Idaho House advances One Big Beautiful Bill tax cuts
BOISE, Idaho (KIFI) – The Idaho House of Representatives voted overwhelmingly Tuesday to adopt the federal tax cuts in the One Big Beautiful Bill.
In a 59 to 9 vote, the Idaho House agreed to implement the federal tax cuts in Idaho as part of its annual tax conformity bill House Bill 559.
The tax cuts include no taxes on tips, no taxes on overtime, a $6,000 deduction for seniors and a permanently doubled child tax credit.
Republicans argued the measures will spur job creation and put more money back in the hands of working Idahoans to further stimulate the economy.
“John F. Kennedy, when he talked about taxes, he said that one of the single largest barriers to full employment was higher taxes,” said Assistant Majority Leader Rep. Jason Monks R-Meridian. “... Do we want to reduce these taxes for people who are working for people who are earning overtime? People who are working overtime are people getting paid by the hour. These aren't our high corporate executive jobs. People who are making a living by receiving tips – these are our working class individuals. So are we going to increase their taxes, give them less incentive to work, or are we going to give them more incentive to work?"
Democrats argued that every penny cut from the state budget by adopting these cuts will take away from vital services.
"When we pull hundreds of millions of dollars out of the amount of money we have, particularly when we're already in a hole, this is going to come dollar for dollar – penny for penny – out of police, teacher pay, special ed, road and bridge repair, water and infrastructure projects, Meals on Wheels. colleges and universities,” said Minority Leader Rep. Ilana Rubel, D-Boise. “Tuition is going to go up. Fewer kids are going to be able to go to college. It's coming already out of nursing care for people with disabilities, coming out of critical mental health care for people having mental health crises."
The estimated total cost of the tax cuts in Idaho is $155 million this fiscal year and $175 million in fiscal Year 2027.
Two exceptions to the federal legislation were not included in Idaho’s legislation – bonus depreciation and research and experimental expenditures from 2022-2024.
The bill is co-sponsored by east Idaho legislators Rep. David Cannon, R-Blackfoot, and Senator Doug Ricks, R-Rexburg.
The legislation now advances to the Idaho Senate for further consideration.
