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BILL AS INTRODUCED 2007-2008

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H.160

Introduced by Representatives Branagan of Georgia, Brennan of Colchester, Hube of Londonderry, Otterman of Topsham and Winters of Williamstown

Referred to Committee on

Date:

Subject:  Taxation; income tax; rate reduction

Statement of purpose:  This bill proposes to reduce the 9.5-percent income tax rate to 9.0 percent.

AN ACT RELATING TO INCOME TAX RATE REDUCTION

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  32 V.S.A. § 5822(a) is amended to read:

§ 5822.  TAX ON INCOME OF INDIVIDUALS, ESTATES, AND TRUSTS

(a)  A tax is imposed for each taxable year upon the taxable income earned or received in that year by every individual, estate, and trust, subject to income taxation under the laws of the United States, in an amount determined by the following tables, and adjusted as required under this section:


(1)  Married individuals filing joint returns and surviving spouses:

  If taxable income is:                               The tax is:

  Not over $46,700.00                            3.6% of taxable income

  Over $46,700.00 but                            $1,681.00 plus 7.2% of

  not over $112,850.00                           the amount of taxable

                                                               income over $46,700.00

  Over $112,850.00 but                          $6,444.00 plus 8.5%

  not over $171,950.00                           of the amount of taxable

                                                               income over $112,850.00 

  Over $171,950.00 but                          $11,468.00 plus 9.0% of

  not over $307,050.00                           the amount of taxable

                                                               income over $171,950.00

 Over $307,050.00                                 $23,627.00 plus 9.5% of

                                                               the amount of taxable

                                                               income over $307,050.00

            (2)  Heads of households:

  If taxable income is:                               The tax is:

  Not over $37,450.00                            3.6% of taxable income

  Over $37,450.00 but                            $1,348.00 plus 7.2%

  not over $96,700.00                             of the amount of taxable

                                                               income over $37,450.00

  Over $96,700.00 but                            $5,614.00 plus 8.5%

  not over $156,600.00                           of the amount of taxable

                                                               income over $96,700.00

  Over $156,600.00 but                          $10,706.00 plus 9.0% of

  not over $307,050.00                           the amount of taxable

                                                               income over $156,600.00

  Over $307,050.00                                $24.246.00 plus 9.5% of

                                                               the amount of taxable

                                                               income over $307,050.00

(3)  Unmarried individuals (other than surviving spouse or head of household):

  If taxable income is:                               The tax is:

  Not over $27,950.00                            3.6% of taxable income

  Over $27,950.00 but                            $1,006.00 plus 7.2% of

  not over $67,700.00                             the amount of taxable

income over $27,950.00

  Over $67,700.00 but                            $3,868.00 plus 8.5% of

  not over $141,250.00                           the amount of taxable

                                                               income over $67,700.00

  Over $141,250.00 but                          $10,120.00 plus 9.0% of

  not over $307,050.00                           the amount of taxable

                                                               income over $141,250.00

  Over $307,050.00                                $25,042.00 plus 9.5% of

                                                               the amount of taxable

                                                               income over $307,050.00

(4)  Married individuals filing separate returns:

  If taxable income is:                        The tax is:

  Not over $23,350.00                                 3.6% of taxable income

  Over $23,350.00 but                                 $841.00 plus 7.2% of the

  not over $56,425.00                                  amount of taxable income

                                                                   over $23,350.00

  Over $56,425.00 but                                 $3,222.00 plus 8.5% of

  not over $85,975.00                      the amount of taxable

                                                                   income over $56,425.00

  Over $85,975.00 but                                 $5,734.00 plus 9.0% of

  not over $153,525.00                                the amount of taxable

                                                                   income over $85,975.00

  Over $153,525.00                                     $11,813.00 plus 9.5% of

                                                                   the amount of taxable income

                                                                   over $153,525.00

(5)  Estates and trusts:

  If taxable income is:                        The tax is:

  $1,850.00 or less                                       3.6% of taxable income

  Over $1,850.00 but                                   $67.00 plus 7.2% of the

  not over $4,400.00                                    amount of taxable income

                                                                   over $1,850.00

  Over $4,400.00 but                                   $250.00 plus 8.5% of the

  not over $6,750.00                                    amount of taxable income

                                                                   over $4,400.00

  Over $6,750.00 but                                   $450.00 plus 9.0% of the

  not over $9,200.00                                    amount of taxable income

                                                                   over $6,750.00

  Over $9,200.00                                         $670.00 plus 9.5% of the

                                                                   amount of taxable income

                                                                   over $9,200.00

Sec. 2.  EFFECTIVE DATE

       This act shall apply to taxable years 2007 and after.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us