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 TLSB 1482YH (5) 84 tw/sc

H.F. 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, thirty-six twenty-eight hundredths of one percent. 4 b. On all taxable income exceeding one thousand dollars but 5 not exceeding two thousand dollars, seventy-two fifty-seven 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 forty-three 9 ninety-four hundredths percent. 10 d. On all taxable income exceeding four thousand dollars but 11 not exceeding nine thousand dollars, four three and one-half 12 six-tenths percent. 13 e. On all taxable income exceeding nine thousand dollars 14 but not exceeding fifteen thousand dollars, six four and twelve 15 eighty-nine hundredths percent. 16 f. On all taxable income exceeding fifteen thousand dollars 17 but not exceeding twenty thousand dollars, six five and 18 forty-eight eighteen hundredths percent. 19 g. On all taxable income exceeding twenty thousand dollars 20 but not exceeding thirty thousand dollars, six five and 21 eight-tenths forty-four hundredths percent. 22 h. On all taxable income exceeding thirty thousand dollars 23 but not exceeding forty-five thousand dollars, seven six and 24 ninety-two thirty-three hundredths percent. 25 i. On all taxable income exceeding forty-five thousand 26 dollars, eight seven and ninety-eight 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- LSB 1482YH (5) 84 tw/sc 1/ 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- LSB 1482YH (5) 84 tw/sc 2/ 2