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| 3 | 3 | | LCO No. 1176 1 of 2 |
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| 4 | 4 | | |
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| 5 | 5 | | General Assembly Proposed Bill No. 602 |
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| 6 | 6 | | January Session, 2025 |
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| 7 | 7 | | LCO No. 1176 |
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| 8 | 8 | | |
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| 9 | 9 | | |
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| 10 | 10 | | Referred to Committee on FINANCE, REVENUE AND |
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| 11 | 11 | | BONDING |
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| 12 | 12 | | |
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| 13 | 13 | | |
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| 14 | 14 | | Introduced by: |
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| 15 | 15 | | SEN. FAZIO, 36th Dist. |
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| 16 | 16 | | |
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| 17 | 17 | | |
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| 18 | 18 | | |
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| 19 | 19 | | AN ACT CONCERNING THE PERSONAL INCOME TAX MARGINAL |
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| 20 | 20 | | RATES, THE ASSET EXPENSE DEDUCTION FOR CORPORATIONS |
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| 21 | 21 | | AND THE LIMIT OF BOND ISSUANCES THE STATE BOND |
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| 22 | 22 | | COMMISSION MAY AUTHORIZE. |
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| 23 | 23 | | Be it enacted by the Senate and House of Representatives in General |
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| 24 | 24 | | Assembly convened: |
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| 25 | 25 | | |
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| 26 | 26 | | That the general statutes be amended to: (1) For taxable and income 1 |
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| 27 | 27 | | years commencing on and after January 1, 2028, (A) reduce the marginal 2 |
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| 28 | 28 | | rates for the personal income tax by (i) two percentage points for 3 |
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| 29 | 29 | | unmarried individuals and married individuals filing separately, with 4 |
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| 30 | 30 | | federal adjusted gross income of less than one hundred thousand 5 |
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| 31 | 31 | | dollars, (ii) one and one-half percentage points for such individuals with 6 |
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| 32 | 32 | | federal adjusted gross income of one hundred thousand dollars or more 7 |
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| 33 | 33 | | but less than two hundred fifty thousand dollars, (iii) one percentage 8 |
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| 34 | 34 | | point for such individuals with federal adjusted gross income of two 9 |
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| 35 | 35 | | hundred fifty thousand dollars or more, and (iv) proportional amounts 10 |
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| 36 | 36 | | for individuals filing as heads of households and married individuals 11 |
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| 37 | 37 | | filing jointly; and (B) allow a taxpayer eligible to claim an asset expense 12 |
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| 38 | 38 | | deduction under Section 179 of the Internal Revenue Code to claim the 13 Proposed Bill No. 602 |
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| 39 | 39 | | |
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| 40 | 40 | | |
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| 41 | 41 | | LCO No. 1176 2 of 2 |
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| 42 | 42 | | |
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| 43 | 43 | | entirety of such deduction at once in lieu of the current apportionment 14 |
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| 44 | 44 | | method over five years; (2) establish a task force to develop a plan to 15 |
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| 45 | 45 | | implement the specified personal income tax rate reductions in a 16 |
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| 46 | 46 | | revenue-neutral way through the reduction of long-term spending and 17 |
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| 47 | 47 | | the elimination of tax expenditures the task force determines are not 18 |
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| 48 | 48 | | generating economic growth or are no longer serving their intended 19 |
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| 49 | 49 | | purpose; and (3) limit the amount of bond issuances the State Bond 20 |
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| 50 | 50 | | Commission may authorize to not more than the amount of estimated 21 |
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| 51 | 51 | | revenue projected for the fiscal year divided by fifteen. 22 |
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| 52 | 52 | | Statement of Purpose: |
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| 53 | 53 | | To (1) reduce the marginal rates for the personal income tax and allow |
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| 54 | 54 | | an eligible taxpayer to claim the entirety of an asset expense deduction |
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| 55 | 55 | | under Section 179 of the Internal Revenue Code at once rather than |
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| 56 | 56 | | incrementally, for taxable and income years commencing January 1, |
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| 57 | 57 | | 2028, (2) establish a task force to develop a plan to implement the |
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| 58 | 58 | | specified personal income tax rate reductions in a revenue-neutral way, |
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| 59 | 59 | | and (3) limit the amount of bond issuances the State Bond Commission |
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| 60 | 60 | | may authorize to not more than the amount of estimated revenue |
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| 61 | 61 | | projected for the fiscal year divided by fifteen. |
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