Monday, April 6, 2009

State Income Tax For All?

Last week Sen. Kohl-Welles introduced SB 6147 which would impose an income tax on individuals making $500,000, or couples making $1 million. Or would it?

Mike Reitz from EFF noted an interesting fact about this bill on their blog:

But there's a flaw in the bill that could result in the 1% percent tax inadvertently applying to every taxpayer in the state! (I wish I could claim credit, but someone else pointed this out to me.)

Section 301 of the bill imposes a 1% tax on "all taxable income of resident individuals." Section 407 then lists the "standard deductions" -- $1 million for joint returns and $500,000 for individuals.

As most bills do, SB 6147 contains a severability clause, meaning if one section of the bill is struck down in court, the rest of the bill will survive.

Based on the ruling party's fondness for taking money other people earn to spend as they choose I think this should be duly noted.

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