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Monday, June 11, 2012
With most state legislative sessions drawing to a close, jurisdictions
are generally following the trend that began last year of avoiding tax
increases, and in some cases, cutting taxes as revenues begin to climb back to
Kansas (H.B. 2117)
recently reduced its top personal income tax rate to 4.9 percent from 6.45
percent, raised the standard deduction, and exempted certain nonwage income
attributable to a pass-through entity.
Maine enacted legislation (L.D.
849) aimed at gradually cutting its top tax rate from 8.5 percent to 4
percent. But the rate reduction is contingent upon surplus revenues in the
Other states enacted smaller tax cuts. Idaho (H.B. 563)
cut its highest personal income tax rate to 7.4 percent from 7.8 percent. Nebraska
L.B.970 cut the tax rates applicable to all but its highest bracket. Arizona (H.B.
2815) reduced the tax rate applied to capital gain income.
One exception to this tax rate cutting trend in 2012 was
1302), which raised the income tax rates applicable to single filers
earning over $100,000 per year and couples earning over $150,000.
By Steven Roll
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