Idaho governor signs record $600M income tax cut

MERIDIAN, Idaho (AP) — Idaho Gov. Brad Little has signed into law the biggest tax cut in the state's history.

The Republican governor on Friday signed the $600 million cut that includes a one-time $350 million in rebates and $250 million in permanent income tax reductions going forward for people and businesses.

Backers say the tax cuts return money to the people who paid it.

“Never in my life did I think we would achieve the ‘TRIFECTA’ – historic tax relief, historic education investments, and historic investments in transportation in one year. Some say, ‘You can’t have your cake and eat it, too,’ but clearly we are proving them wrong here in Idaho,” Governor Little said. “Taxes should be fair, simple, competitive, and predictable, and the passage of my ‘Leading Idaho’ income tax relief bill is a step in that direction. We are making Idaho even more business friendly and competitive.”

Opponents say the tax cuts mostly benefit the wealthy at the expense of essential government services.

The rebate includes 12 percent of state income taxes returned for filers during 2020, or $75 per taxpayer and dependent, whichever is greater.