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INCOME TAX
Increases the state income tax on top earners by 1-3 percent for seven years, starting Jan, 1, 2012, and ending Dec. 31, 2018.
· For taxable income above $250,000 for single filers and above $500,000 for joint filers, the rate for the portion above those thresholds would increase by 1 percent, from 9.3 percent to 10.3 percent. (No change from governor’s previous measure.)
· For taxable income above $300,000 for single filers and above $600,000 for joint filers, the rate for the portion above those thresholds would increase by 2 percent, from 9.3 percent to 11.3 percent. (.5% increase over governor’s previous measure)
· For taxable income above $500,000 for single filers and above $1 million for joint filers, the rate for the portion above those thresholds would increase by 3 percent, from 9.3 percent to 12.3 percent. (1% increase over governor’s previous measure.)
SALES TAX
Raises the statewide sales tax by a quarter-cent, from 7.25 percent to 7.5 percent, for four years, starting Jan. 1, 2013, and ending Dec. 31, 2016. (Reduction from half-cent in governor’s previous measure.)
REVENUES
Approximate percentages of progressive income tax and regressive sales tax revenues:
85% progressive, 15% regressive.
Expected revenues:
First year (includes 18 months of income tax revenue): $7 - 9 billion
Ongoing: $5 - 7 billion per year
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