SB 977

This bill expands the second individual income tax bracket as follows:

1. For single individuals, certain fiduciaries, and heads of households, the

current law tax rate of 4.40 percent applies to taxable income exceeding $14,320 but

not exceeding $112,500. Under current law, as adjusted for inflation, the second tax

bracket for single individuals, certain fiduciaries, and heads of households applies

to taxable income exceeding $14,320 but not exceeding $28,640.

2. For married persons filing a joint return, the 4.40 percent tax rate applies

to taxable income exceeding $19,090 but not exceeding $150,000. Under current law,

as adjusted for inflation, the second tax bracket for married persons filing a joint

return applies to taxable income exceeding $19,090 but not exceeding $38,190.

3. For married persons filing separate returns the 4.40 percent tax rate applies

to taxable income exceeding $9,550 but not exceeding $75,000. Under current law,

as adjusted for inflation, the second tax bracket for married persons filing separate

returns applies to taxable income exceeding $9,550 but not exceeding $19,090.

Under current law, there are four income tax brackets for single individuals,

certain fiduciaries, heads of households, and married persons, and the brackets are

indexed for inflation. The rate of taxation under current law for the lowest bracket

for single individuals, certain fiduciaries, heads of households, and married persons

is 3.50 percent of taxable income. The rate for the second bracket is 4.40 percent.

The rate for the third bracket is 5.3 percent. And the rate for the highest bracket is

7.65 percent.