The House Revenue & Taxation Committee has approved HB 563 on a 13-4 vote, and sent it to the full House with a recommendation that it "do pass." The bill, which permanently cuts individual and corporate income taxes for top earners by $35.7 million a year, is co-sponsored by 40 of the 70 members of the House. Rep. Marv Hagedorn, R-Meridian, told the committee, "The governor has recommended that we not collect this money, that we're collecting too much." House Majority Caucus Chairman Ken Roberts, R-Donnelly, who made the motion to pass the bill, said, "It's not the $45 million that the governor proposed in his budget ... but unless we move forward with putting a number and a tax bill before the Legislature, it's likely that the budget committee will basically spend everything we have."

Rep. John Rusche, D-Lewiston, said, "This proposal violates some of my principles. I don't think it's responsible to cut taxes when we can't meet the current needs," noting a half-billion dollars in deferred maintenance on state buildings, cuts in Medicaid, lagging state employee pay, school funding and drained reserves. Rusche said the committee heard testimony that a family of four with a $60,000 income would get no benefit from the cut. "This is a tax cut for the top, when we're still having the lower income people pay sales tax on food and clothing. I don't think it's fair at all," he said.

Just one Republican, committee Chairman Dennis Lake, R-Blackfoot, joined the panel's three Democrats in voting against the bill.