Vote Smart's Synopsis:

Vote to pass a bill that appropriates $100 for economic stimulus payments and 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, 2010.

Highlights:

- Appropriates $100 million from the Oil Tax Trust Fund to the Tax Commissioner for the allocation of economic stimulus payments, of which shall be mailed out by May 1, 2009 to each taxpayer who filed a 2007 income tax return and proportionate to the taxpayer's share of all individual income tax liability paid to the state for that taxable year (Sec. 1). - Restructures the income tax brackets and tax rates for singles, other than heads of households or surviving spouses, as follows (Sec. 2):

- 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 income 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. 2):

- 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. 2):

- 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 income over $186,475.

- Restructures the tax brackets and tax rates for heads of households as follows (Sec. 2):

- 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 $45,500 for incomes over $45,500 but not over $117,450; - $3,255.46 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. 2):

- 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