Staff Analysis of the Legislation
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SUMMARY: LC 34 4535
This bill, called the More Take Home Pay Act of 2015, phases in a repeal of a number of exemptions, lowers the income tax to 4%, increases the sales tax to 5%, and adds some items to those that are taxable. The bill:
- reduces income tax rate to 4% over a three year period
- keeps itemized deductions and personal tax exemptions
- raises the sales tax to 5%
- phases in a grocery sales tax over a four year period to 5% (food stamps exempt)
- implements a communications service tax (state telecom - 5%; state cable - 5%; state direct satellite - 7%; local telecom - 1.25%; school telecom - .075%; local cable - 2%)
- increase cigarette tax over three years to $.65.
Click here for the anticipated effect of this change on a family.
EFFECTIVE DATE: Upon approval by the General Assembly and Governor.
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