Vote Smart's Synopsis:

Vote to pass a bill that reduces the state income tax rate.

Highlights:

• Establishes that the Department of Revenue shall collect an income surtax at a rate which is the percentage of the amount generated by each surtax imposed by the school district in 2011, as follows (Sec. 1):
• For 2012, 125 percent;
• For 2013, 115 percent;
• For 2014, 110 percent;
• For 2015, 105 percent; and
• For 2016, the amount shall be the total generated per surtax imposed by the school district in 2011.

• Specifies the tax rate on taxable income for all 9 tax brackets as follows (Sec. 2):
• 0.28 percent on income from $0 to $1,000;
• 0.57 percent on income from $1,000 to $2,000;
• 1.94 percent on income from $2,000 to $4,000;
• 3.6 percent on income from $4,000 to $9,000;
• 4.89 percent on income from $9,000 to $15,000;
• 5.18 percent on income from $15,000 to $20,000;
• 5.44 percent on income from $20,000 to $30,000;
• 6.33 percent on income from $30,000 to $45,000; and
• 7.18 percent on income exceeding $45,000.

• This act is effective January 1, 2012 (Sec. 3).

Full Bill Text