Every hard-working Idahoan deserves a tax cut, and that’s what we’re trying to provide with House Bill 332. This critical legislation would provide nearly $400 million in tax relief for Idaho families. Not only would the bill cut income tax, but it would also provide a rebate for people who paid income tax last year. This plan puts money back in the pockets of Idahoans, where it belongs.
This 2021 tax relief bill helps all income tax brackets. It cuts the top individual and corporate tax bracket by nearly half of a percentage point to 6.5%, retroactive to the start of this year. There’s a good chance you’re paying in that top tax bracket, which kicks in at just $11,760 in taxable income. In fact, more than 97% of all the income tax revenue Idaho collects comes from this top bracket. Bottom line, this is a cut for almost everyone who pays income tax and provides Idahoans with $169.4 million in ongoing tax relief.
This bill also gives taxpayers money right now, by providing a one-time sales tax/income tax rebate. A rebate check will be sent to 2020 personal income tax filers providing a minimum amount of $50 for each taxpayer and dependent or 9% of income taxes paid in 2019 whichever is greater. That means returning $220 million to Idaho taxpayers. Idahoans are encouraged to use those savings and that rebate however they see fit, should it be to supplement their grocery budget, help with household expenses or even offset their local property taxes.
As the Chairman of the Revenue & Taxation Committee in the House of Representatives, I believe in this legislation. Its co-sponsors, every member of House leadership, believe in it too. Right now, your state government has a surplus. Together, House Republicans have made it our mission to return this money to its rightful owners, you, the taxpayers of Idaho. This tax plan does that and more. It changes tax policy for the future to make it more equitable to individuals, small businesses, and families. Make sure your legislator is voting for House Bill 332.
Rep. Steven Harris,