Tuesday, March 22, 2011

Millionaire's Tax in Senate. (Updated)

A bill (SB 4171) from Republican Senator John Bonacic has appeared that:
Relates to creating the middle class circuit breaker tax credit, and to the tax rate of certain taxpayers earning over one million dollars.

This sounds a lot like the true millionaire's tax that Bonacic had promised he would introduce. More to follow as bill language and bill memo are made public.

According to the bill's memo, the extension of the millionaire's tax will continue for actual millionaires until 2013. It says these funds will be used to serve as a "circuit breaker" for people making under $250,000 a year, who pay a disproportionate share of their income in property taxes.
The revenue would also be used to offset education cuts.

Fiscal Implications:
The fiscal implications of the circuit breaker legislation are estimated not to exceed $2.3 billion. The revenue derived by the State by maintaining the current income tax rate, on those earning more than $1million, would equal an estimated $3.362 billion.

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