BOISE—Idaho Governor Brad Little on Tuesday called a special session of the Legislative Assembly starting next week aimed at using part of the state’s projected $2 billion budget surplus to a record income tax refund of $500 million this year to help residents cope with rising food and gas prices due to inflation.
The Republican governor also proposed a tax cut of more than $150 million a year by creating a flat tax rate for corporations and individuals of 5.8% starting next year. The corporate tax rate is currently 6%, the same rate for the highest income bracket in the state. Under the bill, the first $2,500 of income for individuals and $5,000 for joint filers would be exempt from tax.
Little wants to bolster K-12 public schools and post-secondary education with $410 million a year from sales taxes starting next year. Of the $410 million, $330 million is proposed for K-12 and $80 million for post-secondary education.