A House Democrat amendment to the income tax bill (Senate Bill 6346) redesigns the bill to expand to include more and more people, even before the majority gets a chance to remove the $1 million deduction.
SB 6346 levies a 9.9% income tax on everyone, but provides a temporary deduction of $1 million. It initially included an annual adjustment to the $1 million threshold to account for inflation. A House Democrat amendment replaced that with an adjustment every two years. It also bases this on a more slow-growing national look at inflation.
Now, the $1 million threshold will grow at only one-third the rate of inflation over time. This means that people who aren’t millionaires today will be swept up into the tax even if their income only grows with inflation.
Senate Republicans have repeatedly reminded everyone that Senate Bill 6346 is an INCOME TAX, despite the majority’s attempt to brand it as a “millionaire’s tax.” We have argued that the tax WILL expand to include the rest of us, especially since the Senate majority leader called the Democrat vote to ban an income tax two years ago a “pie crust promise” — easily made, easily broken.
These changes to the bill made by House Democrats will result in more of you paying an income tax sooner rather than later.
And don’t forget…voters won’t be able to overturn the income tax through referendum, thanks to a clause Democrats refuse to remove.
More changes are sure to come. The House of Representatives has been debating amendments to the income tax nonstop since yesterday.
–Senate Republican Leader John Braun