Idaho lawmakers are scheduled to meet Thursday at the Statehouse to consider using the state’s projected $2 billion budget surplus for a $500 million income tax rebate.
Legislators will also consider spending money - a $410 million annual boost for K-12 schools and post-secondary education using sales taxes. The state’s business leaders have complained that Idaho’s education system is falling behind, hurting efforts to attract new companies and retain existing ones.
Republican Gov. Brad Little last week called the part-time Legislature back to Boise due to what he said was high inflation, currently about 8.5%, harming the education system and taxpayers’ purchasing power for gas and groceries.
A tax cut of more than $150 million annually by creating a corporate and individual flat tax rate of 5.8% starting next year is also on the table.
A majority of Republican and Democratic lawmakers have signed on as co-sponsors, but lawmakers say cracks could form around the tax and education policy details.In particular, some Democrats are concerned about the ongoing $150 million tax cut they say mainly benefits the wealthy, while some Republicans have doubts about the education portion of the bill, particularly a baked-in 3% boost each year to the initial $410 million.
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