H.B. 2389 Summary

• Eliminates individual income tax for single filers and heads of households earning less than $20,000 annually, and joint filers earning less than $40,000 annually, effective July 1, 2022.

• Reduces tax rates for low- and middle-income earners by scaling marginal tax rates more slowly across income brackets below $75,000.

• Creates new tax brackets for incomes above $96,000 with higher marginal rates (up to 11% for incomes over $400,000 for joint filers) to offset revenue loss.

• Based on 2016 data, projects revenue loss of $198 million from the income tax reduction would be offset by other revenue measures (referenced in Section 3, not detailed in provided text).

• Applies new tax schedules to taxable years beginning after December 31, 2021.