For sure. There's still a lot of
time left in the legislation,
but this is still fairly early and is
this one gonna get enough traction to
maybe even go to the governor's desk?
Well, some early indicators Brian to
me for my sources in the State House
and from the Idaho Republicans is
that there is some consensus that
this is a winner and according to
the Republicans and the governor's
office and representative Moyle,
we just heard from they both
confirmed to me that the governor
says if this were to get to his desk,
this is a piece of legislation
that he would sign off of.
And really, Brian,
when we heard the governor talk about
a tax rebate plan or a tax cut plan
in the state of the state on Monday,
this is really what that legislation
is so representative.
Moyle really works with some stakeholders,
including the governor's office,
to negotiate what this tax bill
would look like and representative
Moyle admitted to me it's not
exactly what he would want,
but it is the result of a compromise
with the governor's office.
And at the end of the day,
the governor needs to sign off
on it unless they override him.
But it's important to have
his support on this.
Meanwhile, though,
the Idaho Democrats are pushing back,
saying?
There could be better ways
to use this money, so a compromise
within within the Republican Party,
but not necessarily including
the Democrats in this compromise.
Like, yeah, good clarifier there.
OK, alright, thank you very much Joe.