BOISE, Idaho – Gov. Brad Little and Legislature leaders announced today that a special session of the Legislature will be held on September 1 to use the state’s projected $2 billion budget surplus to address the impact of the 40th Senate – Counteract years of high inflation on individuals and schools.
“We are calling an extraordinary meeting to address the devastating impact of historic inflation on Idaho families and schools. The cost of basic necessities of life has skyrocketed and schools are burdened with rising operating costs. Idaho’s strong economic engine, combined with years of tax conservatism in the state government, means that tax receipts have outpaced government spending month after month, year after year. As a result, we’re now forecasting a new record budget surplus — $2 billion — hundreds of millions more than we expected. With the emergency ahead, we will give it back to the people and help our schools.” said Governor Little.
The unilateral inflation bill, under consideration by the Idaho Legislature on September 1, includes:
- Immediate TAX REDUCTION FOR EVERYONE – $500 million in immediate one-time income tax refunds. Idahoans will get a 10 percent refund of income taxes paid in 2020 minimum Discounts of $300 for individuals and $600 for joint applicants. Seniors who apply for the food tax credit are also eligible for the minimum rebate. The discounts will be introduced in September.
- Ongoing TAX REDUCTION FOR ALL through new lower, flat-rate income tax – Eliminates the first $2,500 in tax revenue for individuals and $5,000 for joint claimants, and introduces a new lower flat tax of 5.8 percent across the board (up from 6 percent), by more than $150 million ongoing facilities to provide to all working Idahoans beginning January 2023.
- New historic training investments with simultaneous tax reduction – Putting a total of $410 million towards education in Idaho through an ongoing sales tax transfer, the largest single investment in education in state history. The plan earmarks $330 million for K-12 public schools to help with rising costs due to inflation, and $80 million will go to training for in-demand careers and our institutions to the likely increase in training prepare for human resource development that will take place in times of economic uncertainty.
The bill under consideration by the legislature has a long list of bipartisan supporters.
Information on the 2022 Special Legislative Session, including the legislative language to be followed, the Memorandum of Understanding and list of co-sponsors, and the Governor’s Proclamation is available at https://gov.idaho.gov/legislative-sessions/2022-special-legislative-session/.
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