Committee passes income tax proposal
The proposal would eliminate the 3 percent tax on the first $5,000 of taxable income. The Department of Revenue has said in the past the maximum amount a taxpayer could recoup by eliminating the 3 percent income tax bracket is $150 annually.
“This is the House’s attempt to have a tax decrease this year,” said Ways and Means Chair Jeff Smith, R-Columbus.
The proposal would not begin until the 2017 calendar year. The 3 percent tax bracket generates $134 million annually in revenue for the state.
The income tax cut was put in as a substitute to a Senate bill that would provide a larger income tax cut and business tax cut spread over 15 years, taking $577 million in today’s dollars out of the state revenue stream.
Daily Journal
4/5/16
Magnolia Tribune
