House
File
4

Introduced
HOUSE
FILE
4
BY
WAGNER
,
HELLAND
,
L.
MILLER
,
PAUSTIAN
,
KLEIN
,
ALONS
,
SODERBERG
,
GRASSLEY
,
DE
BOEF
,
ANDERSON
,
CHAMBERS
,
PEARSON
,
WORTHAN
,
HAGENOW
,
SANDS
,
HAGER
,
BYRNES
,
and
WINDSCHITL
A
BILL
FOR
An
Act
providing
for
a
reduction
in
the
individual
income
1
tax
rates
and
including
effective
date
and
applicability
2
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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4
Section
1.
Section
422.5,
subsection
1,
paragraphs
a
1
through
i,
Code
2011,
are
amended
to
read
as
follows:
2
a.
On
all
taxable
income
from
zero
through
one
thousand
3
dollars,
thirtysix
twentyeight
hundredths
of
one
percent.
4
b.
On
all
taxable
income
exceeding
one
thousand
dollars
but
5
not
exceeding
two
thousand
dollars,
seventytwo
fiftyseven
6
hundredths
of
one
percent.
7
c.
On
all
taxable
income
exceeding
two
thousand
dollars
but
8
not
exceeding
four
thousand
dollars,
two
one
and
fortythree
9
ninetyfour
hundredths
percent.
10
d.
On
all
taxable
income
exceeding
four
thousand
dollars
but
11
not
exceeding
nine
thousand
dollars,
four
three
and
onehalf
12
sixtenths
percent.
13
e.
On
all
taxable
income
exceeding
nine
thousand
dollars
14
but
not
exceeding
fifteen
thousand
dollars,
six
four
and
twelve
15
eightynine
hundredths
percent.
16
f.
On
all
taxable
income
exceeding
fifteen
thousand
dollars
17
but
not
exceeding
twenty
thousand
dollars,
six
five
and
18
fortyeight
eighteen
hundredths
percent.
19
g.
On
all
taxable
income
exceeding
twenty
thousand
dollars
20
but
not
exceeding
thirty
thousand
dollars,
six
five
and
21
eighttenths
fortyfour
hundredths
percent.
22
h.
On
all
taxable
income
exceeding
thirty
thousand
dollars
23
but
not
exceeding
fortyfive
thousand
dollars,
seven
six
and
24
ninetytwo
thirtythree
hundredths
percent.
25
i.
On
all
taxable
income
exceeding
fortyfive
thousand
26
dollars,
eight
seven
and
ninetyeight
eighteen
hundredths
27
percent.
28
Sec.
2.
EFFECTIVE
DATE
AND
APPLICABILITY.
This
Act
takes
29
effect
January
1,
2012,
and
applies
to
tax
years
beginning
on
30
or
after
that
date.
31
EXPLANATION
32
This
bill
reduces
by
approximately
20
percent
the
tax
rate
33
for
each
of
the
nine
tax
brackets
of
the
individual
income
tax.
34
The
current
individual
income
tax
rates
range
from
a
low
of
35
1
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84
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2
H.F.
4
.36
percent
to
a
high
of
8.98
percent.
The
bill
changes
these
1
rates
to
a
low
of
.28
percent
to
a
high
of
7.18
percent.
2
The
bill
takes
effect
January
1,
2012,
and
applies
to
tax
3
years
beginning
on
or
after
that
date.
4
2
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1482YH
(5)
84
tw/sc
2/
2