Vote Smart's Synopsis:

Vote to pass a bill that reduces income tax rates for certain individuals, effective January 1, 2013.

Highlights:

• Establishes the following income tax rate for single persons in taxable years beginning with January 1, 2013, and ending on December 31, 2014 (Sec. 2):
• 0 percent on taxable income not greater than $15,000;
• 2.25 percent on all taxable income equal to $15,000;
• 2.25 percent on all taxable income greater than $15,000, but less than $35,000
• 3.5 percent on all taxable income equal to $35,000; and
• 3.5 percent on all taxable income in excess of $35,000.

• Establishes the following income tax rates for married persons filing joint returns, head of household, and surviving spouse in taxable years beginning with January 1, 2013, and ending on December 31, 2014 (Sec. 2):
• 0 percent on taxable income not in excess of $30,000;
• 2.25 percent on taxable income equal to $30,000;
• 2.25 percent on taxable income greater than $30,000, but less than $70,000;
• 3.5 percent on taxable income equal to $70,000; and
• 3.5 percent on taxable income in excess of $70,000.

• Establishes the following income tax rates for married persons filing separate returns in taxable years beginning with January 1, 2013, and ending on December 31, 2014 (Sec. 2):
• 0 percent on taxable income not in excess of $15,000;
• 2.25 percent on taxable income equal to $15,000;
• 2.25 percent on taxable income greater than $15,000, but less than $35,000;
• 3.5 percent on taxable income equal to $35,000; and
• 3.5 percent on taxable income in excess of $35,000.

• Authorizes a decrease of .25 in each individual income tax rate if the growth in state revenue is greater than or equal to 5 percent, beginning on or after January 1, 2015 (Sec. 2).

• Authorizes the incremental reduction for any tax rate, contingent upon the state's revenue growth, until the 3.5 percent tax rate equals 0 (Sec. 2).

• Prohibits the state from imposing income taxes on taxable incomes once the individual tax rates of 3.5 and 2.25 percent have been reduced to 0 (Sec. 2).

Full Bill Text