Text: SSB01215 Text: SSB01217 Text: SSB01200 - SSB01299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. INCOME TAX SIMPLIFICATION PROPOSAL. 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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