Vote Smart's Synopsis:

Vote to pass a bill that restructures the income tax brackets and tax rates so as to provide for a reduction for singles, married couples filing jointly, surviving spouses, married individuals filing separately, heads of households, and estates and trusts for taxable years beginning after December 31, 2008.

Highlights:

- Restructures the income tax brackets and tax rates for singles, other than heads of households or surviving spouses, as follows (Sec. 1):

- Existing law:
- 2.1 percent of all income for incomes not over $27,050; - $568.05 plus 3.92 percent of income over $27,050 for incomes over $27,050 but not over $65,550; - $2,077.25 plus 4.34 percent of income over $65,550 for incomes over $65,550 but not over $136,750; - $5,167.33 plus 5.04 percent of income over $136,750 for incomes over $136,750 but not over $297,350; and - $13,261.57 plus 5.54 percent of income over $297,350 for incomes over $297,350.
- New law:
- 1.81 percent of all income for incomes not over $33,950; - $614.50 plus 3.38 percent of income over $33,950 for incomes over $33,950 but not over $82,250; - $2,247.04 plus 3.75 percent of income over $82,250 for incomes over $82,250 but not over $171,550; - $5,595.79 plus 4.35 percent of income over $171,550 for incomes over $171,550 but not over $372,950; and - $14,356.69 plus 4.78 percent of income over $372,950 for incomes over $372,950.

- Restructures the tax brackets and tax rates for married couples filing jointly and surviving spouses as follows (Sec. 1):

- Existing law:
- 2.1 percent of all income for incomes not over $45,200; - $949.20 plus 3.92 percent of income over $45,200 for incomes over $45,200 but not over $109,250; - $3,459.96 plus 4.34 percent of income over $109,250 for incomes over $109,250 but not over $166,500; - $5,944.61 plus 5.04 percent of income over $166,500 for incomes over $166,500 but not over $297,350; and - $12,539.45 plus 5.54 percent of income over $297,350 for incomes over $297,350.
- New law:
- 1.81 percent of all income for incomes not over $56,750; - $1,027.18 plus 3.38 percent of income over $56,750 for incomes over $56,750 but not over $137,050; - $3,741.32 plus 3.75 percent of income over $137,050 for incomes over $137,050 but not over $208,850; - $6,433.82 plus 4.35 percent of income over $208,850 for incomes over $208,850 but not over $372,950; and - $13,572.17 plus 4.78 percent of income over $372,950 for incomes over $372,950.

- Restructures the tax brackets and tax rates for married individuals filing separately as follows (Sec. 1):

- Existing law:
- 2.1 percent of all income for incomes not over $22,600; - $474.60 plus 3.92 percent of income over $22,600 for incomes over $22,600 but not over $54,625; - $1,729.98 plus 4.34 percent of income over $54,625 for incomes over $54,625 but not over $83,250; - $2,972.31 plus 5.04 percent of income over $83,250 for incomes over $83,250 but not over $148,675; and - $6,269.73 plus 5.54 percent of income over $148,675 for incomes over $148,675.
- New law:
- 1.81 percent of all income for incomes not over $28,375; - $513.59 plus 3.38 percent of income over $28,375 for incomes over 28,375 but not over $68,525; - $1,870.66 plus 3.75 percent of income over $68,525 for incomes over $68,525 but not over $104,425; - $3,216.91 plus 4.35 percent of income over $104,425 for incomes over $104,425 but not over $186,475; and - $6,786.08 plus 4.78 percent of income over $186,475 for incomes over $186,475.

- Restructures the tax brackets and tax rates for heads of households as follows (Sec. 1):

- Existing law:
- 2.1 percent of all income for incomes not over $36,250; - $761.25 plus 3.92 percent of income over $36,250 for incomes over $36,250 but not over $93,650; - $3,011.33 plus 4.34 percent of income over $93,650 for incomes over $93,650 but not over $151,650; - $5,528.53 plus 5.04 percent of income over $151,650 for incomes over $151,650 but not over $297,350; and - $12,871.81 plus 5.54 percent of income over $297,350 for incomes over $297,350.
- New law:
- 1.81 percent of all income for incomes not over $45,500; - $823.55 plus 3.38 percent of income over $45,000 for incomes over $45,000 but not over $117,450; - $3,225.46 plus 3.75 percent of income over $117,450 for incomes over $117,450 but not over $190,200; - $5,983.59 plus 4.35 percent of income over $190,200 for incomes over $190,200 but not over $372,950; and - $13,933.21 plus 4.78 percent of income over $372,950 for incomes over $372,950.

- Restructures the tax brackets and tax rates for estates and trusts as follows (Sec. 1):

- Existing law:
- 2.1 percent of all income for incomes not over $1,800; - $37.80 plus 3.92 percent of income over $1,800 for incomes over $1,800 but not over $4,250; - $133.84 plus 4.34 percent of income over $4,250 for incomes over $4,250 but not over $6,500; - $231.49 plus 5.04 percent of income over $6,500 for incomes over $6,500 but not over $8,900; and - $352.45 plus 5.54 percent of income over $8,900 for incomes over $8,900.
- New law:
- 1.81 percent of all income for incomes not over $2,300; - $41.63 plus 3.38 percent of income over $2,300 for incomes over $2,300 but not over $5,350; - $144.72 plus 3.75 percent of income over $5,350 for incomes over $5,350 but not over $8,200; - $251.60 plus 4.35 percent of income over $8,200 for incomes over $8,200 but not over $11,150; and - $379.92 plus 4.78 percent of income over $11,150 for incomes over $11,150.

Full Bill Text