Loading chat...
AR SB2
Bill
Status
10/15/2021
Primary Sponsor
Jim Hendren
Click for details
AI Summary
-
Increases the standard deduction for income tax purposes from $2,200 to $3,300 per taxpayer for tax years beginning January 1, 2022.
-
Creates an earned income tax credit equal to at least 5% of the federal earned income tax credit under 26 U.S.C. § 32, funded by revenues in the Earned Income Tax Credit Trust Fund and effective for tax years beginning January 1, 2023.
-
Reduces income tax rates for individuals, trusts, and estates with net income below $22,200, establishing a new tax bracket structure with rates ranging from 0% to 3.4%.
-
Imposes a 20% special excise tax on retail cigarette sales, with revenues distributed to reduce income tax costs ($55 million in fiscal 2022, then $83.7 million annually beginning July 1, 2022) and remaining revenues to the Earned Income Tax Credit Trust Fund.
-
Imposes a privilege tax on e-cigarettes equal to the total tax on other tobacco products, with revenues credited to the General Revenue Fund.
Legislative Description
To Create An Earned Income Tax Credit, An Increased Standard Deduction, And An Individual Income Tax Reduction; And To Provide Funding For Income Tax Reductions Through New Taxes On Cigarettes And E-cigarettes.
Last Action
Died in Senate Committee at Sine Die adjournment.
10/15/2021