Vote Smart's Synopsis:

Vote to pass a bill that reduces the income tax rates for the 2009 and 2010 tax years and establishes a tax credit for donations to provide direct care services for individuals with developmental type disabilities.

Highlights:

-Restructures the income tax rates for the 2009 and 2010 tax years as follows (Sec. A):

-Existing law:
-1.5 percent of all income for incomes not over $1,000; -$15 plus 2 percent of income over $1,000 for incomes over $1,000 but not over $2,000; -$35 plus 2.5 percent of income over $2,000 for incomes over $2,000 but not over $3,000; -$60 plus 3 percent of income over $3,000 for incomes over $3,000 but not over $4,000; -$90 plus 3.5 percent of income over $4,000 for incomes over $4,000 but not over $5,000; -$125 plus 4 percent of income over $5,000 for incomes over $5,000 but not over $6,000; -$165 plus 4.5 percent of income over $6,000 for incomes over $6,000 but not over $7,000; -$210 plus 5 percent of income over $7,000 for incomes over $7,000 but not over $8,000; -$260 plus 5.5 percent of income over $8,000 for incomes over $8,000 but not over $9,000; and -$315 plus 6 percent of income over $9,000 for incomes over $9,000;
-New law:
-1 percent of all income for incomes not over $1,000; -$10 plus 1.5 percent of income over $1,000 for incomes over $1,000 but not over $2,000; -$25 plus 2 percent of income over $2,000 for incomes over $2,000 but not over $3,000; -$45 plus 2.5 percent of income over $3,000 for incomes over $3,000 but not over $4,000; -$70 plus 3 percent of income over $4,000 for incomes over $4,000 but not over $5,000; -$100 plus 3.5 percent of income over $5,000 for incomes over $5,000 but not over $6,000; -$135 plus 4 percent of income over $6,000 for incomes over $6,000 but not over $7,000; -$175 plus 4.5 percent of income over $7,000 for incomes over $7,000 but not over $8,000; -$220 plus 5 percent of income over $8,000 for incomes over $8,000 but not over $9,000; and -$270 plus 5.5 percent of income over $9,000 for incomes over $9,000.

-Establishes a tax credit for donations to provide direct care services to individuals with developmental type disabilities, equal to 50 percent of the donation, provided the credit does not exceed the individual's tax liability (Sec. A). -This is a substitute bill sponsored by the House Committee on Tax Reform.

Full Bill Text