Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Income Tax Mechanics topic
No spam. Unsubscribe anytime.
Leaders: millionaire income tax draft still in development; pass-through mechanics under review
Summary
Legislative leadership said no complete income-tax bill is circulating yet and staff are focused on mechanics—particularly avoiding double taxation of pass-through businesses—and that a final draft could be ready in roughly a week to 10 days.
Legislative leaders told reporters there is not yet a finished draft of a proposed income or "millionaire" tax but staff and advisers are working on the technical mechanics, with a particular focus on preventing double taxation of pass-through business owners.
An unidentified Senate leader said the portion of the work seeking technical feedback focuses on the tax mechanics—for example, ensuring owners of pass-through businesses are not required to pay both B&O-style gross-receipts taxes and a new income-based millionaire tax.
"The piece that we are seeking technical feedback about is the mechanics of the tax," the leader said, describing consultations with accountants, lawyers and business stakeholders. Leadership said caucuses are discussing possible offsets for revenue, including a working-families tax credit, a small-business tax credit, sales-tax items and property-tax reductions.
Leaders framed the millionaire income tax as the larger progressive revenue vehicle for this biennium while acknowledging a range of hearings and proposals (including payroll-tax ideas) that members will evaluate in committees. They said hearings are the mechanism to air ideas and that it is too early to be definitive about what will reach the governor's desk.
