HB 234 -- Federal Income Tax Deduction and Rate Reduction

Co-Sponsors:  Levin, Secrest

This bill decreases the state corporate income tax rate
beginning September 1, 1999, from 6.25% to 5.5%.  The bill also
increases the state corporate federal income tax deduction,
beginning September 1, 1999, from 50% of the amount of federal
income taxes paid to 75% of the taxes paid.

In addition, the bill increases the state individual income tax
deduction for federal income taxes paid from $5,000 for single
taxpayers and $10,000 for married taxpayers to $10,000 and
$15,000, respectively.  This provision will take effect January
1, 1999.

The bill requires that any reduction in revenues as the result
of these tax changes not result in a reduction in appropriations
for education.