ID H0707

Reduces individual income tax rates beginning in 2012, with rates declining from 7.5% (2012) to 4.9% (2021 and thereafter) on income over $20,000.

Eliminates individual income tax for Idaho taxable income below $5,000 and applies a flat 4.9% rate on income between $5,000 and $20,000 for 2012 and thereafter.

Reduces corporate income tax rates from 7.6% (through 2012) to 4.9% (2021 and thereafter) in annual decrements.

Reduces franchise tax rates following the same schedule as corporate income tax rates.

Rate reductions may be suspended if the governor orders general fund spending cuts of 1% or more between July 1 and October 1, or if the legislature requests a freeze by concurrent resolution with gubernatorial concurrence.