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Income tax reduction passes House

The House has passed a bill that reduces individual and corporate income taxes.

It was one of several proposals introduced.

Each tax rate is reduced by 10 percent. It could cost the state treasury $152 million over the next two years.

Opponents said this is not the time to cut back on revenues – when budgets are being reduced.

"When you make cuts in taxes when you have a surplus, gee, that makes sense," said Rep. Eliot Glassheim (D-Grand Forks), a member of the House Appropriations Committee. "But when you don't have extra money, why would you make cuts in taxes?"

But House Majority Leader Al Carlson (R-Fargo) says budget writers aren’t making budget cuts – they're scaling back on the proposed increases.

"Other than the Department of Transportation, I've been looking around trying to find a budget that got less money than it did last time, " said Carlson. "The reality is -- I haven't found one."

The bill passed 67 to 25. It will now be considered by the Senate.

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