Text: SSB01215                          Text: SSB01217
Text: SSB01200 - SSB01299               Text: SSB Index
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Senate Study Bill 1216

Bill Text

  1  2    1.  In its aim to simplify the Iowa individual income tax
  1  3 system, the general assembly hereby directs the department of
  1  4 revenue and finance, in consultation with the legislative
  1  5 fiscal bureau, to submit to the legislative service bureau no
  1  6 later than October 1, 1999, a proposal addressing the
  1  7 simplification of the Iowa individual income tax system with
  1  8 procedures for the implementation of the proposal for tax
  1  9 years beginning on or after January 1, 2000.  In drafting the
  1 10 simplification proposal the following guidelines shall be
  1 11 followed:
  1 12    a.  Federal adjusted gross income shall be used as the
  1 13 starting point for computing state income tax.
  1 14    b.  Any income tax change shall hold taxpayers harmless,
  1 15 i.e., no taxpayer should have an increase in tax liability
  1 16 over that under the present system.
  1 17    c.  The progressivity of the present Iowa individual income
  1 18 tax system shall be maintained.
  1 19    d.  The current provisions providing for the elimination of
  1 20 the marriage penalty shall be maintained.  The current married
  1 21 filing separately option should be replaced by a two-earner
  1 22 credit table that maintains the progressivity of the Iowa
  1 23 individual income tax system.
  1 24    e.  The number of income tax brackets should be reduced to
  1 25 not more than five.
  1 26    2.  Upon receipt of the simplification proposal by the
  1 27 legislative service bureau from the department of revenue and
  1 28 finance, the legislative service bureau shall draft the
  1 29 proposal in proper study bill form for each standing committee
  1 30 on ways and means denoting that the study bill is proposed by
  1 31 the department of revenue and finance pursuant to this Act.
  1 32 As soon as possible, the bureau shall send copies of the
  1 33 simplification proposal in study bill form to the chairpersons
  1 34 and ranking members of the standing committees on ways and
  1 35 means.  The study bill shall be drafted in time for the
  2  1 beginning of the 2000 regular session of the general assembly.  
  2  2                           EXPLANATION
  2  3    This bill directs the department of revenue and finance, in
  2  4 consultation with the legislative fiscal bureau, to submit a
  2  5 proposal addressing the simplification of Iowa's individual
  2  6 income tax system.  Guidelines are set for the department and
  2  7 include:  beginning with federal adjusted gross income,
  2  8 maintaining progressivity of the system, not increasing tax
  2  9 liability from the present system, maintaining the provisions
  2 10 that eliminate the marriage penalty, establishing a two-earner
  2 11 credit table in lieu of the current married filing separately
  2 12 option, and reducing tax rate brackets to not more than five.
  2 13 The legislative service bureau will draft the proposal as a
  2 14 study bill for the standing committees on ways and means.  
  2 15 LSB 1369SC 78
  2 16 mg/jw/5

Text: SSB01215                          Text: SSB01217
Text: SSB01200 - SSB01299               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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