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Committee pauses debate on proposal to eliminate top income-tax bracket after cost estimate cited
Summary
Members discussed removing the 2.5% top income-tax bracket and replacing it with a 1.95% rate above a higher threshold. A cost estimate given during the meeting made members reluctant to advance the change; no vote was taken and committee recessed until after session.
The House Finance and Taxation Committee discussed a proposal to eliminate the top 2.5% individual income-tax bracket and instead apply a 1.95% rate above a higher income threshold for married filers. Committee members said they did not have time in the session to fully investigate the fiscal impact and paused action on the item.
Representative Dressler said he favored the bill's structure but asked for an estimate of the fiscal cost of removing the 2.5% bracket entirely. During the meeting a fiscal estimate was given that the change would cost on the order of hundreds of millions of dollars; committee members described the reported figure as "a little bit more than I think we're gonna get anybody to swallow right now." The exact dollar figure in the transcript was garbled; the committee did not adopt the change or take a vote. Members agreed to stand at ease and return to the item after session.
Committee members emphasized the need for a clear, verifiable fiscal estimate before proceeding. One member recalled that the House floor previously rejected a different proposal raising the standard deduction threshold in November and said the committee should be mindful of what the full chamber will accept.
No formal motions or votes were recorded on this item during the meeting.
