Vetoed by Governor Linda Lingle

Vote Smart's Synopsis:

Vote to pass a bill that restructures the top personal income tax brackets and tax rates so as to provide for an increase for individuals in the top brackets while sustaining the existing tax rates for the remaining individuals, and increases the standard deduction amount.

Highlights:

-Restructures the top income tax brackets and tax rates for singles and married individuals filing separately, other than heads of households or surviving spouses, as follows (Sec. 2):

-Existing law:
-$3,214 plus 8.25 percent of income over $48,000 for incomes over $48,000;
-New law:
-$3,214 plus 8.25 percent of income over $48,000 for incomes over $48,000 but not over $200,000; -$15,754 plus 9 percent of income over $200,000 for incomes over $200,000 but not over $225,000; -$18,004 plus 10 percent of income over $225,000 for incomes over $225,000 but not over $275.00; and -$23,004 plus 11 percent of income over $275,000 for incomes over $275,000.

-Existing law:
-$6,427 plus 8.25 percent of income over $96,000 for incomes over $96,000;
-New law:
-$6,427 plus 8.25 percent of income over $96,000 for incomes over $96,000 but not over $350,000; -$27,382 plus 9 percent of income over $350,00 for incomes over $350,000 but not over $450,000; -$36,382 plus 10 percent of income over $450,00 for incomes over $450,00 but not over $550,000; and -$46,382 plus 11 percent of income over $550,000 for incomes over $550,000.

-Existing law:
-$4,820 plus 8.25 percent of income over $72,000 for incomes over $72,000;
-New law:
-$4,820 plus 8.25 percent of income over $72,000 for incomes over $72,000 but not over 250,000; -$19,505 plus 9 percent of income over $250,000 for incomes over $250,000 but not over $337,500; -$27,389 plus 10 percent of income over $337,500 for incomes over $337,500 but not over $412,500; and -$34,880 plus 11 percent of income over $412,500 for incomes over $412,500.

- Existing law:
-$2,000 singles and married individuals filing separately, other than heads of households or surviving spouses; -$4,000 for married couples filing jointly and surviving spouses; and -$2,930 for heads of households;
-New law:
-$2,200 singles and married individuals filing separately, other than heads of households or surviving spouses; -$4,400 for married couples filing jointly and surviving spouses; and -$3,212 for heads of households.

Full Bill Text